Saurashtra Cem. Q2 FY27 Results (NSE: SAURASHCEM)
Signal: Slipped to loss
The read
The recovery seen in Q4FY26 has reversed: Q2FY27 revenue fell 2.3% YoY to 37673.02 lakh, raw-material intensity rose 348bps to 22.9%, and both operating segments reported losses, driving a 912.73 lakh consolidated PAT loss versus a 448.60 lakh profit a year ago.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹376.73 Cr | -2.3% | -18.0% |
| EBIT | ₹-9.79 Cr | +39.9% | |
| Net profit | ₹-9.13 Cr | -303.4% | |
| EPS | ₹-0.79 | -302.6% | |
| EBIT margin | 0.1% |
P&L walk
Revenue declined 2.3% YoY to 37673.02 lakh; raw-material intensity rose to 22.9% from 19.4%, EBITDA was approximately 50.56 lakh, and the group reported a 912.73 lakh loss after both cement and paints remained loss-making.
Segments
Paints was the main drag at a 638.28 lakh loss despite revenue growth of 25.1% YoY, while cement also slipped to a 333.60 lakh loss from a 964.33 lakh loss a year ago and from a 2434.40 lakh profit sequentially; the subsidiary added a 7.27 lakh loss.
Key positives
- Paints revenue grew 25.1% YoY to 1842.42 lakh, although the segment still reported a 638.28 lakh loss.
- Consolidated segment assets rose 3.0% YoY to 162443.91 lakh while H1 depreciation increased only 1.2% to 2136.69 lakh, producing a clean depreciation-to-asset-base check.
- Employee benefit expense declined 18.2% YoY to 2788.95 lakh, partially offsetting higher freight and power costs.
Key concerns
- Consolidated revenue declined 2.3% YoY to 37673.02 lakh and 18.0% sequentially, reversing the 7.8% growth reported in Q1FY27.
- Gross margin compressed approximately 408bps YoY as raw-material, purchase and inventory costs rose to about 17.0% of revenue from 13.0%; the filing does not disclose the driver.
- Both cement and paints reported segment losses of 333.60 lakh and 638.28 lakh respectively, leaving consolidated EBITDA approximately 50.56 lakh and PAT negative at 912.73 lakh.
- Operating cash flow was negative 2730.93 lakh in H1FY27 versus a 6539.13 lakh inflow in H1FY26, while net cash declined by 13166.19 lakh.
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