Sagar Cements raises capacity to 11 MTPA with Jeerabad

What Sagar Cements announced to the BSE

Sagar Cements, the Hyderabad-based cement maker, informed the Bombay Stock Exchange that its subsidiary Sagar Cements (M) Private Limited (SCMPL) has launched and begun commercial operations of an additional 0.5 million tonnes per annum (MTPA) capacity. The unit is located at SCMPL’s cement production facility in Jeerabad, Tehsil Gandani, Dhar district, Madhya Pradesh. The disclosure was made public on June 10, 2026. The company said the commissioning increases SCMPL’s cement grinding capacity at the site. And it also lifts the group’s overall cement capacity.

Jeerabad unit start: what changes on the ground

With the new unit now active, SCMPL’s overall cement grinding capacity has increased from 1.0 MTPA to 1.5 MTPA. Sagar Cements stated that this takes the group’s total cement capacity to 11.00 MTPA. The company described the development as the effective launch and start of commercial operations, indicating the capacity is available for regular production and dispatches. The announcement ties directly to the group’s push to strengthen its presence in Central India through Madhya Pradesh.

Why the Jeerabad expansion matters for the group

The Jeerabad project is positioned by the company as part of a broader regional diversification effort. In the provided disclosures, the company noted that expanding in Madhya Pradesh should help reduce dependence on the southern region. At the same time, it also noted that the South has historically been profitable for long periods, with performance influenced by realisation changes. The Jeerabad grinding increase adds incremental volume potential within Central India. It also aligns with earlier commentary that new capacities coming up across plants should see ramp-up over time.

Status of other expansion projects mentioned

Sagar Cements said expansion projects at its Andhra Cements and Jeerabad plants were progressing “as per plan.” The company’s subsidiary Andhra Cements has commissioned a six-stage preheater at its Dachepalli plant in Andhra Pradesh. Disclosures in the provided material mention dates in late October 2025 for commissioning activity at Dachepalli, including October 23, 2025, and a commissioning after a trial run on October 27, 2025. Separately, the company indicated expectations to complete a cement factory by the end of Q1 FY27, as cited in the provided text. These updates were presented as part of a broader capacity and efficiency roadmap.

Energy and efficiency projects: waste heat recovery and solar

Beyond grinding capacity, the company has flagged multiple power-related initiatives. It expects to commission a 4.35MW waste heat recovery plant at its Gudipadu plant in Andhra Pradesh by the end of the 2026 financial year. Another disclosure mentions that the board of SCMPL approved, alongside the Jeerabad grinding expansion, a green energy initiative to set up a 6MW solar power plant. The capex for the Jeerabad grinding expansion and the solar project was cited at around Rs 140 crores. The company has also highlighted self-reliance in power generation, stating a total power generation capacity of 61.5MW across operations.

Capacity expansion and commissioning history cited

The provided material also summarises a series of projects commissioned in FY 2024-25. These include a 3.0 MTPA plant at Mattampally, a 1.25 MTPA plant at Gudipadu, a 1.5 MTPA plant at Bayyavaram, a 1.0 MTPA plant at Jeerabad, and a 1.5 MTPA grinding unit at Jaipur. The company also referenced its operational footprint across locations, including recently commissioned facilities at Jeerabad (Madhya Pradesh) and Jajpur (Odisha). In addition, the material states Sagar Cements expanded production capacity from 5.8 MTPA to 10.50 MTPA in FY23. Another line describes installed production capacity as 10.85 MTPA, reflecting multiple capacity figures cited across disclosures.

Investment plans and the Andhra Cement modernisation roadmap

The provided text also includes planned spending at Andhra Cement. It mentions an intention to invest Rs 470 crores for modernisation and upgradation of capacities, with the expansion at Dachepalli expected to be completed by end of FY26. Under the plan, clinker capacity is proposed to rise from 1.85 MnT to 2.31 MnT, and cement capacity from 2.25 MnT to 3.00 MnT. The same material notes that Rs 75 crores was spent during FY25, with the balance to be spent in FY26 and FY27. Separately, the company’s longer-term commentary includes a goal to augment capacity to 20 MTPA by 2035.

Market impact: what the additional capacity signals

The June 10, 2026 commissioning update adds a clear, near-term data point on capacity availability. A higher grinding capacity at Jeerabad increases the group’s ability to serve demand in Madhya Pradesh and nearby markets, a point also reflected in the material stating Jeerabad would cater to Madhya Pradesh, Gujarat and Maharashtra. The company has described new greenfield expansions in Madhya Pradesh and Odisha as steps to address rising demand for building materials in Central and Eastern India. It has also forecast full-year sales volumes of 6Mt, as per the provided text. However, the disclosures do not provide a stock price reaction or a quantified impact on margins, costs, or realisations tied to this specific commissioning.

Key facts table

How to read the update alongside earlier guidance

The broader context includes multiple capacity targets and expansion plans referenced in the provided material. One disclosure states that post upgradation, the installed capacity of the Sagar Cements group will be 11.25 MTPA by end of FY2026. The June 10, 2026 BSE update, meanwhile, states group cement capacity at 11.00 MTPA following the Jeerabad grinding start. Together, these indicate the group is tracking several projects across sites and timelines. The company has repeatedly framed these projects as part of geographic diversification beyond its traditional southern base.

Conclusion

Sagar Cements’ June 10, 2026 filing confirms commercial operations of an added 0.5 MTPA capacity at Jeerabad, taking SCMPL’s grinding capacity to 1.5 MTPA and group cement capacity to 11.00 MTPA. The update fits within a wider set of projects spanning Andhra Pradesh and Madhya Pradesh, including waste heat recovery and proposed solar capacity. The next milestones referenced in the provided material include commissioning of the 4.35MW waste heat recovery unit at Gudipadu by end FY26 and completion targets tied to ongoing plant expansions.