Anjani Portland Cement Ltd has reported its consolidated financial results for the quarter ended June 2025, marking a modest recovery in profitability after several challenging quarters. The company posted a total revenue from operations of ₹1.16 billion and a net profit of ₹27 million, reflecting improved cost management and stable demand in core markets. The performance signals early signs of a turnaround for the Hyderabad-based cement manufacturer, which has faced margin pressures and operational disruptions in recent quarters.
Key Highlights from Q1 FY26 Results
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Revenue from operations stood at ₹1.16 billion, up 4.2 percent year-on-year
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Net profit reached ₹27 million, reversing a net loss of ₹190 million in Q1 FY25
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EBITDA margin improved to 6.1 percent, supported by lower fuel and freight costs
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Cement dispatches rose 7.8 percent YoY, driven by demand in Telangana and Andhra Pradesh
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Bhavya Cements plant resumed full operations in April 2025, aiding volume recovery
Segment-Wise Performance
Cement Sales and Dispatches
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Total cement and clinker sales volume reached 3.87 lakh metric tonnes
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Growth driven by infrastructure projects and rural housing demand
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OPC and PPC variants accounted for 92 percent of total dispatches
Operational Efficiency
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Power and fuel costs declined 11 percent YoY due to improved blending and sourcing
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Freight optimization through multimodal logistics reduced outbound costs by ₹12 million
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Automation upgrades at Chintalapalem plant enhanced throughput and reduced downtime
Other Income and Cost Controls
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Other income stood at ₹8.2 million, primarily from interest and scrap sales
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Employee expenses remained flat at ₹55 million, reflecting headcount rationalization
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Raw material costs increased marginally due to limestone procurement challenges
Strategic Developments and Business Outlook
Anjani Portland Cement continues to focus on operational stability and regional expansion:
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Plans to commission a new grinding unit in Suryapet by Q4 FY26
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Exploring solar energy integration to reduce power dependency and improve ESG metrics
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Strengthening dealer network in Karnataka and Tamil Nadu to boost retail sales
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Evaluating merger synergies with Bhavya Cements for cost and capacity optimization
The company’s management remains cautiously optimistic about demand recovery in H2 FY26, supported by government spending on roads, housing, and irrigation.
Market Reaction and Investor Sentiment
Anjani Portland Cement’s stock closed at ₹146.25 on the NSE, with muted movement post-results. While the financial turnaround is modest, investors are watching for sustained profitability and strategic execution.
Investor cues:
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ROCE improved to 2.8 percent from -2.3 percent in Q1 FY25
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Debt-to-equity ratio stable at 0.62, indicating manageable leverage
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Promoter holding remains high at 74.9 percent, reflecting long-term commitment
Analysts suggest that consistent profitability and capacity utilization will be key to re-rating the stock, which currently trades at a price-to-book of 2.05.
Industry Implications and Competitive Landscape
Anjani Portland Cement’s Q1 performance reflects broader trends in the cement sector:
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Regional players are regaining pricing power amid stable input costs
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Demand from Tier 2 and Tier 3 cities is driving volume growth
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Consolidation and capacity expansion remain central to long-term competitiveness
With peers like Kesoram Industries and NCL Industries also reporting margin recovery, the southern cement market is poised for a more stable FY26.
Source: The Economic Times – August 12, 2025 Moneycontrol – August 12, 2025 India Infoline – August 12, 2025
