Star Cement Q2 profit falls 44% as costs outpace revenue

Star Cement Limited reported consolidated profit attributable to shareholders of Rs 40.42 crore for the quarter ended September 30, 2026, down 43.8% from Rs 71.95 crore a year earlier, as total expenses rose 9.0% to Rs 786.72 crore while revenue from operations increased 2.5% to Rs 831.03 crore.

What did Star Cement report for the September 2026 quarter?

Star Cement reported consolidated total income of Rs 841.83 crore for the quarter ended September 30, 2026, compared with Rs 814.42 crore in the corresponding quarter of 2025. Revenue from operations was Rs 831.03 crore, up from Rs 810.94 crore, while other income rose to Rs 10.80 crore from Rs 3.47 crore. The board approved the unaudited results on November 6, 2026.

Profit before tax fell to Rs 55.12 crore from Rs 92.35 crore, a decline of Rs 37.23 crore. Consolidated profit after tax was Rs 39.58 crore, compared with Rs 71.06 crore a year earlier. Profit attributable to Star Cement shareholders was Rs 40.42 crore after a Rs 1.84 crore loss attributable to non-controlling interests, and basic and diluted earnings per share were Rs 1.00, against Rs 1.78.

Why did Star Cement’s quarterly profit decline?

Star Cement’s quarterly profit declined because expenses increased by Rs 64.65 crore, exceeding the Rs 27.42 crore increase in total income. Cost of materials consumed rose to Rs 119.54 crore from Rs 105.57 crore, power and fuel expense increased to Rs 155.39 crore from Rs 133.00 crore, and employee benefits expense reached Rs 83.55 crore from Rs 71.49 crore.

Inventory-related costs increased to Rs 125.19 crore from Rs 117.74 crore, while other expenses rose to Rs 123.39 crore from Rs 113.67 crore. Finance costs were Rs 15.21 crore, compared with Rs 11.06 crore, and depreciation and amortisation expense was Rs 93.85 crore, up from Rs 90.22 crore. These reported cost movements coincided with the reduction in profit before tax.

Carriage outward on finished goods increased to Rs 147.27 crore from Rs 143.80 crore, while carriage on internal clinker transfer rose to Rs 73.46 crore from Rs 70.99 crore. The company did not report an exceptional item in either September quarter, meaning the year-on-year movement in pre-tax profit reflects the reported operating income and expense lines.

How did Star Cement perform sequentially and in the first half?

Star Cement’s September-quarter revenue and profit were lower than in the quarter ended June 30, 2026. Revenue from operations declined from Rs 942.89 crore in June to Rs 831.03 crore in September, while shareholder-attributable profit fell from Rs 74.72 crore to Rs 40.42 crore. Total expenses decreased from Rs 853.58 crore to Rs 786.72 crore, but total income also declined from Rs 951.09 crore to Rs 841.83 crore.

For the half year ended September 30, 2026, revenue from operations rose to Rs 1,773.92 crore from Rs 1,722.93 crore in the prior-year period. However, profit attributable to shareholders declined to Rs 115.14 crore from Rs 170.40 crore. Total expenses increased to Rs 1,640.21 crore from Rs 1,501.19 crore, while profit before tax fell to Rs 152.64 crore from Rs 227.01 crore.

Half-year consolidated profit after tax was Rs 113.49 crore, compared with Rs 169.23 crore a year earlier, and earnings per share were Rs 2.85 against Rs 4.22. Star Cement said its tax expense for the current quarter and half year is not comparable with earlier periods because the company and one subsidiary adopted the concessional income-tax rate under Section 115BAA from April 1, 2026.

What do Star Cement’s cash flow and balance sheet show?

Star Cement generated consolidated operating cash flow of Rs 357.34 crore in the half year ended September 30, 2026, compared with Rs 169.17 crore in the prior-year half. Cash generated from operations rose to Rs 400.46 crore from Rs 212.99 crore, while income tax paid was Rs 43.13 crore, compared with Rs 43.81 crore.

Investing activities used Rs 401.37 crore, versus Rs 275.31 crore in the corresponding previous period. Spending on property, plant, equipment and intangible assets was Rs 203.72 crore, compared with Rs 212.43 crore, while net purchases of investments were Rs 95.88 crore. The group also paid Rs 14.06 crore towards acquiring subsidiaries during the half year.

Consolidated cash and cash equivalents were Rs 38.93 crore at September 30, 2026, compared with Rs 13.14 crore at March 31, 2026. Total consolidated assets were Rs 4,646.86 crore, down from Rs 4,933.51 crore at March 31. Non-current borrowings were Rs 493.19 crore versus Rs 503.54 crore, while current borrowings increased to Rs 93.00 crore from Rs 74.39 crore.

Which disclosed items affect Star Cement’s comparison?

Star Cement’s consolidated results include Nitesh Minerals Private Limited from April 1, 2026, and Jaitaran Renewable Power Private Limited from April 23, 2026. The group acquired 100% equity shareholdings in both entities during the quarter ended June 30, 2026, and consolidated their financial performance from their respective acquisition dates under Indian Accounting Standard 103 and Indian Accounting Standard 110.

The board declared an interim dividend of Rs 1 per equity share, equal to 100% of the Rs 1 face value, on November 6, 2026. Star Cement said it is primarily engaged in manufacturing and selling cement and cement-related products, with no separate reportable segments under Indian Accounting Standard 108.

The auditor’s report also identified three subsidiaries whose interim financial information was not independently reviewed. Those subsidiaries had combined assets of Rs 34.75 crore and recorded a net loss after tax of Rs 16.98 lakh for the September 2026 quarter. The auditor said management considered the entities not material to the group and did not modify its review conclusion.

Conclusion

Star Cement recorded higher September-quarter revenue but lower profitability, as a 9.0% rise in expenses exceeded the 3.4% increase in total income. The same pattern appeared in the first half: revenue from operations increased by Rs 50.99 crore, while profit attributable to shareholders declined by Rs 55.26 crore.

The next reported developments to watch are the contribution of Nitesh Minerals Private Limited and Jaitaran Renewable Power Private Limited following their April 2026 acquisitions, and the effect of the concessional tax election adopted from April 1, 2026. The company has also declared a Rs 1-per-share interim dividend on November 6, 2026.