Sagar Cements Ltd

- The company has applied for SEBI clearance for a rights issue, valid up to December 2025. - They are evaluating the option of an Offer for Sale (OFS) to reduce stake and comply with minimum public shareholding norms. - The company intends to complete the fundraising process within the current financial year (FY 2026). - Regarding debt, gross debt and net debt positions are expected to remain similar to the previous year despite expansions and investments in green energy. - The company is managing debt by balancing repayments with new borrowings for capex and efficiency improvements. - No significant increase or change in overall debt levels is anticipated for the current year.

- Current year CapEx: Initially planned ₹360 crore, revised upward to around ₹450 crore due to accelerated implementation. - Out of ₹450 crore, ₹180 crore spent in H1 FY 2026; remaining ₹250 crore expected in H2 FY 2026. - FY 2027 CapEx guidance: ₹250-275 crore, including maintenance CapEx. - Capacity expansions underway: - Jeerabad: 0.5 MTPA expansion expected to commission by end of FY 2026, increasing capacity from 1 to 1.5 MTPA. - Gudipadu: 0.25 MTPA planned but yet to start. - Dachepalli: 0.75 MTPA expansion planned. - Total targeted capacity increase from 10.5 MTPA to 12 MTPA by FY 2027. - Waste Heat Recovery System (WHRS) at Gudipadu (4.5 MW) is a strategic green energy investment; typical WHRS CapEx is ₹18-20 crore per MW and is within budget. - Solar project commissioned this quarter; other green energy initiatives ongoing to improve efficiencies.

- **Volume Growth Guidance**: Maintaining 6 million tonnes guidance for FY 2026; potential upward revision for FY 2027 volumes (Shravan Shah Q&A). - **Capacity Expansion**: Commissioning 1.5 MTPA expansion by FY 2027, increasing capacity from 10.5 MTPA to 12 MTPA (Deep Lapsia Q&A). - **Demand Outlook**: - Expecting high single-digit growth in South India for FY 2026, with potential double-digit upside, especially in Andhra Pradesh and Telangana (Sreekanth Reddy). - FY 2027 demand expected to grow 15%+ in Andhra/Telangana and 5-10% in Tamil Nadu. - **Price Outlook**: - Prices expected to remain flat in Q3 FY 2026 and start picking up from early Q4, sustained till early next calendar year. - Structural price increase possible post Q4 aligned with demand improvements. - **Revenue Diversification**: Ongoing initiatives to diversify revenue streams to support regional presence and profitability.

- Volume growth guidance for FY '26 at around 6 million tonnes; for FY '27, an upward revision from previous ~7 million tonnes is expected. - EBITDA per tonne expected to normalize around ₹600 for the current year, with potential improvements due to green energy initiatives (solar, waste heat recovery) and capacity expansions. - Andhra Cement plant expected to break even at 50% utilization; targeted utilization of 60% by next year with EBITDA per tonne of ₹500-₹600. - Capacity expansions (totaling 1.5 MTPA by FY '27) at Jeerabad, Gudipadu, and Dachepalli will support volume growth. - Operating leverage and cost optimization initiatives (e.g., freight efficiency, clinker factor reduction) will enhance margins. - Waste heat recovery and capacity addition expected to significantly contribute to profitability going forward. - Price scenario expected to remain flat to stable in near term with possible recovery from Q4 FY '26 onwards. - Overall positive outlook on earnings growth supported by demand recovery and operational efficiencies.

The transcript provided does not mention any details specifically about the current or expected order book or pending orders for Sagar Cements Limited. There is no direct reference to order book status or pending contracts during the Q2 FY26 earnings conference call held on October 24, 2025. If you need detailed information on order book or pending orders, you may need to consult the company's official quarterly report, investor presentation, or reach out to their investor relations team for the latest updates.