Star Cement has reported a 6.5% increase in revenue for the first quarter of FY27, reaching ₹902 crore, up from ₹847 crore in the same period last year. EBITDA for the quarter stood at ₹203 crore, a decrease from ₹230 crore, primarily attributed to increased subsidy, packing material costs, and shutdown expenses. Profit after tax was ₹74 crore compared to ₹98 crore year-on-year. The company also discussed its production volumes, sales, and future expansion plans, including the Rajasthan project.
Star Cement Reports Q1 FY27 Financials
Star Cement Limited has announced its unaudited financial results for the first quarter ended June 30, 2026. The company’s total revenue for the quarter stood at ₹902 crore, marking a 6.5% increase compared to ₹847 crore in the corresponding quarter of the previous year. The EBITDA for the period was reported at ₹203 crore, down from ₹230 crore in Q1 FY26. This decrease was mainly influenced by factors such as reduced subsidy income, higher packing material costs, and shutdown expenses incurred on one of its kilns.
Profit After Tax (PAT) for the quarter was ₹74 crore, a decline from ₹98 crore reported in the same quarter last year. On a per-ton basis, EBITDA was ₹1,497, compared to ₹1,774 per ton in the prior year’s first quarter.
Operational Highlights and Sales Performance
In terms of production, Star Cement produced 9.10 lakh tons of clinker in Q1 FY27, an increase from 8.90 lakh tons in the same period last year. Cement production also saw an uptick, reaching 13.08 lakh tons compared to 12.31 lakh tons year-on-year. Sales volume for cement was 13.02 lakh tons, with clinker sales at 0.52 lakh tons. This is against sales of 12.22 lakh tons of cement and 0.74 lakh tons of clinker in the comparable quarter last year.
Geographically, cement sales in the Northeast region amounted to 8.71 lakh tons, slightly higher than 8.67 lakh tons in Q1 FY26. Sales outside the Northeast were 4.31 lakh tons, up from 3.55 lakh tons in the previous year. The blend mix comprised approximately 15% OPC and the rest PPC.
Cost and Pricing Dynamics
The company noted an increase in fuel cost to ₹1.55 in Q1 FY27 from ₹1.33 in Q4 FY26. The cost is expected to decrease to around ₹1.45 in Q2 FY27 and further reduce in subsequent quarters. PP bag prices are influenced by global conditions. Prices in Northeast and outside Northeast markets (Bihar, West Bengal) have remained broadly stable, with a slight increase of INR3 in the Northeast and higher increases in Bihar and West Bengal.
Expansion and Future Outlook
Star Cement is progressing with its Rajasthan project, with plans for the Nimbol clinker plant involving significant capital investment. The company anticipates the Rajasthan project to involve an overall capex of approximately ₹2,600 crore to ₹2,700 crore, with a primary focus on the North region over the next two years. Discussions are also ongoing regarding potential expansion in West Bengal, pending the announcement of the state’s industrial policy.
Looking ahead, the company expects demand to improve in the latter half of the year, driven by pent-up demand post-monsoon and flood season. For FY27, Star Cement anticipates an industry growth rate of about 7% and aims for an 8% to 9% growth in its Northeast operations. The company is also exploring solar captive power opportunities and other cost-saving initiatives, including improved logistics and potential EV adoption for transportation.
Source: BSE
