Sagar Cements Q2 loss narrows to ₹42 crore on 27% revenue growth and higher sales volumes

Sagar Cements Ltd on Thursday (October 23) reported its Q2 results with a net loss of ₹42.17 crore, narrowing from a loss of ₹55.77 crore in the same period last year.

The company’s revenue grew 27% to ₹601.8 crore from ₹475.1 crore year-over-year. EBITDA for the quarter stood at ₹51.28 crore, up from ₹19.98 crore in Q2 last year, while the EBITDA margin improved to 8.52% from 4.21% year-over-year.

The company reported a 17% increase in sales in Q2 FY26 compared to Q2 FY25. Trade sale volume and non-trade sale volume also increased by 17% each, while blended sale volume rose by 13% in the same period.

The average freight per tonne during Q2 FY26 stood at ₹855, reflecting a 3% (₹25) increase compared to Q2 FY25. Packed sales accounted for 68% of total sales in Q2 FY26, up slightly from 67% in Q2 FY25.

Also Read: Sagar Cements Q1 Results: Profitability returns, price hikes contribute to topline

During the quarter, 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. These shutdowns led to a reduction in clinker stocks, impacting profitability for Q2 FY26.

Consequently, other expenses increased due to lower absorption of fixed costs. Revenue from operations was also lower during the quarter due to a 5% sequential QoQ volume reduction.

In Q1 FY26, the company had accounted for an incentive income of ₹34.34 crore, whereas in Q2 FY26, incentive income was ₹10.14 crore, resulting in a reduction of ₹24.2 crore in other operating income. During Q2 FY26, Sagar Cements completed the employee appraisal process for FY26, effective from April 1, 2025, which led to an increase in employee expenses for the quarter.

Also Read: Sagar Cements returns to profit, sees growth led by Andhra, Telangana demand

Other major cost components, such as raw materials, power & fuel, and freight, remained stable compared to Q1 FY26. The raw material cost per ton during Q2 FY26 was ₹812, up from ₹779 per tonne in Q2 FY25. Employee costs amounted to ₹295 per tonne in Q2 FY26, compared to ₹267 per tonne in Q2 FY25.

Shares of Sagar Cements Ltd ended at ₹240.50, down by ₹2.34, or 0.96%, on the BSE.

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