Shree Digvijay Cement Q2 FY27: Loss as Costs Jump

Costs dominate the narrative in Q2 FY27

Shree Digvijay Cement Company Limited reported a sharp profitability reversal for the quarter ended 30 September 2026, even as revenue and volumes grew strongly. The company posted a net loss of ₹16.27 crore, compared with a net profit of ₹10.23 crore in the same quarter last year. The disclosure came through a press release signed by CEO and Managing Director Amit Arora on 23 October 2026. The company’s update highlights a familiar theme for cement makers during the quarter: higher input and logistics costs. In a separate set of results from the same earnings season, Shree Cement also reported margin pressure linked to power and fuel costs. Together, the two updates underline how cost inflation can quickly offset volume-led revenue gains.

Shree Digvijay Cement swings to loss

For Q2 FY27, Shree Digvijay Cement’s revenue from operations rose 73% year-on-year to ₹279.31 crore from ₹161.35 crore. But the operating outcome deteriorated, with EBITDA turning negative at ₹1.30 crore, compared with a positive ₹20.48 crore a year earlier. The company’s net result moved in the same direction, swinging to a loss for the quarter. The press release linked the performance primarily to cost escalation, rather than any drop in demand. A separate “market snapshot” in the provided text also referenced an alert figure of a Q2 net loss of ₹16.3 crore, Q2 revenue of ₹279 crore, and an EBITDA loss of ₹1.7 crore, noting these were “not independently verified.” The press release figures, reported in lakh and converted here to crore, indicate revenue of ₹279.31 crore and EBITDA loss of ₹1.30 crore.

Volumes rise sharply, supported by a new channel

Sales volumes were a key driver of the revenue increase. Shree Digvijay Cement sold 5.10 lakh tonnes in Q2, up from 2.96 lakh tonnes in the prior-year quarter. The company also disclosed that 212,549 metric tonnes of the quarter’s volume came from sales under a Brand Usage, Supply and Distributorship Agreement (BDA) with Hi-Bond Cement (India) Private Limited. There were no comparable BDA sales in the year-ago quarter, making this a meaningful incremental contributor to volumes in Q2 FY27. The volume step-up explains why revenue growth was strong even as margins came under pressure. It also signals that the company’s go-to-market mix in Q2 included a large contribution from the BDA route.

EBITDA per tonne flips negative as inflation bites

Despite higher dispatches, profitability collapsed at the operating level. EBITDA per tonne fell to a loss of ₹26, compared with a gain of ₹692 in Q2 FY26. The company attributed the deterioration to geopolitical uncertainty that disrupted global supply chains, pushing up input and logistics costs. It specifically flagged higher costs for fuel, packaging, and freight. These are cost lines that can move quickly and affect cement makers’ quarterly numbers, particularly when the pricing environment does not fully absorb the increase. In Shree Digvijay Cement’s case, the reported movement from positive EBITDA to negative EBITDA indicates that the cost surge outweighed the benefit of higher volumes.

Plant shutdown added pressure during the quarter

Shree Digvijay Cement also pointed to an annual plant shutdown during the quarter, which added pressure to performance. Such shutdowns can affect fixed-cost absorption and disrupt production schedules, especially when combined with elevated logistics and energy costs. The company’s commentary suggests the shutdown was a planned operational event, but its timing coincided with a quarter of higher input inflation. Management said the plant is now ready to meet higher demand following the shutdown, indicating that the shutdown-related headwind is not expected to extend into subsequent quarters.

H1 FY27 shows revenue growth but a profit reversal

For the six months ended 30 September 2026, Shree Digvijay Cement reported revenue of ₹616.58 crore, up from ₹357.29 crore in the prior period. However, it posted a pre-tax loss of ₹12.91 crore versus a pre-tax profit of ₹32.17 crore previously. The gap between strong top-line growth and weaker profitability mirrors the quarterly trend, suggesting cost pressures were not limited to a single month. The half-year figures reinforce the message that the period’s challenge was margin, not sales traction.

Management flags levers for margin recovery

Management commentary in the press release pointed to renewable energy expansion and a growing blended cement portfolio as levers for future margin recovery. The company also maintained confidence in its long-term prospects, citing its distribution network and supply chain capabilities. These statements frame the company’s response as a combination of cost structure improvements and product mix. However, the disclosure did not provide quantified timelines or capex numbers in the provided text, so the near-term focus remains on whether input and logistics costs normalise.

Shree Cement: profit falls sequentially as power and fuel costs rise

In a separate update, Shree Cement reported a sharp sequential decline in standalone net profit for the quarter ended 30 September 2026. Standalone net profit fell 53% to ₹205.33 crore from ₹437.99 crore in the preceding quarter, and was also lower year-on-year versus ₹277.14 crore. Revenue from operations rose 18.7% year-on-year to ₹5,107.44 crore from ₹4,303.20 crore, indicating volume growth alongside margin compression. The company’s power and fuel costs increased to ₹1,626.91 crore from ₹1,039.73 crore in the year-ago quarter, a near 57% jump as stated in the provided text. EBITDA fell to ₹955.11 crore from ₹1,275.85 crore in Q1 FY27, and operating margin declined to 19% from 23% sequentially.

Consolidated picture and earnings per share for Shree Cement

On a consolidated basis, Shree Cement’s revenue from operations rose to ₹5,896.51 crore from ₹4,761.07 crore year-on-year. Consolidated net profit attributable to owners stood at ₹261.82 crore, down from ₹308.51 crore in the year-ago period. The standalone basic earnings per share for the quarter was ₹56.91, compared with ₹76.81 in the year-ago quarter. The broader theme remains consistent with the standalone numbers: higher revenue, but profitability constrained by cost inflation, especially energy.

Key data table: Shree Digvijay Cement Q2 and H1 FY27

Key data table: Shree Cement Q2 FY27 highlights

What to watch next

For Shree Digvijay Cement, the next update investors typically track is whether EBITDA per tonne moves back into positive territory after the shutdown quarter, and whether fuel, packaging, and freight costs ease from elevated levels. The provided text also referenced scheduled earnings events for Shree Digvijay Cement, including a Q3 2027 earnings release dated 01/22/2027 and a Q4 2027 earnings release dated 04/28/2027. Separately, the text included historical context that Shree Digvijay Cement reported FY26 revenue of ₹753.16 crore versus ₹735.03 crore in FY25, with FY26 net profit of ₹24.97 crore versus ₹25.19 crore in FY25, and FY26 EPS of ₹1.69 (vs ₹1.71 in FY 2025). For Shree Cement, the cost line for power and fuel remains central, given the quarter’s reported increase and the decline in operating margin from 23% to 19% sequentially.

Conclusion

Shree Digvijay Cement’s Q2 FY27 numbers show that strong volume and revenue growth can still translate into losses when input and logistics costs rise sharply and a shutdown affects operations. Shree Cement’s Q2 results, while profitable, also point to the same pressure point: power and fuel inflation compressing margins. The next set of quarterly updates will be watched for signs that cost pressures ease and that operating metrics stabilise after operational disruptions.