The India Cements Limited Earnings Summary — Q1 FY2027
India Cements Reports Turnaround with Positive Net Profit as UltraTech Acquisition Stabilizes Operations
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 17.0% sequentially in Q1 FY2027.
- Revenue of ₹1,019 Cr is 0.5% lower year-on-year.
- Revenue has compounded at -8.2% annualised over the last 10 quarters.
- Net profit of ₹27 Cr is 120.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -46.3% annualised across the period.
- Operating margin stands at 15.3% in Q1 FY2027.
- Operating margin expanded by 716 bps year-on-year.
- Over the last two years operating margin has expanded by 1768 bps.
- PBT margin is 3.5%.
- Expense growth of -8.3% remained below revenue growth of -0.5%.
- Operating profit of ₹156 Cr is 87.2% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 55/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,019 | 1,229 | 1,114 | 1,117 | 1,025 | 1,198 | 940 | 1,022 | 1,027 | 1,236 |
| Expenses | Stable | 864 | 1,076 | 1,035 | 1,036 | 942 | 1,200 | 1,130 | 1,185 | 1,051 | 1,199 |
| Operating Profit | Volatile | 156 | 153 | 79 | 81 | 83 | -2 | -190 | -163 | -25 | 37 |
| Operating Margin | Volatile | 15.3% | 12.5% | 7.1% | 7.3% | 8.1% | -0.2% | -20.2% | -15.9% | -2.4% | 3.0% |
| Other Income | Volatile | -22 | 15 | 15 | 23 | -115 | 110 | 396 | -64 | 256 | 34 |
| Interest | Softening | 26 | 23 | 24 | 25 | 27 | 38 | 73 | 73 | 82 | 64 |
| Depreciation | Improving | 72 | 76 | 75 | 74 | 74 | 75 | 55 | 55 | 56 | 57 |
| Profit Before Tax | Volatile | 36 | 69 | -5 | 4 | -132 | -5 | 77 | -355 | 93 | -49 |
| Tax | Volatile | 9 | 9 | -2 | -4 | -1 | -24 | -39 | -16 | 21 | 1 |
| Net Profit | Volatile | 27 | 60 | -3 | 9 | -133 | 15 | 122 | -339 | 58 | -61 |
| Net Margin | Volatile | 2.6% | 4.8% | -0.2% | 0.8% | -13.0% | 1.2% | 13.0% | -33.2% | 5.7% | -4.9% |
Key Takeaways
- Net profit turned positive on a YoY basis, reaching ₹26.85 crore compared to a loss of ₹132.91 crore in Q1 last year.
- Operating margins saw a sharp expansion to 15.28%, up from practically zero a year ago, reflecting lower fuel costs and synergy benefits.
- The Quarter reflects the first full period under the strategic umbrella of UltraTech Cement, which now holds a 75% stake in the company.
- Debt-to-Equity ratio remains stable and relatively low at 0.15 times, supported by a significantly improved net worth reaching ₹10,152 crore.
- Revenue remained virtually flat YoY (-0.5%) despite the broader sector growth, indicating a continued focus on profitability over volume.
- Freight and Forwarding expenses dropped dramatically to ₹20.15 crore from ₹199.55 crore YoY, suggesting a massive shift in logistics strategy.
- Ongoing legal contingencies involving CCI penalties (₹187.48 Cr) and asset attachments (₹120.34 Cr) remain unresolved in the Supreme Court.
Management Guidance
The company is transitioning to a more efficient operating model under UltraTech ownership, focusing on green power mix and capital discipline.
Sentiment Shift
Improving
The transition from a stressed regional player to a subsidiary of the industry leader has fundamentally stabilized the profit and loss statement.
Outlook
India Cements is expected to benefit from UltraTech's procurement scale and operational benchmarks, aiming to modernize aging kiln technologies and improve capacity utilization.
From the Annual Report (Key Quotes)
“The Board informed that its meeting approved Standalone and Consolidated Unaudited Financial Results for the quarter ended 30.06.2026.”
“The Holding Company has been legally advised that it has strong grounds to defend its position [regarding CCI penalties].”
“Operating Margin improved to 15.28% from 0.01% in the same quarter last year.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from The India Cements Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.