Star Cement Limited hosted an earnings conference call on November 12, 2026, to discuss its Q2 and H1 FY27 financial results. The company provided significant insights into its capacity expansion projects, including the Nimbol plant, and outlined capex plans totaling INR3,080 crore for the Nimbol unit. Management expressed confidence in a strong second half of the fiscal year, projecting double-digit volume growth driven by pent-up demand and stabilization in the Northeast market.
“We do expect the pent-up demand to show up in the second half of the year. We do expect double-digit growth in the second half, in terms of volume.”
Financial Highlights and Volume Performance
During the quarter ended September ’26, Star Cement reported sales of 11.23 lakh tons of cement and 0.74 lakh tons of clinker. Clinker production stood at 9.08 lakh tons, while cement production reached 11.56 lakh tons. Total revenue for the quarter was approximately INR831 crore, with EBITDA at around INR164 crore and profit after tax at INR39.58 crore. For the half-year ended September ’26, total revenue was around INR1,774 crore, with EBITDA at approximately INR367 crore and profit after tax at INR113 crore.
Expansion and Capex Plans
The company detailed its expansion strategies, including an increase in the Nimbol clinker capacity to 6 million tons. The capex for this project is estimated at INR3,080 crore. Star Cement is also evaluating expansion in the eastern region, with potential for a 2 million ton plant in either Bihar or West Bengal. The Siliguri grinding unit capex is estimated at INR350 crore, while the Bihar plant capex could be around INR550 crore. The company plans to upload a detailed presentation on capex numbers for the current, next year, and FY29 within a week.
Market Outlook and Growth Projections
Management anticipates a strong rebound in demand in the second half of the fiscal year, forecasting double-digit volume growth. This is attributed to pent-up demand following the monsoon and elections. The company expects the Northeast market to stabilize, with growth projected around 7%-8% for the industry and a higher double-digit growth for Star Cement. For the full year, the company is targeting around INR100 crore in non-cement revenue.
Operational and Cost Management
Star Cement highlighted its efforts in cost management, particularly concerning fuel costs. Despite industry-wide price increases, the company aims to maintain fuel costs around INR1.5 per kcal, supported by a three-month stock of coal and ongoing FSA deliveries. The operationalization of the Silchar railway siding by January is expected to bring cost savings in fly ash. The company also noted its strategy to selectively sell clinker at increased prices to ensure good realization and avoid market oversupply.
RMC Unit Development
Star Cement is also ramping up its Ready-Mix Concrete (RMC) units, with plans to open one in Gujarat and recently opening units in Siliguri and Guwahati. The company sees potential for RMC activities to commence in North India within the next four to five months, supporting local markets and planned grinding units.
Source: BSE
