Revenue drop pushes Shree Digvijay Cement into Q2 operating loss
Revenue fell faster than expenses sequentially, cutting operating margin by 9.29 percentage points; the stock dropped 10.25% on the filing day.
Filed 23 Oct 2026, 13:28 IST · Shree Digvijay Cement Co. Ltd (SHREDIGCEM)
Key takeaways
- Consolidated operating margin fell 9.29 percentage points sequentially to -0.63% as revenue dropped faster than expenses.
- The company swung from a consolidated net profit of Rs 6.82 cr in Q1FY27 to a net loss of Rs 16.28 cr.
- The stock fell 10.25% on the results day, while trading volume reached 6.31 times its usual level.
Price around the results
Sales decline erased the operating profit
Consolidated revenue fell 17.19% sequentially to Rs 279.31 cr, while expenses declined only 8.76% to Rs 281.07 cr. Since costs fell more slowly than revenue, operating profit dropped from Rs 29.20 cr to a loss of Rs 1.77 cr. Other income contributed only -2.09% of pre-tax profit, so it did not provide meaningful support.
Finance costs kept the quarter below the line
Interest expense declined 2.92% sequentially and depreciation fell 0.42%, but the operating loss still left the company with a pre-tax loss of Rs 22.06 cr. The tax rate increased 0.79 percentage points to 26.22%, while tax was a benefit of Rs 5.78 cr; the benefit was not enough to prevent a net loss of Rs 16.28 cr. Basic EPS fell from Rs 0.46 to Rs -1.10.
Margin was far below the reported commodities peer set
Among 15 commodities peers that had reported the same quarter, the median operating margin was 15.97%. Shree Digvijay Cement's -0.63% margin was 16.60 percentage points below that median and ranked second from the bottom. This also marked a sequential reversal from the 8.66% margin recorded in Q1FY27.
The market reaction was sharply negative
The stock fell 10.25% on 23 October, with no opening gap and a 9.86% relative decline against the market measure. Trading volume was 6.31 times its usual level, indicating an unusually active response to the results.
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 | ₹279 cr | ₹337 cr | -17.19% |
| Other income | ₹0 cr | ₹1 cr | -57.41% |
| Expenses | ₹281 cr | ₹308 cr | -8.76% |
| Operating profit | ₹-2 cr | ₹29 cr | — |
| Operating margin (%) | -0.63% | 8.66% | — |
| Interest | ₹11 cr | ₹12 cr | -2.92% |
| Depreciation | ₹9 cr | ₹10 cr | -0.42% |
| Profit before tax | ₹-22 cr | ₹9 cr | — |
| Tax | ₹-6 cr | ₹2 cr | — |
| Net profit | ₹-16 cr | ₹7 cr | — |
| EPS (₹) | ₹-1.10 | ₹0.46 | — |
Operating margin of -0.63% compares with a Commodities sector median of 15.97% across 15 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -10.25% | -9.86% |
Volume on the results session was 6.31× its 20-day average.
What to watch
- Whether revenue improves from Rs 279.31 cr versus Rs 337.27 cr in Q1FY27.
- Whether operating margin returns above the Q1FY27 level of 8.66%.
- Whether expenses grow more slowly than revenue, reversing the Q2 pattern of -8.76% versus -17.19%.