India Cements Q2 FY27 Results: Consolidated Net Profit ₹38.82 Crore on Total Income of ₹1,145.70 Crore

Summary

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

Profit rose on margin, not on sales. Total income was flat, ₹1,145.70 crore against ₹1,146.04 crore, yet net profit rose to ₹38.82 crore from ₹8.81 crore. Taking profit before tax, adding back finance costs and depreciation and leaving out other income gives an operating profit of about ₹144 crore against ₹75 crore (derived), or 12.6% of revenue from operations against 6.7%. The filing gives no volumes, prices or cost breakdown, so whether cost, mix or realisation lifted the margin is not stated.

Not all of that reached the bottom line. Other income fell to ₹3.67 crore from ₹29.00 crore, and tax went from a ₹4.42 crore credit to ₹13.46 crore, only ₹0.79 crore of which is current tax and ₹12.67 crore deferred, so little cash tax is being paid. Depreciation (₹71.64 crore) and finance costs (₹24.06 crore) were both slightly lower. Net profit therefore rose about ₹30 crore while operating profit rose about ₹69 crore.

Against Q1 FY27 total income rose 12.0% and net profit 44.6%, but much of the profit gain is the absence of the ₹25.28 crore exceptional expense that Q1 carried; Q2 had none. For H1 FY27 net profit is ₹65.67 crore against a ₹124.10 crore loss in H1 FY26, on total income of ₹2,168.57 crore, down 0.5%: the half's swing from loss to profit also came on flat income.

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

Standalone and consolidated are effectively the same company this quarter. Standalone total income is ₹1,145.45 crore and net profit ₹38.85 crore, ₹0.25 crore less income and ₹0.03 crore more profit than the group, so the subsidiaries add almost nothing. The year-on-year contrast is sharper standalone: a ₹38.85 crore profit against a ₹6.86 crore loss in Q2 FY26, with finance costs down to ₹24.06 crore from ₹31.62 crore.

Funding is short-term paper that rolls over inside a quarter. The company redeemed ₹100 crore of commercial paper issued in the previous quarter and issued new paper of ₹100 crore at 6.40% a year due 23 Dec 2026 and a further issue at 6.32% due 11 Dec 2026, rated CARE A1+. The next maturities fall in December 2026, and the filing does not say how they will be repaid.

Two legal matters are large against the quarter's profit. Assets with a carrying value of ₹120.34 crore were attached under a provisional order of 25 Feb 2015; the company has appealed, and properties valued at ₹3.35 crore were released on 9 Jul 2026 against a bank guarantee of the same amount. A Competition Commission penalty of ₹187.48 crore (order of 31 Aug 2016) is before the Supreme Court, which admitted the appeal on 5 Oct 2018 and kept the interim order in place; the company has deposited 10%, ₹18.75 crore. The penalty is about 4.8 times the quarter's net profit and the attached assets about 3.1 times. The statutory auditors have continued to emphasise both matters. The filing describes the company as engaged mainly in cement and related products and as a subsidiary of UltraTech Cement.

Inference

The quarter's profit comes from a margin recovery on flat sales, and the comparison periods are uneven: Q2 FY26 was a near-breakeven quarter and Q1 FY27 carried an exceptional expense. The filing gives no volumes, prices or costs, so whether the margin can be held cannot be read from it.

For shareholders, the attachment and the competition penalty remain open with no date for a decision in the filing, and the commercial paper due in December 2026 is the nearest funding event it shows.

Reference: Original filing (PDF)