India Cements Reports ₹132.9 Crore Q1 Loss; Plans Capex to Boost Efficiency

21 Jul 2025 , 01:01 PM

India Cements slipped into the red for the April–June quarter, posting a consolidated net loss of ₹132.90 crore. A year ago, the company had reported a profit of ₹58.47 crore for the same period.

For the full financial year ended March 31, 2025, the company had already booked a loss of ₹143.68 crore. Revenue for the first quarter came in at ₹1,033.85 crore, more or less flat compared to ₹1,042.27 crore recorded in the corresponding quarter last year. On an annual basis, total income stood at ₹4,357.31 crore.

During the June quarter, the company decided to exit its investment in Industrial Chemicals and Monomers Ltd. It sold its entire equity stake in the subsidiary as part of its portfolio review.

One area where India Cements found some breathing space was finance cost. It refinanced a portion of its borrowings, bringing down interest expenses considerably. Finance costs fell to ₹26.58 crore in Q1 FY26. That’s a sharp drop from ₹82.36 crore in the same quarter last year.

Looking ahead, the company is planning a capex programme to be rolled out over the next two years. The focus will be on reducing production costs, improving energy efficiency, and scaling up renewable power use across its facilities.

Safety upgrades are also on the table as part of this investment cycle. Management expects these changes to bring down operating costs over time, while also strengthening its production backbone.

It believes the shift will support margin recovery, especially when combined with benefits from scale and an expanded distribution footprint. The company is also optimistic about demand trends. A pickup in government spending on infrastructure and steady housing demand are expected to create tailwinds.

India Cements currently operates with a total cement production capacity of 14.75 million tonnes per annum. Its integrated manufacturing units are spread across Tamil Nadu, Andhra Pradesh, Telangana, and Rajasthan. It also runs a standalone grinding facility in Tamil Nadu.

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