Synopsis: Star Cement is in focus after reporting a net profit growth of 1,154 percent increase YoY to Rs 71 crores, which was largely due to the higher margins and the combination of lower expenses. Revenue increased 26 percent YoY to Rs 811 crores.
The shares of this leading manufacturer and of cement are in focus after reporting its financial performance for Q2 FY26. In this article, we will dive more into the details of its financials.
With a market capitalization of Rs 10,131 crore, the shares of Star Cement Ltd made a day low of Rs 248.35 per share, down by 4 percent from its previous day closing price of Rs 259 per share. Over the past five years, the stock has delivered a return of 192 percent, outperforming NIFTY 50’s return of 109 percent.
Q2 Highlights
Star Cement has reported an operating revenue of Rs 811 crore in Q2 FY26, representing a 26 percent growth compared to Rs 642 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 11 percent from Rs 912 crore.
Regarding its profitability, it reported a net profit of Rs 71 crore in Q2 FY26, a staggering growth of 1,154 percent as compared to Rs 6 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 28 percent from Rs 98 crore.
On the expenses front, it reported total expenses of Rs 621 crore in Q2 FY26, a growth of 14 percent as compared to Rs 546 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 9 percent from Rs 684 crore.
One of the key reasons behind the sharp jump in profit was the strong improvement in operating margins. The company’s operating profit margin increased sharply by 800 basis points to 23 percent in Q2 FY26 from just 15 percent in Q2 FY25, supported by better cost efficiency and higher capacity utilization. Star Cement also benefited from operating leverage, as its revenue grew faster (26 percent) than its expenses (14 percent) during the same period, helping boost overall profitability.
Star Cement is a top-notch manufacturer of cement in India and is heavily concentrated in the North-East, with a rise in its activities in West Bengal and Bihar. As per the latest update, the company has a production capacity of 7.7 MTPA and is planning to increase it to 25 MTPA by 2030. The company has 7 state-of-the-art manufacturing units and caters to customers from 10+ states through a network of 14,000+ dealers and retailers.
Written by Satyajeet Mukherjee
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