India · Delayed Price · Currency is INR Star Cement Earnings Call Transcripts
Fiscal Year 2026
-
Strong revenue and profit growth in FY 2026, with robust volume expansion and improved margins. Major CapEx projects are planned, while fuel cost pressures and new competition in Northeast pose risks to future profitability.
-
Q3 FY26 delivered strong revenue and EBITDA growth, driven by higher volumes and improved realizations, especially in the Northeast. Expansion projects in Rajasthan, Haryana, Bihar, and Assam are on track, with disciplined capital allocation and stable profitability outlook.
-
Q2 FY26 delivered strong revenue and profit growth, driven by higher sales volumes and improved margins. Expansion projects in Silchar, Bihar, and Rajasthan are progressing, with robust demand in the Northeast and stable pricing. CapEx for FY26 is set at INR 710-720 crore.
-
Q1 FY26 delivered strong revenue and profit growth, with EBITDA nearly doubling year-over-year. Expansion projects are on track, incentives remain robust, and the company is targeting higher premium sales and green energy adoption while maintaining prudent leverage.
Fiscal Year 2025
-
Q4 FY2025 saw strong revenue and EBITDA growth driven by higher production and sales, with incentives and premium cement sales contributing to improved margins. CapEx plans remain robust, and no major new competition is expected in the Northeast region.
-
Q3 FY25 saw 10% sales growth and higher revenue, but EBITDA and PAT declined due to one-off costs and higher depreciation. Outlook is positive with volume and EBITDA growth expected as new capacities stabilize and market demand in Northeast remains robust.
-
Q2 FY25 saw revenue growth but lower EBITDA and PAT due to higher depreciation from new plant capitalizations. Northeast market outperformed, while outside Northeast faced losses. CapEx guidance was reduced, with key projects delayed by a few months. Profitability is expected to improve in Q4 as new capacity stabilizes.
-
Q1 FY25 performance was impacted by severe monsoon and elections, leading to flat cement volumes and lower profitability due to one-time clinker purchases and higher depreciation. Management revised full-year volume growth to 15% and expects EBITDA per ton to recover to INR 1,500 as cost savings and SGST benefits materialize.