Star Cement Ltd Q3 FY26 Earnings Analysis

- For FY27, Star Cement expects around 12% volume growth, mainly due to ramping up of the Siliguri plant, despite no entry into new geographies. - The target capacity by FY29-FY30 is around 18-20 million tons, with 18 million tons being a more realistic target. - The Bihar grinding unit with 2 million tons capacity is expected to contribute to volume growth from around FY29. - The company anticipates revenue of about Rs. 80-90 crores from AAC blocks, construction chemicals, and RMC in FY26 and FY27 as part of diversification. - Northeast market volume is growing at about 8-9%, and infrastructure projects in Arunachal Pradesh are expected to drive future demand. - Competition in Northeast is expected in 2-3 years with new entrants, but the company aims to protect profitability and market share.

- Star Cement targets reaching 18-20 million tons capacity by FY29-FY30, supporting volume growth. - For FY27, volume growth of around 12% is expected as ramp-up of Siliguri plant continues; full contribution from new capacities (Bihar grinding and Rajasthan plants) expected by FY29. - AAC block and allied products expected to generate Rs. 80-90 crores revenue in FY27 with 12%-15% margins, contributing to diversification. - EBITDA per ton guidance earlier indicated around Rs. 1,500-1,550 with some room for improvement based on recent performance. - Incentives from Bihar's 300% SGST benefit will support profitability of new grinding units. - Fuel cost is expected to remain stable at Rs. 1.25 per kcal in near term, supporting cost efficiency. - The company anticipates EBITDA and profit growth alongside volume expansion, with no near-term pricing pressures anticipated.

- FY26 CAPEX planned around Rs. 710-720 crores, including: - Completion of Silchar plant - Setting up 42 MW solar power plant in Assam - Land acquisition in Umrangso, Bihar, and Jorhat - Bihar grinding plant (2 million tons) planned to improve utilization; estimated CAPEX approx. Rs. 500 crores including land. - Rajasthan expansion (Nimbol - 3 million tons clinker, 4 million tons grinding) projected CAPEX around Rs. 2,400-2,500 crores (final confirmation pending). - Silchar plant expected to commission by January next year; Jorhat project potentially deferred, focus shifted to Bihar plant due to attractive SGST incentive (300%). - Land acquired and groundwork underway for Umrangso clinker plant targeting FY28-29, capacity and start timeline dependent on demand. - Rajasthan project CAPEX to start gradually; major spending focused on Bihar grinding unit in next year. - Solar power plant and future expansions to support sustainability and capacity growth.

- Star Cement has passed an enabling resolution to raise funds of around Rs. 1,500 crores. - The form of fundraise (preferential allotment, QIP, or other) is yet to be decided. - The funds are intended mainly to support expansion projects, particularly in Rajasthan. - Details regarding the expansion project and fundraising approach will be shared once finalized and circulated to investors. - No explicit mention of debt or equity preference at this stage. - Management emphasizes transparency and plans to provide a detailed presentation when ready.

The provided transcript and document do not mention any details regarding the current or expected order book or pending orders for Star Cement Limited. The discussion primarily focuses on financial results, capacity expansions, production, sales volumes, demand outlook, and operational costs. There is no specific information about order backlog or pending orders in the transcript.