Saurashtra Cement Q1 FY27: Profit down 45% on costs

Results approved by the board on August 6, 2026

Saurashtra Cement reported a sharp year-on-year decline in profitability for the first quarter of FY27, even as revenue from operations increased. The company said the Board of Directors approved the unaudited financial results on August 6, 2026. The quarter under review ended on June 30, 2026. The results pointed to rising operational costs as a key reason for margin pressure during the period. The company disclosed both standalone and consolidated performance.

Key headline numbers: revenue up, profit down

Standalone revenue from operations rose to ₹456.75 crore in Q1 FY27 from ₹423.57 crore in Q1 FY26, a growth of 7.8% year-on-year. But standalone net profit fell to ₹9.20 crore from ₹16.79 crore, a decline of 45.2% year-on-year. The earnings impact was visible in per-share metrics too, with basic EPS at ₹0.83 versus ₹1.51 a year ago. The company’s financial snapshot underlined how cost inflation can outweigh top-line expansion in a quarter.

Operating performance: EBITDA drops and margins compress

Operational profitability weakened sharply during the quarter. Standalone EBITDA fell to ₹20.8 crore from ₹34.7 crore, a 40% year-on-year decline. This led to an EBITDA margin contraction to 4.55% from 8.2%. The company attributed the margin squeeze to higher operational costs, which compressed profitability despite higher revenue.

Standalone vs consolidated: profit pressure visible across reporting

The decline was not limited to standalone performance. Consolidated net profit came in at ₹9.13 crore compared with ₹16.86 crore in the year-ago period. The consolidated numbers reinforced the same theme of weaker profitability compared with Q1 FY26. The company’s reporting indicated that margin pressure was a group-level issue during the quarter.

Segment mix: cement dominates, paints remains smaller

Saurashtra Cement reported segment-wise revenue across Cement and cement related products and Paints. Cement remained the dominant contributor, while paints contributed a smaller share of revenue. Segment revenue rose year-on-year in both segments for the quarter ended June 30, 2026.

Financial snapshot table: Q1 FY27 vs Q1 FY26

The company’s disclosed metrics show a clear divergence between revenue growth and profitability. While revenue rose close to 8%, net profit and EPS fell by roughly 45%. EBITDA fell by about 40%, and margins compressed sharply.

Assets and liabilities: segment disclosures as of June 30, 2026

The company also disclosed segment assets and liabilities as of June 30, 2026. Cement and cement related products reported total assets of ₹1,552.98 crore and total liabilities of ₹649.05 crore. Paints reported total assets of ₹98.33 crore and total liabilities of ₹31.70 crore. These disclosures provide context on scale differences between the two segments.

Trading window and compliance update

Separately, the company disclosed that its trading window for equity shares would close on July 1, 2026 under SEBI insider trading regulations and the company’s code. It was to reopen after 48 hours following the release of the unaudited Q1 results for the quarter ending June 30, 2026. This aligns with common compliance practice around price-sensitive information.

Market snapshot: share price and what investors are tracking

The update came alongside a reported market snapshot of the stock price. Saurashtra Cement’s share price was stated as ₹60.38 on NSE and ₹60.37 on BSE as of July 31, 2026. For investors, the key variables in this quarter’s outcome were the extent of cost pressures and the resulting margin compression. The headline numbers show that revenue growth did not translate into earnings growth in Q1 FY27.

Why the quarter matters

The Q1 FY27 results highlight a period where operating costs materially affected profitability. With EBITDA margin dropping from 8.2% to 4.55%, the quarter reflects a sharp reset in operating leverage despite higher sales. The segment split also shows cement remains the primary revenue driver, with paints contributing a smaller portion of the top line. The next key datapoints investors typically look for are updated cost trends and any change in operating profitability in subsequent quarters, based on future disclosures.