Shiva Cement Q2 FY27: standalone loss narrows 30% YoY on margin surge, but widens QoQ

Shiva Cement's standalone revenue came in at ₹112.70 Cr, up 37.3% YoY from ₹82.11 Cr but down 25.6% QoQ from ₹151.49 Cr. The standalone net loss narrowed to ₹22.85 Cr from ₹32.73 Cr a year ago (-30.2% YoY), though it widened from ₹21.35 Cr in Q1 FY27 (+7.0% QoQ); EPS loss was ₹0.77 versus ₹1.11 YoY and ₹0.72 QoQ. Only a standalone statement was filed. There is no analyst street coverage on record for this stock and a web search found no consensus estimates, so the print cannot be benchmarked against the Street; management has also issued no formal numeric guidance, so there is no outlook to measure the result against either. Operating margin (OPM) expanded sharply to 15.4% from 4.9% a year ago and 12.3% last quarter, helped by better grinding-unit performance and cost discipline even as power and fuel costs rose to ₹52.89 Cr from ₹41.09 Cr YoY. But finance costs of ₹35.33 Cr (+12.4% YoY) and depreciation of ₹11.41 Cr continue to eat into the operating gains, keeping the company loss-making; a ₹5.58 Cr net deferred-tax credit, which included a ₹2.58 Cr reversal of previously recognised deferred tax assets, cushioned the bottom line. The 25.6% QoQ revenue drop reflects the seasonal monsoon-quarter slowdown typical for cement demand in India, which also explains why net margin (NPM) actually compressed QoQ (-13.99% to -20.10%) even as OPM improved. The auditors' limited review flagged a material going-concern uncertainty (Note 5), citing a ₹44.20 Cr loss for H1 FY27 and accumulated losses of ₹602.50 Cr; total equity turned more negative, to -₹65.27 Cr from -₹21.95 Cr at end-March 2026. Management's own framing rests the going-concern basis on the improved grinding-unit performance, dolomite mining that began in August 2026 after receiving the Consent to Operate, unspecified strategic business initiatives, and the proposed amalgamation with JSW Cement that the board approved on September 29, 2026 (a 5:41 share-swap ratio) - none of which has yet translated into a profit in this quarter's numbers.