SAURASHTRA CEMENT LTD. Q1 FY27 Results

Saurashtra Cement's consolidated (primary) net profit fell 45.9% year-on-year to ₹9.13 Cr (EPS ₹0.82) for Q1 FY27, against ₹16.85 Cr (EPS ₹1.52) a year ago, even as consolidated revenue grew 7.8% YoY to ₹456.75 Cr. Sequentially, PAT was down 51.5% from ₹18.83 Cr in Q4 FY26, though the year-on-year read is the primary one here. No street consensus estimates for this stock turned up in available previews (it appears to lack formal brokerage coverage); broader cement-sector commentary from the same reporting window flags input-cost inflation and pricing pressure weighing on peers' margins, consistent with the compression seen in this print. The company has no formal guidance or outlook on record and there is no prior concall in our records to check this result against — flagging that absence rather than skipping it.

The margin hit was a cost story, not a revenue one. Consolidated net profit margin compressed to roughly 2.0% of revenue from 3.93% a year ago (4.18% last quarter), as total expenses rose 11.9% YoY to ₹450.05 Cr against 7.8% revenue growth. The single largest swing sits in inventories: the company moved from a ₹7.33 Cr credit (inventory build-up) in Q1 FY26 to a ₹21.68 Cr charge (destocking) this quarter, a roughly ₹29 Cr unfavourable turn, compounded by a 35.9% YoY jump in stores & repairs to ₹38.27 Cr. These were partly offset by lower freight & forwarding (-5.6% YoY) and employee costs (-4.7% YoY), and flat power & fuel spend. Neither this quarter nor the year-ago quarter carried exceptional items, so the decline is fully operational and the YoY comparison is clean of one-offs on both sides.

The stock went into the print at ₹68.93, up 27.7% over the past month of trading.

By segment, the core cement business's profit fell about 27% YoY to ₹24.34 Cr even as its revenue grew 7.5% YoY to ₹433.72 Cr, confirming the cost pressure sits within cement operations rather than being a mix effect. The Paints segment's loss widened to ₹9.36 Cr from ₹4.18 Cr YoY on ₹23.02 Cr of revenue (+14.1% YoY) — a second straight quarter of a widening loss that is now a meaningful drag on group profitability. Among the quarter's other developments, the company won partial relief in an income-tax appeal (11-14 Jul 2026) and received a SEBI exemption order tied to an acquisition (15 Jul 2026); neither carries a quantified P&L impact in this filing. The kiln was taken down for its annual maintenance shutdown on 21 Jul 2026, just after the quarter closed — a marker for Q2 FY27 volumes and costs, especially given stores & repairs spend was already elevated this quarter. No management press release accompanying this result was available to cross-check against the reported numbers.