Andhra Cements narrows September-quarter loss to Rs 28.35 crore

Andhra Cements Limited narrowed its net loss to Rs 28.35 crore for the quarter ended September 30, 2026, from Rs 41.92 crore a year earlier. Revenue from operations rose to Rs 165.98 crore from Rs 77.85 crore, while a negative Rs 21.54 crore inventory-change line partly offset higher operating and finance costs.

How did Andhra Cements perform in the September quarter?

Andhra Cements reported a net loss of Rs 28.35 crore in the September 2026 quarter, compared with Rs 41.92 crore in the September 2025 quarter and Rs 35.93 crore in the June 2026 quarter. Revenue from operations increased by Rs 88.13 crore year on year to Rs 165.98 crore, while loss before tax declined by Rs 4.26 crore to Rs 37.66 crore.

Other income was Rs 97 lakh in the September 2026 quarter, against Rs 59 lakh a year earlier, taking total income to Rs 166.95 crore. Total expenses rose by Rs 84.25 crore from the September 2025 quarter, so expenses remained Rs 37.66 crore above total income before the tax credit.

Basic and diluted loss per share was Rs 3.08 in the September 2026 quarter, compared with Rs 4.55 in the September 2025 quarter and Rs 3.90 in the June 2026 quarter. The September-quarter net result included a deferred-tax credit of Rs 9.31 crore, whereas the comparable quarter a year earlier reported no current or deferred tax item.

Why did Andhra Cements' net loss narrow despite higher expenses?

Andhra Cements' net loss narrowed because the inventory-change line turned negative and the quarter included a deferred-tax credit, alongside higher revenue. Changes in inventories of finished goods and work-in-progress were negative Rs 21.54 crore in the September 2026 quarter, compared with a positive expense of Rs 33.16 crore in the September 2025 quarter.

That inventory-change line moved by Rs 54.70 crore year on year, while total expenses increased to Rs 204.61 crore from Rs 120.36 crore. The reported loss before tax nevertheless narrowed to Rs 37.66 crore from Rs 41.92 crore, before the Rs 9.31 crore deferred-tax credit reduced the reported net loss to Rs 28.35 crore.

Andhra Cements said its recognition of deferred-tax assets is based on projected future taxable income, which it said provides convincing evidence that taxable profits will be available to use carried-forward business losses, unabsorbed depreciation and unused tax credits. The company had opted in the previous year to taxation under Section 115BAA of the Income-tax Act, 1961, and remeasured deferred-tax assets and liabilities using expected applicable rates.

Which Andhra Cements costs increased in the September quarter?

Andhra Cements recorded higher power and fuel, freight, materials and finance costs during the September 2026 quarter. Power and fuel expense rose to Rs 85.26 crore from Rs 9.83 crore, freight and forwarding expense increased to Rs 39.47 crore from Rs 14.72 crore, and cost of materials consumed rose to Rs 27.06 crore from Rs 6.59 crore.

Those three cost lines increased by a combined Rs 120.65 crore from the September 2025 quarter. Finance costs increased to Rs 31.79 crore from Rs 20.91 crore, while depreciation and amortisation rose to Rs 21.06 crore from Rs 17.12 crore, consistent with total expenses rising to Rs 204.61 crore.

Employee-benefit expense declined to Rs 4.38 crore from Rs 4.56 crore, while other expenses increased to Rs 17.13 crore from Rs 13.47 crore. During the September 2026 quarter, Andhra Cements reversed a Mineral Bearing Lands cess provision of Rs 118.04 lakh and recognised the credit within other expenses after management's assessment, supported by an external legal opinion, concluded that the liability no longer represented a present obligation.

What do Andhra Cements' half-year cash flow and balance sheet show?

Andhra Cements generated net cash from operating activities of Rs 65.22 crore in the six months ended September 30, 2026, compared with Rs 1.99 crore in the corresponding 2025 period. Operating profit before working-capital changes rose to Rs 18.24 crore from Rs 2.56 crore, while inventories generated a Rs 13.33 crore working-capital inflow.

Trade receivables increased by Rs 17.36 crore in the first half, compared with an increase of Rs 15.19 crore in the corresponding 2025 period. Cash generated from operating activities was Rs 65.73 crore before Rs 51 lakh of net income-tax payments, versus Rs 2.26 crore before Rs 27 lakh of such payments a year earlier.

Investing activities used Rs 86.12 crore in the six months to September 30, 2026, 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 in the prior-year period, after interest payments of Rs 45.83 crore.

At September 30, 2026, total assets stood at Rs 1,499.96 crore, up from Rs 1,420.06 crore at March 31, 2026. Property, plant and equipment increased to Rs 1,021.01 crore from Rs 959.41 crore, while inventories fell to Rs 67.96 crore from Rs 81.29 crore and cash and cash equivalents rose to Rs 28 lakh from Rs 21 lakh.

Non-current borrowings rose to Rs 1,068.91 crore at September 30, 2026 from Rs 1,012.16 crore at March 31, 2026, and current borrowings rose to Rs 114.86 crore from Rs 102.48 crore. Combined borrowings were therefore Rs 1,183.77 crore, while total equity declined to Rs 16.50 crore from Rs 80.74 crore.

What happens next for Andhra Cements after the September results?

Andhra Cements is pursuing a proposed merger into Sagar Cement Limited under a scheme approved by its board on June 5, 2026. The scheme has an appointed date of April 1, 2026 and 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.

Andhra Cements reported one business segment, manufacture and sale of cement and cement-related products, under Indian Accounting Standard 108 on operating segments. The board approved the unaudited September 2026 quarter and half-year results on October 30, 2026, and the statutory auditors issued an unmodified conclusion on their limited review.

The filing does not disclose a revenue, cement-sales volume or profitability target for the remainder of the financial year. It does disclose that Sagar Cements Limited's shareholding in Andhra Cements fell to 75.00% from 90.00% in the previous year following offers for sale made on January 9, January 12, March 17 and March 18, 2026 to meet minimum public shareholding requirements.

Conclusion

Andhra Cements combined revenue of Rs 165.98 crore in the September 2026 quarter with a Rs 54.70 crore year-on-year movement in the inventory-change line and a Rs 9.31 crore deferred-tax credit, narrowing its net loss to Rs 28.35 crore. The result still reflected higher power and fuel, freight, material, finance and depreciation expenses, which took total expenses to Rs 204.61 crore.

The disclosed next event is the proposed merger into Sagar Cement Limited, with an appointed date of April 1, 2026 but outstanding exchange, regulatory, shareholder, creditor and tribunal approvals. The next financial disclosures will show whether first-half operating cash generation of Rs 65.22 crore is sustained while combined borrowings stood at Rs 1,183.77 crore at September 30, 2026.