Volume surge masked by severe margin compression; PAT fell despite 20% revenue growth

Revenue grew 20–23% YoY; call shows 23% standalone but volume mix benefit modest given -2% QoQ

EBITDA margin fell to 16.9% from 21.9% YoY (570 bps compression); EBITDA down 5% despite +20% revenue

PAT down 15% YoY and 17% QoQ in Q1; preponed ₹50–60 Cr maintenance only partially masks structural margin loss

Management explicitly cautious: 'competitive intensity will continue'; tailwind from UAE import ban 'temporary'

17 plants Q1, targeting ₹250 Cr FY27 revenue (only ₹35–40 Cr Q1); 4–7% margins, still loss-making per-unit

Prior call likely assumed 20%+ EBITDA margin on volume growth. Q1 delivered 16.9% (down from 21.9%). Cost inflation (fuel, diesel) larger than anticipated.

Management initially framed as upside; now explicit that UAE import ban relief is 'first half only' and 'things will normalize'.

Jaisalmer, Bikaner, Bhatinda remain on schedule for FY28 commissioning. No acceleration or delay signaled. Coal block monetization pushed to FY29.

First public quarterly disclosure: ₹35–40 Cr Q1 revenue from 17 plants. Target ₹250 Cr FY27 (implies massive Q2–Q4 acceleration). But 4–7% margin is below cement core business.

Central India expansion (including Bihar grinding unit) is major driver. Market share maintained in North/South.

₹150/ton increase expected. Packaging cost drop will offset some. Q2 maintenance only marginally lower than Q1 preponed amount.

No postponement plans. On schedule. Next phase (50 MT) to be put to Board at appropriate time.

Prices flat currently. Expect no material price drop in monsoon due to cost support. But demand seasonality will lower volumes.

Targeting 22.5–23 MT for full year; double-digit growth. But North/South capacity-constrained; Central India is only growth engine.

UAE import restriction a major positive. But competitiveness will continue once imports normalize. Q2 may see some benefit, then things stabilize.

Targeting 50 by FY27, 100 by FY28. Q1 revenue ₹35–40 Cr from 17 plants, targeting ₹100 Cr quarterly by year-end. 4–7% EBITDA margin; not a high-margin business but required to retain cement volumes.

Coal from end of FY28. Second block 1 year later. Substantial savings expected; reduces fuel cost risk significantly.

Entry to support putty distribution (shared retail platform). Limited ₹600 Cr capex approved. Q1 revenue ₹125 Cr breakeven. FY27 target ₹500–550 Cr. Helps putty growth but core capex reserved for cement.

Yes, ₹150 is net of all factors (fuel, diesel, maintenance timing). Will see operating deleverage also.

No, we do not share regional profitability. North and South at 85–90% capacity; Central India is growth driver.

Approximately ₹100/ton fuel and ₹50/ton diesel-related. Packaging flat or marginally lower.

Marginal losses today as ramp-up. Each plant takes ~3 months to breakeven. At scale, 4–7% EBITDA margins typical for RMC.

Q2 will peak. Decline expected thereafter based on current fuel environment.

FY27 target ₹500–550 Cr; breakeven achieved in Q1 at EBITDA level. Growth from new product lines and distribution.

Targeting ₹250 Cr topline; could touch ₹300 Cr. Each quarter improving as plants stabilize. Single-digit loss expected full year.

Yes, ₹150 factors in everything. But railways limited to North plants; Central and South by road only.

First focus is to utilize full Saifco capacity. Expansion decision later once business is profitable and approvals secured.

Some imports coming in, but not at normal quantities. Waiting to see how situation evolves.

Mix effect: dry-mix mortar (UAE) added to consolidated RM cost but cement volume not increased similarly. No diesel price impact on dry-mix (local business).

Planned preponment. When kiln shows red spot, maintenance taken early. No volume loss; had high clinker stock.

FY29 expected ₹225–250 Cr (down from ₹300 Cr historical due to GST input credit benefit). From FY29 onwards back to ₹300 Cr.

Depends on demand. Annual number revised quarterly. Effort to maximize volume while maintaining pricing and profitability strategically.

Grey yes, double-digit certain. White console-level may not be possible due to UAE restrictions and geopolitical headwinds.

Yes, to reduce toll manufacturing dependence. Plan to grow putty double-digit YoY; capacity critical.

Working towards that. Will share specific numbers closer to close. Broad target 5–7% with revenue growing another ₹150 Cr.

FY27: ₹3,500 Cr. FY28: ₹1,200 Cr. Next leg of expansion (50 MT by FY30) timeline pending board approval and business environment review.

40% petcoke, 45% Indian coal, balance alternate fuels. Continuously evolving mix based on economics and availability due to geopolitical shifts.

Working on that; should achieve in this fiscal FY27. No clinker shortage expected for Central India volumes.

Not waiting for full commissioning. Will likely decide once commissioning is in next few months. Board approval needed; will review balance sheet and timing end of FY27 or early FY28.

Implies Q1 ~5.6 MT. Remaining 3 quarters need ~4.6–4.8 MT (single-digit QoQ growth). Central India growth locked in; North/South capacity constrained.

Implies +₹375–425 Cr over 3 quarters. Ramp depends on distribution scaling and market acceptance. Capex capped at ₹600 Cr; limited expansion scope.

Implies ₹210–215 Cr over Q2–Q4. 50 plants by year-end required. Execution risk on plant ramp-up; each takes 3 months to stabilize.

Implicit from guidance. Cost headwinds (fuel ₹100/ton, diesel ₹50/ton) expected Q2 only; but Q1 already shows 570 bps compression vs. prior year. Recovery depends on pricing power (uncertain) and demand recovery.

Requires top-line scaling to ₹650–700 Cr FY28 (from ₹500–550 Cr FY27) with operating leverage. Strategy is to develop on business earnings, not capital.

Jaisalmer on track H1 FY28 commission. Bikaner/Bhatinda expected FY27 completion. Debt/EBITDA rising; fundraising or asset sales may be needed.

Implies lower spend post-major projects. Next leg (50 MT by FY30) timing TBD, likely post-Jaisalmer stabilization.

Volume +20% but EBITDA −5%, PAT −15%. Per-ton economics deteriorating (EBITDA/ton −20% YoY). Suggests either raw material cost inflation or pricing power loss greater than acknowledged.

Q2 guidance ₹150/ton cost increase (₹100 fuel, ₹50 diesel). Q1 already saw margin compression despite volume growth. Monsoon seasonality will lower volumes, amplifying operating deleverage.

White cement +11% growth in Q1 attributed to UAE import ban (geopolitical). Management explicit: competitiveness will continue post-normalization. Could lose 2–3 points of consolidated growth if import restrictions lifted.

North and South plants running at 85–90% effective capacity. Grey cement growth restricted to Central India. If Central India demand softens or market share gains reverse, company constrained.

Net debt ₹3,864 Cr (1.69x EBITDA). Capex ₹3,500 Cr FY27, ₹1,200 Cr FY28. Next leg expansion (50 MT by FY30) will require additional capex. Leverage could peak at 2.0x+ if EBITDA doesn't recover.

RMC targeting 50 plants by FY27 (from 17 in Q1), 100 by FY28. Paint targeting ₹550 Cr revenue. Both nascent, unprofitable. Plant-level unit economics 4–7% (RMC) and currently breakeven (paint). Ramp-up delays or margin disappointments could impact capex ROI.