Digvijay Cement Q1: revenue +72% on Hi-Bond traded volumes but PAT halves to ₹6.8 Cr as finance costs spike
PAT -50.5% YoY · revenue +72.1% · margins compressing
₹337.27 Cr
+72.1% YoY
₹6.82 Cr
-50.5% YoY
2.02%
-5pp YoY
₹0.46
Shree Digvijay Cement's Q1 FY27 (consolidated) is a classic revenue-up, profit-down quarter. Revenue from operations jumped 72.1% YoY (and 61.8% QoQ) to ₹337.27 Cr, yet net profit fell 50.5% YoY to ₹6.82 Cr and EPS halved to ₹0.46 from ₹0.93. The topline surge is almost entirely a mix effect: under the new Brand Usage, Supply & Distributorship Agreement (BDA) with Hi-Bond Cement, the company sold 2.49 lakh MT of cement made at Hi-Bond's plant, lifting total volume to 6.06 lakh tonnes (vs 3.59 lakh YoY) but bringing ₹120.92 Cr of sub-contracting cost that carries thin margins — so revenue nearly doubled while profitability shrank.
Q1 FY-2027 vs prior quarters
The margin bridge sits below EBITDA. Operating EBITDA actually rose ~20% YoY to ₹30.28 Cr, but EBITDA/tonne collapsed to ₹500 from ₹701 a year ago on the diluted volume mix. The real profit killer was below the line: finance costs exploded to ₹11.63 Cr from just ₹0.58 Cr YoY (segment liabilities have more than doubled to ₹780 Cr from ₹354 Cr), and depreciation rose to ₹9.50 Cr from ₹6.09 Cr — evidence of a debt-funded capacity/expansion push. Net margin compressed to 2.0% from 7.0% YoY (and 3.8% last quarter). PBT fell to ₹9.15 Cr from ₹18.52 Cr YoY.
The stock went into the print at ₹76.16, up 1.5% over the past month of trading.
For context: revenue is at a 6-quarter high.
Management (press release) frames the quarter as impacted by geopolitical uncertainty raising input and logistics costs, and stays 'confident in long-term growth potential' — but offers no formal guidance, and no analyst consensus exists for this micro-cap, so there is no street or guidance benchmark to score the print against. The numbers only partly support the upbeat framing: volume growth and EBITDA expansion are real, but the halving of profit is driven by the company's own leverage and the low-margin trading construct, not just external costs. The quarter also saw a leadership transition, with Amit Arora formally taking over as CEO & Managing Director. Net-net, this is a weak profit quarter dressed in a strong revenue headline; whether the Hi-Bond volume and the higher debt load start paying through to the bottom line is the question for H2.
W1
Whether Hi-Bond BDA volumes (2.49 lakh MT this quarter) start contributing at better than the current ₹500/tonne EBITDA blend
W2
Finance cost trajectory after the jump to ₹11.63 Cr/qtr and the doubling of segment liabilities to ₹780 Cr — sustainability of the debt-funded expansion
W3
Whether higher depreciation (₹9.50 Cr, up from ₹6.09 Cr) signals commissioned capacity that lifts core cement realisations in coming quarters
Digitally-native PDF, clear. Consolidated ≈ standalone (wholly-owned subsidiary SDCCL Logistics, NCI nil). Revenue near-doubling driven by new Hi-Bond BDA sub-contracted/traded cement (sub-contracting cost ₹120.92 Cr this qtr vs nil YoY); no exceptional items. PBT crushed by finance costs jumping to ₹11.63 Cr (vs ₹0.58 Cr YoY) and higher depreciation ₹9.50 Cr (vs ₹6.09 Cr).