Saurashtra Cement swings to Rs 8.68 cr loss as margins turn negative
Revenue fell 17.52% QoQ while expenses declined 11.06%, pushing operating margin down 7.47 percentage points.
Filed 04 Nov 2026, 20:41 IST · after market close · Saurashtra Cement Ltd (SAURASHCEM)
Key takeaways
- Consolidated operating profit swung to a loss of Rs 11.09 cr as revenue fell 17.52% QoQ while expenses declined only 11.06%.
- Net profit moved from a Rs 9.13 cr profit in Q1FY27 to a Rs 8.68 cr loss, while the tax rate rose 7.23 percentage points to 30.91%.
- Operating margin fell 7.47 percentage points to -2.94%, which was 16.21 percentage points below the 13.27% median for 111 reported Commodities peers.
Price around the results
Revenue decline erased Q1 operating profit
Saurashtra Cement’s consolidated revenue fell to Rs 376.73 cr in Q2FY27 from Rs 456.75 cr in Q1FY27, turning operating profit of Rs 20.71 cr into a loss of Rs 11.09 cr. The company filed the results after market close on 4 November 2026.
Costs fell slower than revenue
Expenses declined 11.06% QoQ, less than the 17.52% fall in revenue, so operating margin contracted by 7.47 percentage points to -2.94%. Interest expense fell 6.10% and depreciation fell 6.96%, but these reductions did not offset the revenue drop. Other income more than doubled to Rs 11.59 cr, yet it represented -92.28% of pre-tax profit because pre-tax profit was negative.
Margin was among the weakest in the sector
The -2.94% operating margin was 16.21 percentage points below the 13.27% median for 111 Commodities peers that had reported the quarter, placing Saurashtra Cement fifth from the bottom. The available quarter-on-quarter trend shows a sharp reversal from Q1FY27’s 4.53% operating margin.
Tax benefit did not prevent a net loss
Profit before tax moved from Rs 11.96 cr in Q1FY27 to a loss of Rs 12.56 cr, while the tax line shifted to a Rs 3.88 cr benefit from Rs 2.83 cr of tax expense. The tax rate nevertheless increased by 7.23 percentage points to 30.91%, and EPS moved from Rs 0.82 to Rs -0.78.
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 | ₹377 cr | ₹457 cr | -17.52% |
| Other income | ₹12 cr | ₹5 cr | +120.34% |
| Expenses | ₹388 cr | ₹436 cr | -11.06% |
| Operating profit | ₹-11 cr | ₹21 cr | — |
| Operating margin (%) | -2.94% | 4.53% | — |
| Interest | ₹3 cr | ₹3 cr | -6.10% |
| Depreciation | ₹10 cr | ₹11 cr | -6.96% |
| Profit before tax | ₹-13 cr | ₹12 cr | — |
| Tax | ₹-4 cr | ₹3 cr | — |
| Net profit | ₹-9 cr | ₹9 cr | — |
| EPS (₹) | ₹-0.78 | ₹0.82 | — |
Operating margin of -2.94% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -2.94% after the 7.47-percentage-point QoQ decline.
- Whether revenue improves from Rs 376.73 cr without expenses again declining more slowly than revenue.
- Whether other income remains material relative to the operating result after contributing Rs 11.59 cr in Q2FY27.