Sagar Cements shares fall over 4.6 pc on weak Q2 quarterly performance

Mumbai, Oct 24 (IANS) Shares of Telangana-based Sagar Cements fell nearly 4 per cent on Friday, hitting an intra-day low of Rs 232.9 on the NSE after the company reported its September 2025 quarter (Q2 FY26) results.

At 12:43 p.m., the stock was trading at Rs 230.83, down by Rs 11.37 or 4.69 per cent from the previous close of Rs 242.2.

The company’s market capitalisation stood at Rs 3,084 crore, with a 52-week high of Rs 299.4 and a low of Rs 168.

Sagar Cements posted weaker numbers on a sequential quarter-on-quarter (QoQ) basis.

Revenue fell around 10 per cent from Rs 670.66 crore in Q1 FY26, while operating EBITDA declined 58 per cent from Rs 121.45 crore.

The company had recorded a profit after tax of Rs 74.9 crore in the previous quarter, compared to Rs 44.17 crore loss in the quarter under review.

The weaker sequential performance was mainly due to plant shutdowns and higher employee-related costs.

“During Q2 FY26, the kiln at the Dachepalli plant was shut down for the commissioning of a new preheater, while the kiln at the Mattampally plant underwent a maintenance shutdown in September 2025,” the company said.

“These shutdowns led to a reduction in clinker stocks, thereby impacting profitability for Q2FY26,” the company added.

Revenue was also affected by a 5 per cent decline in volumes on a sequential basis.

Additionally, the company completed its employee appraisal process for FY26 effective from April 1, 2025, which led to an increase in employee expenses during the quarter.

However, on year-on-year (YoY), the firm reported consolidated revenue from operations of Rs 601.86 crore in Q2 FY26 -- marking a 27 per cent rise from Rs 475.12 crore in the same quarter last financial year.

Its operating earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 158 per cent to Rs 51.33 crore from Rs 19.33 crore in the year-ago period.

The company’s loss after tax narrowed to Rs 44.17 crore against Rs 56.98 crore in Q2 FY25.

--IANS

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