SGIL posts Rs 10.11 cr loss as raw-material and power costs hit margins
Operating profit was absorbed by Rs 7.18 cr of interest and Rs 8.81 cr of depreciation, leaving a consolidated pre-tax loss of Rs 10.69 cr.
Filed 13 Aug 2026, 14:01 IST · SGIL (SGIL)
Key takeaways
- SGIL's consolidated Q1FY27 loss was Rs 10.11 cr despite operating profit of Rs 4.73 cr, as interest and depreciation outweighed operating earnings.
- Management said raw-material inflation reduced margins by about 200 basis points, while electricity policy and tariff changes reduced them by about 100 basis points.
- Management projected exports would remain stable at 25%-30% of revenue and said an additional 5MW wind PPA could offset electricity-related pressure.
Operating earnings did not cover financing and depreciation charges
SGIL's consolidated operating profit of Rs 4.73 cr was more than absorbed by Rs 7.18 cr of interest and Rs 8.81 cr of depreciation. That took profit before tax to a loss of Rs 10.69 cr and net profit to a loss of Rs 10.11 cr, with EPS at negative Rs 6.51. Other income of Rs 0.56 cr and a Rs 0.58 cr tax credit provided only limited relief.
Input and electricity costs explain the 6.3% operating margin
Management said raw-material inflation affected margins by approximately 200 basis points. It also said electricity policy and tariff revisions affected margins by approximately 100 basis points. The commentary identifies the cost pressures behind the reported 6.3% operating margin.
Management points to exports and a 5MW wind PPA
Management projected export revenues would remain stable and contribute around 25%-30% of revenue. The company said it expects to offset electricity-related margin pressure through an additional 5MW wind PPA via open access. These are management statements about the business outlook, not reported Q1 outcomes.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹75 cr |
| Other income | ₹1 cr |
| Expenses | ₹70 cr |
| Operating profit | ₹5 cr |
| Operating margin (%) | 6.30% |
| Interest | ₹7 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹-11 cr |
| Tax | ₹-1 cr |
| Net profit | ₹-10 cr |
| EPS (₹) | ₹-6.51 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Export revenues are projected to remain stable and contribute around 25-30% of revenue.
New initiatives
- The company expects to offset electricity-related margin pressure through an additional 5MW wind PPA via open access.
Problems & risks
- Raw-material inflation affected margins by approximately 200 basis points.
- Electricity policy and tariff revisions affected margins by approximately 100 basis points.
What to watch
- Whether operating margin holds at or above 6.3% after the raw-material impact cited by management.
- Whether export revenues remain within management's projected 25%-30% contribution range.
- Whether the additional 5MW wind PPA changes the electricity-related margin pressure that management estimated at approximately 100 basis points.