Andhra Cements revenue doubles but quarterly loss remains

Andhra Cements Limited more than doubled revenue from operations to Rs 165.98 crore in the quarter ended September 30, 2026, from Rs 77.85 crore a year earlier, but remained loss-making. Total expenses reached Rs 204.61 crore, exceeding total income of Rs 166.95 crore, while the net loss was Rs 28.35 crore after a deferred-tax credit.

What were Andhra Cements’ September-quarter results?

Andhra Cements reported Rs 165.98 crore of revenue from operations for the quarter ended September 30, 2026, compared with Rs 77.85 crore in the corresponding quarter of 2025. Other income was Rs 97 lakh, against Rs 59 lakh, taking total income to Rs 166.95 crore from Rs 78.44 crore.

The loss before tax narrowed to Rs 37.66 crore from Rs 41.92 crore a year earlier. A deferred-tax credit of Rs 9.31 crore reduced the reported net loss to Rs 28.35 crore, compared with a net loss of Rs 41.92 crore in the September 2025 quarter, when the results statement recorded no tax item.

The sequential comparison also showed higher sales and a narrower loss. Revenue increased from Rs 142.17 crore in the quarter ended June 30, 2026, while the net loss narrowed from Rs 35.93 crore. Basic loss per share, which the filing says is not annualised, improved to Rs 3.08 from Rs 3.90 in the preceding quarter.

Why did Andhra Cements remain loss-making despite higher revenue?

Andhra Cements remained loss-making because September-quarter expenses of Rs 204.61 crore were Rs 37.66 crore above total income of Rs 166.95 crore. That gap was the reported loss before tax, indicating that higher sales did not cover operating, finance and depreciation charges.

Power and fuel was the largest stated expense at Rs 85.26 crore, up from Rs 9.83 crore a year earlier. Freight and forwarding expense rose to Rs 39.47 crore from Rs 14.72 crore, finance costs increased to Rs 31.79 crore from Rs 20.91 crore, and depreciation and amortisation rose to Rs 21.06 crore from Rs 17.12 crore.

Material consumption increased to Rs 27.06 crore from Rs 6.59 crore, while employee-benefit expense declined to Rs 4.36 crore from Rs 4.56 crore. Changes in inventories reduced expenses by Rs 21.54 crore in the latest quarter, compared with an expense of Rs 33.16 crore in the previous-year quarter, but this did not offset the increase in other cost lines.

Other expenses rose to Rs 17.11 crore from Rs 13.47 crore. Power and fuel, freight, finance costs and depreciation together amounted to Rs 177.58 crore in the September 2026 quarter, compared with Rs 64.58 crore in the September 2025 quarter.

How did Andhra Cements perform in the first half?

Andhra Cements recorded revenue from operations of Rs 308.15 crore in the six months ended September 30, 2026, up from Rs 177.38 crore in the same period of 2025. Total income increased to Rs 310.31 crore from Rs 179.02 crore, while total expenses rose to Rs 395.74 crore from Rs 250.56 crore.

The first-half loss before tax widened to Rs 85.43 crore from Rs 71.54 crore a year earlier. After a deferred-tax credit of Rs 21.15 crore, the net loss was Rs 64.26 crore, compared with Rs 71.54 crore in the comparable previous-year period.

Power and fuel expense for the six-month period rose to Rs 134.40 crore from Rs 51.02 crore, while freight and forwarding expense increased to Rs 73.02 crore from Rs 31.60 crore. Finance costs rose to Rs 63.73 crore from Rs 41.45 crore, and depreciation and amortisation increased to Rs 41.82 crore from Rs 33.89 crore.

Andhra Cements identified manufacture and sale of cement and cement-related products as its single reportable business segment under Indian Accounting Standard 108, or Ind AS 108. The filing therefore provides no separate product, geography or operating-unit revenue split for the Rs 308.15 crore of first-half operations.

What changed in Andhra Cements’ balance sheet?

Andhra Cements’ total assets increased to Rs 1,499.96 crore at September 30, 2026, from Rs 1,420.06 crore at March 31, 2026. Property, plant and equipment rose to Rs 1,021.01 crore from Rs 959.41 crore, while deferred-tax assets increased to Rs 240.03 crore from Rs 218.90 crore.

Total borrowings, combining current and non-current amounts, rose to Rs 1,183.77 crore at September 30 from Rs 1,114.64 crore at March 31. Non-current borrowings were Rs 1,068.91 crore and current borrowings were Rs 114.86 crore, compared with Rs 1,012.16 crore and Rs 102.48 crore, respectively, at the financial-year end.

Equity declined to Rs 16.50 crore from Rs 80.74 crore over the same period. Equity share capital remained Rs 92.17 crore, while other equity moved to negative Rs 75.67 crore from negative Rs 11.43 crore, alongside the reported first-half net loss of Rs 64.26 crore.

Current assets were Rs 193.68 crore at September 30, compared with Rs 189.33 crore at March 31. Trade receivables increased to Rs 63.76 crore from Rs 46.40 crore, inventories declined to Rs 67.96 crore from Rs 81.29 crore, and cash and cash equivalents rose by Rs 7 lakh to Rs 28 lakh.

How did Andhra Cements fund its cash flows and what is planned next?

Andhra Cements generated Rs 65.22 crore from operating activities in the six months ended September 30, 2026, compared with Rs 1.99 crore in the prior-year period. The operating inflow followed a Rs 85.43 crore loss before tax, with Rs 41.82 crore of depreciation and amortisation and Rs 63.73 crore of finance costs added back under the indirect cash-flow method.

Investing activities used Rs 86.12 crore, including Rs 87.06 crore spent on property, plant and equipment, capital work-in-progress, capital advances and capital creditors. Financing activities generated Rs 20.97 crore, compared with Rs 133.18 crore a year earlier, as Rs 93.02 crore of non-current borrowing proceeds exceeded Rs 27.04 crore of repayments and Rs 45.83 crore of interest paid.

The board approved a proposed scheme on June 5, 2026 under which Andhra Cements would merge into parent company Sagar Cements Limited, with an appointed date of April 1, 2026. The scheme remains subject to approvals from stock exchanges, the Securities and Exchange Board of India, shareholders, creditors, the National Company Law Tribunal and other required authorities.

Conclusion

Andhra Cements’ September-quarter results show that revenue growth to Rs 165.98 crore from Rs 77.85 crore narrowed the quarterly net loss to Rs 28.35 crore from Rs 41.92 crore, but did not eliminate it. Expenses remained above income, while borrowings increased by Rs 69.13 crore from the March 2026 position and cash and cash equivalents ended at Rs 28 lakh.

The next disclosed milestone is the proposed merger into Sagar Cements Limited, approved by the board on June 5, 2026 with an appointed date of April 1, 2026. Its progress depends on the stated stock-exchange, regulatory, shareholder, creditor and tribunal approvals, while future filings will show whether revenue growth and operating cash generation continue alongside the higher cost base.