Sanghi Industries Q3 FY26 Results: Turnaround Signs Emerge

Introduction to Q3 FY26 Performance

Sanghi Industries Limited has released its unaudited financial results for the third quarter and nine months ended December 31, 2025. The announcement, made on February 2, 2026, provides a snapshot of the company's financial health. Alongside the financial statements, the company also published the transcript of its earnings conference call held on January 30, 2026, offering deeper insights into its operational strategy and future outlook under the new management of the Adani Group. The results were approved by the Board of Directors on January 31, 2026, after a review by the Audit Committee.

Financial Performance Breakdown

The standalone and consolidated financial figures for the quarter were modest. The company reported a Total Income from Operations of ₹0.97 crore. Profit After Tax (PAT) for the period stood at ₹0.40 crore. However, the Total Comprehensive Income showed a loss of ₹28.14 crore for both standalone and consolidated statements. The basic and diluted Earnings Per Share (EPS) was reported at ₹0.22. These figures represent the company's performance before the full impact of the ongoing operational integration and strategic changes are reflected.

Operational Overhaul Under New Management

The earnings call, led by the parent company's management, provided significant details about the operational turnaround underway at Sanghi Industries. Vinod Bahety, CEO of the cement business, highlighted that a "substantial overhauling of the assets of Sanghi" has been initiated. This strategic intervention is aimed at improving efficiency, increasing output, and integrating Sanghi into the broader Adani cement platform, which includes Ambuja Cements and ACC.

Capacity Utilization and Efficiency Gains

A key highlight from the management's commentary was the marked improvement in capacity utilization at Sanghi's facilities. According to the CEO, Sanghi's operations showed significant progress, with the exit rate for December 2025 reaching almost 80% for clinker and 65% for cement. This represents a meaningful improvement and signals early success from the integration and optimization playbook being executed by the new management. The focus is on ramping up these acquired assets to achieve utilization levels closer to 80% on a sustained basis, which would significantly boost production volumes and operational profitability.

Key Insights from the Earnings Call

The management's discussion underscored a clear strategy focused on leveraging the combined strength of the group. The proposed amalgamation of ACC with Ambuja Cements, which now includes assets like Sanghi, is part of creating a unified "one cement platform." This platform aims to accelerate growth, expand EBITDA margins, and enhance capital efficiency over the next 24 to 36 months. The strategy involves improving logistics density, strengthening operational excellence, and driving long-term value creation for shareholders.

Management's Strategic Focus

The broader strategy for the cement business, including Sanghi Industries, revolves around two core pillars: market leadership and cost leadership. The management is pushing for a higher share of premium cement products in its sales mix, which accounted for 35% of trade sales for the group. There is also a concerted effort to regain market share in the high-margin trade segment, with a target ratio of 75% trade to 25% non-trade sales. On the cost side, initiatives are underway to reduce logistics, power, and fuel expenses, with an increasing share of green power in the energy mix.

Industry Outlook

The management expressed a positive outlook for the Indian cement industry. They anticipate that cement demand will close FY26 with approximately 8% growth, driven by continued government spending on infrastructure, sustained housing demand, and a recovery in rural construction. The pricing environment also showed signs of firming up in January, with price hikes holding steady, which is a positive departure from previous years. This favorable operating environment is expected to support the company's volume growth and realization improvement goals in the upcoming quarters.

Conclusion

While Sanghi Industries' standalone Q3 FY26 financial results appear modest, the operational data and management commentary paint a picture of a company in transition. The strategic overhaul initiated by the Adani Group is already yielding tangible results in the form of higher capacity utilization. As Sanghi becomes more deeply integrated into the Adani cement ecosystem, the benefits of scale, operational synergies, and a focused market strategy are expected to drive a significant performance improvement in the coming quarters.