Star Cement Ltd Q1 FY27 Earnings Analysis

- Star Cement expects a 10% to 12% volume growth in FY27 over the FY26 sales of approximately 5.3 million tons of cement. - Demand in April and May 2026 showed some pickup after sluggishness due to elections, indicating potential support for this growth. - The company aims to increase capacity utilization to 80-90% within 3.5 to 4 years for new plants like Rajasthan and Jorhat. - Ramp-up of new grinding units in Bihar and Haryana planned around FY29 to strengthen presence outside Northeast. - Capex guidance includes INR600-700 crores in FY27 and INR1,500 crores in FY28 to support expansion. - Long-term strategy focuses on maintaining blended EBITDA per ton of INR1,300-1,400 with volume growth primarily from new projects. - Expansion projects include clinker and grinding plants targeting a combined capacity of approximately 9 million tons cement by FY30.

- Volume growth guidance for FY27 is 10% to 12% on cement sales (around 5.3 million tons in FY26). - EBITDA per ton expected to range between INR 1,500 to INR 1,700 for the next 2-3 years in Northeast. - Post Rajasthan project commissioning, blended EBITDA per ton expected around INR 1,300 to INR 1,400. - Total revenue for FY26 was INR 3,776 crores with EBITDA of INR 955 crores (excluding exceptionals). - FY27 subsidies expected to reduce to INR 145-150 crores from INR 184 crores in FY26, impacting EBITDA. - Capex guidance: INR 600-700 crores for FY27, INR 1,500 crores for FY28, supporting volume and capacity expansion. - Profit after tax for FY26 was INR 390 crores; growth expected in absolute terms with expansion, though margins per ton may moderate initially. - Long-term focus on premium pricing and capacity ramp-up over 3.5-4 years aiming at 80-90% utilization.

- Star Cement plans significant capex for expansion in Rajasthan, Bihar, and Umrangso. - Rajasthan project: 3.3 million tons clinker plant plus 2-2.5 million tons grinding unit; estimated capex INR 2,400-2,500 crores with 10% variation; targeted start by 1H FY29. - Bihar grinding unit expected within ~2 years; clinker to be sourced from Meghalaya. - Umrangso (Assam) grinding unit to have about 2 million tons capacity, coming around same time as Umrangso clinker plant. - Total capex estimate: INR 600-700 crores for FY27 and INR 1,500 crores for FY28. - ECs and land acquisition underway; approvals expected by October (year not specified, likely FY27). - Strategy includes brand building before commercial production, with an aim to reach 80-90% capacity utilization within 3.5-4 years for new units. - QIP for Rajasthan capex may be considered once net debt to EBITDA reaches 1.5x; no immediate plans yet.

- Star Cement has taken Board-level permission for raising funds through a Qualified Institutional Placement (QIP) as of Q3 FY26 but has not yet planned the timing of the issue due to weak market conditions. - The decision on QIP will be communicated in advance when made. - The company is currently managing its capex through internal accruals and liquid assets. - Capex plans for FY27 are estimated at INR600-700 crores and about INR1,500 crores for FY28, indicating no immediate need for aggressive fund raising. - No explicit mention of fresh debt fundraising was made; gross debt as per the balance sheet is INR583 crores with net debt at INR200 crores. - The company is focused on reducing leverage to a Net Debt/EBITDA ratio of 1.5 before considering QIP. Thus, while fundraising permission exists, no active equity or debt raising is currently underway.

The transcript provided from Star Cement Limited’s conference call does not explicitly mention the current or expected order book or pending orders. The discussion primarily covers: - Volume growth guidance of 10% to 12% for FY27. - Expansion plans in Rajasthan, Bihar, and Northeast regions. - Pricing trends, cost factors, and capex details. - Trade penetration and market strategy. - Financial performance and operational updates. There is no direct reference to order book size or pending orders in the available sections of the document. For precise order book status, you may need to refer to additional company disclosures or filings.