Sagar Cements' net loss widens to Rs 51.54 cr as costs rise
Revenue was nearly flat sequentially, but expenses rose +4.17%, cutting operating margin by 3.84 percentage points.
Filed 30 Oct 2026, 18:21 IST · after market close · Sagar Cements Ltd (SAGCEM)
Key takeaways
- Consolidated net loss widened 83.42% sequentially to Rs 51.54 cr as expenses rose 4.17% while revenue fell 0.10%.
- Operating margin fell 3.84 percentage points to 6.42%, with interest expense up 5.61% and depreciation up 3.60% sequentially.
- Sagar Cements' margin was 8.91 percentage points below the 15.33% median for 54 reported Commodities peers, ranking eighth from the bottom.
Price around the results
Flat revenue did not prevent a wider loss
Sagar Cements reported consolidated revenue of Rs 705.36 cr in Q2FY27, almost unchanged sequentially, but expenses grew 4.17% to Rs 660.05 cr. That reduced operating profit 37.43% to Rs 45.31 cr and widened the net loss 83.42% to Rs 51.54 cr. The company filed the results after market close, so there is no reported market reaction yet.
Higher costs and financing charges hit margins
Expenses grew faster than revenue, narrowing operating margin by 3.84 percentage points to 6.42%. Interest expense rose 5.61% to Rs 55.16 cr and depreciation increased 3.60% to Rs 61.29 cr, taking the company to a pre-tax loss of Rs 68.72 cr. Other income was only 2.42 cr and represented -3.52% of pre-tax profit, so it did not offset the operating and below-operating pressures.
Margin sits below the reported peer median
Sagar Cements' 6.42% operating margin was 8.91 percentage points below the 15.33% median among 54 Commodities peers that had reported the same quarter. The sequential margin decline from 10.26% in Q1FY27 marks a sharp deterioration within the two-quarter trend available here. The tax rate increased by 1.8 percentage points to 25.0%, even as the company reported a loss before tax.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹705 cr | ₹706 cr | -0.10% |
| Other income | ₹2 cr | ₹2 cr | +1.68% |
| Expenses | ₹660 cr | ₹634 cr | +4.17% |
| Operating profit | ₹45 cr | ₹72 cr | -37.43% |
| Operating margin (%) | 6.42% | 10.26% | — |
| Interest | ₹55 cr | ₹52 cr | +5.61% |
| Depreciation | ₹61 cr | ₹59 cr | +3.60% |
| Profit before tax | ₹-69 cr | ₹-37 cr | -87.81% |
| Tax | ₹-17 cr | ₹-8 cr | -102.36% |
| Net profit | ₹-52 cr | ₹-28 cr | -83.42% |
| EPS (₹) | ₹-3.94 | ₹-2.15 | -83.26% |
Operating margin of 6.42% compares with a Commodities sector median of 15.33% across 54 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 6.42% after falling 3.84 percentage points sequentially.
- Whether expenses moderate from 4.17% sequential growth while revenue was down 0.10%.
- Whether interest expense moves below Rs 55.16 cr and depreciation below Rs 61.29 cr.