This article first appeared on GuruFocus .
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Clinker Production:11.59 lakh tonnes in Q4 FY26, up from 11.38 lakh tonnes in Q4 FY25.
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Cement Production:16.45 lakh tonnes in Q4 FY26, up from 14.79 lakh tonnes in Q4 FY25.
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Cement Sales Volume:16.18 lakh tonnes in Q4 FY26, up from 14.75 lakh tonnes in Q4 FY25.
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Clinker Sales Volume:1.15 lakh tonnes in Q4 FY26, up from 0.57 lakh tonnes in Q4 FY25.
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Revenue:INR 1,174 crores in Q4 FY26, up from INR 1,052 crores in Q4 FY25.
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EBITDA (excluding exceptional items):INR 324 crores in Q4 FY26, up from INR 268 crores in Q4 FY25.
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Profit After Tax:INR 147 crores in Q4 FY26, up from INR 123 crores in Q4 FY25.
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Per Tonne EBITDA:INR 1,871 in Q4 FY26, up from INR 1,748 in Q4 FY25.
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Full Year Revenue:INR 3,776 crores in FY26, up from INR 3,163 crores in FY25.
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Full Year EBITDA (excluding exceptional items):INR 955 crores in FY26, up from INR 589 crores in FY25.
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Full Year Profit After Tax:INR 390 crores in FY26, up from INR 169 crores in FY25.
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Full Year Per Tonne EBITDA:INR 1,738 in FY26, up from INR 1,245 in FY25.
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Release Date: May 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Star Cement Ltd ( NSE:STARCEMENT ) reported a significant increase in cement production, reaching 16.45 lakh tonnes in Q4 FY26 compared to 14.79 lakh tonnes in the same quarter last year.
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The company achieved a notable rise in total revenue for the quarter, amounting to INR1,174 crores, up from INR1,052 crores in the previous year.
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EBITDA excluding exceptional items increased to INR324 crores in Q4 FY26 from INR268 crores in the same period last year.
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Profit after tax for the quarter improved to INR147 crores, compared to INR123 crores in the previous year.
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Star Cement Ltd ( NSE:STARCEMENT ) plans a 10% to 12% growth in cement volumes for FY27, indicating a positive outlook for the upcoming year.
Negative Points
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The demand was sluggish in April due to elections in Assam and West Bengal, impacting sales.
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Subsidies are expected to reduce by INR40 crores to INR50 crores in FY27 compared to FY26, potentially affecting profitability.
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The company anticipates an increase in fuel costs due to coal shortages and increased diesel prices, which may impact margins.
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CapEx guidance for FY27 has been adjusted to INR600 crores to INR700 crores, indicating potential delays in project timelines.
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There is a risk of increased competition in the Northeast market as other major players like Shree Cement and Ambuja Cement plan to enter the region.
Q & A Highlights
Q: Congratulations on achieving the upper end of the volume guidance for FY26. What is the volume growth guidance for FY27? A: We are expecting a 10% to 12% growth in volumes for FY27, building on the 5.3 million tonnes achieved in FY26. However, the demand was sluggish in April due to elections in Assam and West Bengal, but we anticipate a pickup in May.
Q: Can you provide insights on the expected incentives for FY27, given the reduction in GST rates? A: The overall subsidies in FY27 are expected to reduce by about INR40 crores to INR50 crores compared to FY26. We estimate the subsidies to be around INR145 crores to INR150 crores for the coming year.
Q: Are you maintaining your CapEx guidance for FY27 and FY28? A: Yes, we are sticking to our CapEx guidance. For FY27, we estimate around INR600 crores to INR700 crores, and for FY28, approximately INR1,500 crores. We are in the process of acquiring land and obtaining approvals for our projects in Haryana and Bihar.
Q: How is Star Cement managing the impact of increasing fuel costs? A: We expect an increase in fuel costs due to a shortage of coal and increased prices. This is primarily because railway rakes have been diverted to power plants. We anticipate a short-term increase of about INR0.10 to INR0.15 per GCV cost in coal, which should normalize by quarter three or four.
Q: What is the strategy for the upcoming Bihar grinding unit, and how will it affect logistics and costs? A: The Bihar grinding unit is expected to be operational in about two years. Clinker will be transported from Meghalaya to Bihar via our Silchar unit, which has a railway siding. We are optimizing logistics to manage costs and have applied for subsidies in Bihar to offset incremental freight costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
