Star Cement Ltd (STARCEMENT)

📊 Quarterly Results (₹ Cr)

Revenue declined sequentially from ₹1,174 crore in Q4 FY26 to ₹943 crore in Q1 FY27, reflecting seasonal softness and possible consolidation in the Northeast market. However, operating performance stabilized with OPM holding at 10.9% in Q1 FY27 compared to 18.4% in the prior quarter, indicating cost normalization after peak margins. Net profit fell to ₹74 crore from ₹147 crore, but EPS remained flat at ₹1.85, suggesting no dilution. The sharp drop in consolidated net profit (₹(93.67) lakhs) in Q1 FY26 was due to subsidiary adjustments and tax regime changes, not core operational weakness. Sequential trends show revenue stabilization and margin resilience despite macro headwinds.

🔮 Management Outlook & What's Next

Management expects 8-9% volume growth in FY27, driven by infrastructure demand and Northeast expansion. Capex of ₹2,700-2,900 crore is underway for new grinding units in Rajasthan and Haryana, with ₹93 crore spent in Q1 FY27 and ₹500 crore planned for the year. Non-cement revenue is targeted at ₹150 crore by Q4 FY27 on an ARR basis, supported by Building Solutions. Management anticipates subsidy-related EBITDA headwinds to ease from Q3 FY27. The company remains focused on cost discipline, with fuel costs estimated at ₹1.55/kg in Q2 and operational savings targeted at ₹150 per ton. The AGM on September 25, 2026, will be pivotal for shareholder approval of director reappointments and governance continuity.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

The balance sheet shows a stable capital structure with total assets growing from ₹4,107 crore in March 2025 to ₹4,647 crore in March 2026, driven by equity and reserves. Borrowings increased to ₹603 crore from ₹390 crore, indicating modest leverage buildup, likely for capex funding. Equity remains flat at ₹40 crore, but reserves grew to ₹3,151 crore, reflecting accumulated profits and revaluations. The company is investing in expansion while maintaining a conservative debt profile (D/E of 0.14), suggesting a phased and capital-efficient rollout of new assets.

💰 Cash Flow Statement (₹ Cr)

👥 Shareholding Pattern

Promoter holding remains stable at 58.1%, indicating confidence in long-term control. However, institutional interest is diverging: FII shareholding declined slightly from 2.96% in Q2 FY26 to 2.29% in Q1 FY27, while DII increased from 4.38% to 2.38%. The number of public shareholders rose to 62,529 from 61,167, showing retail participation. The modest rise in DII and retail base may reflect growing interest among mutual funds and individual investors, though foreign ownership remains low. No significant dilution or pledging signals are evident.

⚖️ Peer Comparison — Cement

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Subsidy-related EBITDA headwinds of ₹40 crore in Q1 FY27, with subsidy receivables of ₹40 crore against ₹130 crore outstanding, creating cash flow uncertainty. 2. Policy delays in West Bengal grinding unit review could stall expansion plans. 3. Margin pressure from lower OPM (10.9% in Q1 FY27 vs 18.4% in Q4 FY26) amid competitive pricing and input cost volatility. 4. Dependence on Northeast market (8.71 million tons) exposes the company to regional demand fluctuations and infrastructure cycle risks.

📋 Recent Filings

• 🟡 Board Meeting2026-09-25Star Cement held its 25th AGM on 25 September 2026 via video conference, approving the 2025-26 audited financials, confirming two interim dividends of…
• 🟡 voting results2026-09-25Star Cement Ltd shareholders approved all 12 resolutions at the 25th AGM on 25 September 2026 via remote e-voting and video conference. The meeting co…
• 🟡 Board Meeting2026-09-25Star Cement announced the re-appointment of four directors—Prem Kumar Bhajanka, Sajjan Bhajanka, Sanjay Agarwal, and Pankaj Kejriwal—to their respecti…
• Announcement2026-09-24Star Cement Ltd announced that its trading window will close on 1 October 2026 for all directors, officers, designated persons and their immediate rel…
• Announcement2026-09-23Star Cement Limited announced that its management will virtually attend Arihant Capital's Bharat Connect Conference – Rising Stars 2026 on September 2…
• 🔴 Announcement2026-09-09Star Cement Ltd announced it will attend institutional investor and analyst meetings in Mumbai on September 16-17, 2026, as part of a non-deal roadsho…
• 🔴 annual report2026-09-04Star Cement Ltd reported a 19% YoY revenue rise to D3,776 Crore in FY25-26, with EBITDA margin expanding to 24.48% and PAT surging 131% to D390 Crore,…
• 🔴 annual report2026-09-03Star Cement Ltd reported FY 2025-26 revenue of ₹3,776 crore, up 19% YoY, with EBITDA margin expanding to 24.48% and PAT surging 131% to ₹390 crore. Th…
• 🟡 Board Meeting2026-09-03The filing announces the 25th Annual General Meeting (AGM) of Star Cement Ltd scheduled for 25th September 2026. It includes detailed disclosures on r…
• 🔴 annual report2026-09-03Star Cement disclosed that shareholders without registered email IDs will receive a letter with a web link and QR code to access the FY 2025-26 Annual…

🧠 Analyst's Read

Star Cement is executing a turnaround anchored in cost optimization, non-cement diversification, and capex-led expansion, but near-term profitability is being weighed down by subsidy losses and sequential revenue softness. Investors should monitor the September AGM outcome, subsidy recovery timelines, and volume trends in the Northeast as early indicators of execution momentum.

Based on filing content and financial data. Not a recommendation.