Sagar Cements falls 4% after Q2 results; weak QoQ numbers weigh on stock

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Sagar Cements share price today: Shares of Telangana-based cement manufacturer Sagar Cements fell nearly 4 per cent to hit an intraday low of ₹232.9 on the NSE after the company reported weak performance in the September 2025 quarter (Q2FY26). 

 

At 11:35 AM, the Sagar Cements stock was trading at ₹233.2, down 3.2 per cent compared to the previous session's close of ₹242.2 on the NSE. In comparison, the benchmark NSE Nifty50 was trading 81.3 points lower at 25,817 levels. The company's total market capitalisation stood at ₹3,084 crore. The stock's 52-week high stood at ₹299.4 and 52-week low stood at ₹168.

Sagar Cements Q2 results

In the September 2025 quarter, Sagar Cements reported consolidated revenue from operations of ₹601.86 crore, up 27 per cent from ₹475.12 crore in the year-ago period. Its operating earnings before interest, tax, depreciation and amortisation (Ebitda) grew 158 per cent to ₹51.33 crore compared to ₹19.33 crore in the corresponding quarter of the previous fiscal. The company's loss after tax stood at ₹44.17 crore in Q2FY26 against ₹56.98 crore in the year-ago period. 

 

However, on a quarter-on-quarter (QoQ) basis, the company reported weak performance. Its revenue from operations fell around 10 per cent from ₹670.66 crore in Q2FY26. Operating Ebitda declined 58 per cent from ₹121.45 crore. The company has posted a profit after tax (PAT) of ₹74.9 crore in the previous quarter. 

 

The weak sequential performance during the quarter was primarily attributed to plant shutdowns and higher employee-related costs.

 

"During Q2 FY26, the kiln at the Dachepalli plant was shut down for the commissioning of a new preheater, while the kiln at the Mattampally plant underwent a maintenance shutdown in September 2025. These shutdowns led to a reduction in clinker stocks, thereby impacting profitability for Q2FY26," the company said in a statement. 

 

Revenue from Operations was lower during the current quarter due to volume reduction by 5 per cent on a sequential Q-o-Q basis, it added.

 

Additionally, during Q2FY26, the company completed the employee appraisal process for FY26, effective from April 1, 2025. This resulted in an increase in employee expenses during the quarter.

 

"We have maintained our growth momentum in Q2, with significant volume growth on a year-on-year basis, despite the seasonal impact of the monsoon. As expected, realisations softened during the quarter; however, the overall operating environment remained stable with input prices continuing to be benign," said Sreekanth Reddy, joint managing director at Sagar Cements. 

 

With the monsoon season now behind us, the company expects demand momentum to pick up in H2, driven by ongoing growth in infrastructure, housing, and construction activities. For FY26, the company anticipates overall sales volumes to be around 6 million MT, he added.