India Cements Q2 FY26: Profit, ₹2,014 Cr Capex

Key takeaways from the September quarter

India Cements Ltd reported a return to profit in Q2 FY26, aided by lower year-on-year costs and an improvement in operating metrics. The company posted consolidated net profit of ₹8.81 crore for the September quarter. This marked a sharp turnaround from a net loss of ₹338.72 crore in Q2 FY25. The board also approved an investment plan of ₹2,014 crore, split between modernisation and capacity expansion.

At the same time, the quarter presented mixed signals in the top line depending on the metric used. Revenue from operations (net sales) increased year-on-year, while total income (which includes other income) declined year-on-year. Shares of India Cements closed at ₹391.75 on BSE, down 0.58% on the day the results were reported.

Revenue picture: net sales up, total income down YoY

For Q2 FY26, revenue from operations stood at ₹1,117.04 crore. This was up 9.31% year-on-year from ₹1,021.84 crore in Q2 FY25. Another data point in the same update also described net sales at ₹1,117.04 crore as up 9.01% quarter-on-quarter and 9.32% year-on-year, indicating a modest recovery.

However, total income (including other income) was reported at ₹1,146.04 crore in Q2 FY26. This was up 10.9% quarter-on-quarter from ₹1,033.85 crore in Q1 FY26, but down 3.8% year-on-year from ₹1,190.75 crore in Q2 FY25. A separate filing also stated total income was down 2.94% year-on-year at ₹1,146.04 crore. The difference between revenue from operations and total income matters because it can shift the narrative when other income is volatile.

Cost line: sequential rise, sharp year-on-year decline

Total expenses for Q2 FY26 were ₹1,135.64 crore. This was down 13.5% year-on-year, and the expenses line was also described as declining 13.51% to ₹1,135.65 crore from ₹1,313.02 crore last year.

On a quarter-on-quarter basis, operating expenses were reported at ₹1,135.64 crore, up 9.0% from ₹1,042.18 crore in Q1 FY26. That sequential increase explains why the quarter was not a straight-line improvement despite the return to profitability. The year-on-year decline was much stronger: operating expenses were said to be down 14.2% from ₹1,322.98 crore in Q2 FY25.

Profit turnaround: from heavy losses to modest profit

The quarter’s headline was the swing into profit. Profit before tax (PBT) was ₹4.39 crore in Q2 FY26, compared with a loss of ₹132.10 crore in Q1 FY26 and a loss of ₹355.47 crore in Q2 FY25. Profit after tax (PAT) was ₹8.81 crore, versus a loss of ₹132.90 crore in the previous quarter and a loss of ₹338.72 crore in the same quarter last year.

Earnings per share (EPS) improved to ₹0.28 in Q2 FY26. This compared with an EPS loss of ₹10.94 in Q2 FY25, based on the numbers provided. The PAT margin for Q2 FY26 was stated at 0.79%, improving from -33.19% in Q2 FY25, but still reflecting thin profitability.

Operating performance: margin recovery, but sequential softening

Operationally, the company reported a strong year-on-year rebound. Operating margin (excluding other income) improved to 7.26% in Q2 FY26 from -15.93% in Q2 FY25. Operating EBITDA was reported at ₹95 crore, compared to a loss of ₹162 crore in the previous year.

But sequentially, the same dataset pointed to some softening. The operating margin was cited at 8.12% in Q1 FY26 versus 7.26% in Q2 FY26. PBDIT (excluding other income) stood at ₹81.13 crore in Q2 FY26, slightly lower than ₹83.19 crore in Q1 FY26, suggesting the pace of improvement moderated.

Volumes and utilisation: improvement in South India

India Cements reported domestic cement sales volume of 2.44 million tonnes in Q2 FY26, up 11.9% quarter-on-quarter. Average capacity utilisation was 65% for the quarter.

The company operates primarily in South India, where demand conditions were described as stable. The update also linked cost optimisation in fuel, logistics, and raw material procurement to improved operating performance during the quarter.

Board-approved capex: ₹2,014 crore for modernisation and expansion

Alongside earnings, the board approved an investment plan of ₹2,014 crore. This includes ₹1,574 crore towards modernisation and ₹440 crore for a proposed capacity addition of 2.80 million tonnes. The company said the expansion will be funded through a mix of debt and internal accrual.

The stated rationale for the capex was to improve process efficiency, sustainability, and competitiveness, especially under the ownership structure following its acquisition by UltraTech Cement. The investment decision is a key development for investors tracking how the business changes operationally after the ownership transition.

Balance sheet and selected financial indicators mentioned

The data also cited changes in asset and liability items. Fixed assets increased to ₹11,633.75 crore in FY25 from ₹6,868.52 crore in FY24. Current assets declined to ₹1,591.14 crore from ₹2,738.51 crore, while current liabilities fell to ₹1,250.48 crore from ₹2,796.76 crore.

In a peer comparison note, India Cements’ ROE was stated at -5.65%. The debt-to-equity ratio was cited at 0.10x, and the price-to-book ratio at 1.20x, alongside peer numbers including JK Lakshmi Cement (ROE 8.71%), Star Cement (ROE 5.87%), and price-to-book references for JSW Cement (7.23x), JK Lakshmi Cement (3.02x), and Star Cement (3.65x).

Market reaction and what investors typically track next

On the day referenced, India Cements shares settled at ₹391.75 on BSE, down 0.58% from the previous close. The earnings showed a meaningful year-on-year turnaround from deep losses, supported by lower expenses and better operating metrics.

At the same time, the quarter included signs that sequential momentum in margins may have cooled, with the operating margin moving from 8.12% in Q1 FY26 to 7.26% in Q2 FY26 as per the numbers cited. Investors typically track whether cost controls hold through the next few quarters, and how the approved modernisation and capacity addition translate into operating efficiency.

Summary table: key reported numbers

Conclusion

India Cements’ Q2 FY26 result combined a return to profit with a large board-approved capex plan of ₹2,014 crore. Revenue from operations grew year-on-year, while total income declined year-on-year due to the inclusion of other income. Expenses fell sharply year-on-year but rose sequentially, and operating margin improved substantially from last year while easing versus Q1 FY26 as per the figures cited. The next key milestones, based on disclosures, are execution of the modernisation programme and the planned 2.80 million tonne capacity addition funded through a mix of debt and internal accrual.