ACL - Andhra Cements
📢 Recent Corporate Announcements
Andhra Cements Limited has issued a regulatory disclosure for FY 2026-27, confirming it does not qualify as a 'Large Corporate' under SEBI guidelines. The company reported total outstanding borrowings of Rs 702.98 crores as of March 31, 2026, an increase from Rs 576.51 crores at the start of the fiscal year. During the year, the company added incremental borrowings of Rs 126.47 crores, none of which were raised through debt securities. The company's credit rating is currently listed as IND BBB with a rating watch.
- Total outstanding borrowings reached Rs 702.98 crores as of March 31, 2026.
- Incremental borrowings during the financial year amounted to Rs 126.47 crores.
- Zero funds were raised through the issuance of debt securities during the period.
- Current credit rating stands at IND BBB with a 'Rating Watch' status.
Andhra Cements Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended March 31, 2026. The company's Registrar and Share Transfer Agent (RTA), CIL Securities Ltd, confirmed that all share certificates received for dematerialization were processed and the securities were listed on the stock exchanges. The RTA further confirmed that physical certificates were mutilated and cancelled after due verification. This is a standard administrative filing ensuring the integrity of the shareholding records.
- Compliance certificate issued for the quarter ended March 31, 2026.
- RTA CIL Securities Ltd confirmed processing of all dematerialization requests within stipulated timelines.
- Physical security certificates were mutilated and cancelled as per SEBI guidelines.
- The name of the Depositories has been substituted in the Register of Members as the registered owner.
India Ratings & Research has placed Andhra Cements Limited's (ACL) bank loan facilities of INR 9,869.70 million on 'Rating Watch with Developing Implications'. This action follows the in-principle approval for the amalgamation of ACL with its parent company, Sagar Cements Limited (SCL). ACL reported a modest EBITDA of INR 72.3 million in 9MFY26, a recovery from a loss of INR 292 million in FY25. The merger aims to streamline the group's cement business, reduce overhead costs, and optimize tax outflows using ACL's accumulated losses.
- Credit rating assigned as IND BBB/IND A3+ and placed on Rating Watch with Developing Implications.
- Total bank loan facilities under rating review amount to INR 9,869.70 million.
- ACL reported 9MFY26 revenue of INR 2,876 million and EBITDA of INR 72.3 million.
- Parent company SCL holds a 75% stake and has provided INR 950 million in inter-corporate deposits as of March 2025.
- Amalgamation expected to be completed in 9-12 months, subject to NCLT and regulatory approvals.
The Board of Directors of Andhra Cements Limited (ACL) has granted in-principle approval for its merger with the holding company, Sagar Cements Limited. This strategic consolidation is intended to streamline operations and leverage synergies between the two entities. The merger is currently at an early stage and remains subject to necessary regulatory and statutory approvals. Shareholders should await further details regarding the share exchange ratio and the definitive merger scheme.
- Board of Directors approved the merger proposal in a meeting held on March 30, 2026.
- Andhra Cements Limited is proposed to be merged into its parent entity, Sagar Cements Limited.
- The merger is subject to approvals from regulatory authorities and other concerned stakeholders.
- The move aims to consolidate the cement business under a single corporate structure to improve efficiency.
Andhra Cements reported a strong 66% year-on-year increase in revenue from operations to ₹110.26 crore for the quarter ended December 31, 2025. However, the company remains deeply in the red, posting a net loss of ₹44.14 crore for the quarter, slightly wider than the ₹43.73 crore loss in the same period last year. High operational expenses, particularly power and fuel costs which surged to ₹55.83 crore, continue to erode the top-line gains. For the nine-month period, the net loss has widened to ₹115.68 crore compared to ₹102.20 crore in the previous year.
- Revenue from operations grew 66.2% YoY to ₹110.26 crore in Q3 FY26.
- Net loss for the quarter stood at ₹44.14 crore, compared to a loss of ₹43.73 crore in Q3 FY25.
- Power and fuel expenses spiked significantly to ₹55.83 crore from ₹39.33 crore in the year-ago quarter.
- Finance costs increased to ₹26.33 crore for the quarter from ₹19.01 crore YoY.
- Parent company Sagar Cements reduced its stake from 90% to 82.24% via an OFS in January 2026 to meet MPS norms.
Andhra Cements Limited has announced the closure of its trading window for all designated persons and their relatives starting April 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of audited financial results for the fourth quarter and full year ending March 31, 2026. The window will remain closed until 48 hours after the board meeting where the results are approved. The specific date for the board meeting will be communicated to the exchanges at a later time.
- Trading window closure effective from April 1, 2026
- Closure is related to the audited financial results for Q4 and FY ending March 31, 2026
- Restriction applies to Directors, KMPs, and all designated persons
- Window to reopen 48 hours after the declaration of financial results
Sagar Cements Limited, the promoter of Andhra Cements, has successfully offloaded 66,76,843 equity shares representing a 7.24% stake in the company. The sale was conducted via an Offer for Sale (OFS) on March 17 and 18, 2026, to comply with SEBI's Minimum Public Shareholding (MPS) requirements. Following this transaction, the promoter's holding has decreased from 82.24% to 75%, while public shareholding has reached the mandatory 25% threshold. This move ensures the company remains compliant with listing regulations and avoids potential regulatory action.
- Promoter Sagar Cements sold 66,76,843 equity shares representing 7.24% of total capital
- Promoter shareholding reduced from 82.24% to exactly 75.00%
- Public shareholding increased to 25.00%, meeting SEBI Minimum Public Shareholding norms
- The sale was executed through an Offer for Sale (OFS) mechanism on March 17-18, 2026
- Compliance achieved under Rule 19A of the Securities Contracts (Regulation) Rules 1957
Sagar Cements Limited, the promoter of Andhra Cements, has announced an Offer for Sale (OFS) to divest up to 7.24% of the company's equity. This move is specifically intended to meet SEBI's Minimum Public Shareholding (MPS) requirement, which mandates a 25% public float. The sale will reduce the promoter's aggregate holding from 82.24% to exactly 75%. The OFS is scheduled to take place on March 17, 2026, for non-retail investors and March 18, 2026, for retail investors.
- Promoter Sagar Cements to divest up to 66,76,843 equity shares via the stock exchange mechanism.
- The stake sale represents 7.24% of the total paid-up equity share capital of Andhra Cements.
- Total promoter holding will decrease from 82.24% to 75% post-completion of the sale.
- The OFS window opens on March 17, 2026, for non-retail bidders and March 18, 2026, for retail participants.
- The primary objective is compliance with Rule 19(2)(b) and 19(A) of Securities Contracts (Regulation) Rules.
Andhra Cements reported a robust 66% year-on-year growth in revenue from operations, reaching ₹110.26 crore in Q3 FY26. However, the company remains deeply in the red, posting a net loss of ₹44.14 crore for the quarter, compared to a loss of ₹43.73 crore in the same period last year. Profitability is severely impacted by high operational costs, with power and fuel expenses alone accounting for over 50% of revenue. Additionally, the parent company Sagar Cements recently reduced its stake to 82.24% via an Offer for Sale to meet public shareholding requirements.
- Revenue from operations increased to ₹110.26 crore in Q3 FY26 from ₹66.33 crore in Q3 FY25.
- Net loss for the quarter stood at ₹44.14 crore, slightly higher than the ₹43.73 crore loss in the previous year.
- Power and fuel expenses surged to ₹55.83 crore in Q3 FY26 from ₹39.33 crore in Q3 FY25.
- Nine-month losses for FY26 widened to ₹115.68 crore compared to ₹102.20 crore in the previous year.
- Promoter Sagar Cements Limited reduced its stake from 90% to 82.24% in January 2026 through an OFS.
Sagar Cements Limited, the promoter of Andhra Cements, has sold 71,48,978 equity shares representing a 7.756% stake in the company. This transaction was executed via an Offer for Sale (OFS) on January 9 and 12, 2026, to comply with SEBI's Minimum Public Shareholding (MPS) requirement. Consequently, the promoter's holding has decreased from 90% to 82.24%, while the public float has increased to 17.76%. The company is still required to further increase public shareholding to reach the mandatory 25% threshold.
- Promoter Sagar Cements sold 7.756% stake (71,48,978 shares) via stock exchange mechanism
- Promoter shareholding reduced from 90% to 82.24% following the sale
- Public shareholding increased from 10.00% to 17.76%
- The sale is part of a regulatory requirement to achieve 25% Minimum Public Shareholding (MPS)
- Further stake sales are expected as the company still needs to dilute another 7.24% to meet SEBI norms
Andhra Cements Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by its Registrar and Share Transfer Agent (RTA) CIL Securities Ltd, confirms the processing of dematerialization requests for the quarter ended December 31, 2025. It verifies that physical share certificates received were mutilated, cancelled, and the names of depositories were updated in the register of members. This is a mandatory procedural filing for all listed companies in India.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- RTA CIL Securities Ltd confirmed all dematerialization requests were processed as per SEBI norms.
- Physical certificates were mutilated and cancelled after due verification by the RTA.
- The name of the depositories has been substituted in the Register of Members within the stipulated time.
Sagar Cements Limited, the promoter of Andhra Cements, has announced an Offer for Sale (OFS) of up to 75,00,000 shares, representing an 8.14% stake in the company. The sale is scheduled for January 9 and 12, 2026, and is intended to help the company meet the SEBI-mandated 25% minimum public shareholding requirement. Currently, the promoter holds a 90% stake, which will reduce to 81.86% following this transaction. While this increases market liquidity, investors should note that further divestments will be required in the future to reach the 75% promoter holding limit.
- Promoter Sagar Cements to divest up to 75,00,000 equity shares, totaling an 8.14% stake
- Aggregate promoter shareholding to decrease from 90.00% to 81.86% post-divestment
- OFS window opens on January 09, 2026, for non-retail and January 12, 2026, for retail investors
- Transaction is aimed at achieving the 25% Minimum Public Shareholding (MPS) as per SEBI norms
- The sale will be conducted through a separate designated window on the BSE and NSE
Andhra Cements Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015. This closure is ahead of the declaration of the company's unaudited financial results for the third quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their relatives until 48 hours after the board meeting where results are approved. The specific date for the board meeting to discuss these results will be announced separately.
- Trading window closure begins on January 1, 2026
- Closure pertains to financial results for the quarter and nine months ending December 31, 2025
- Window to reopen 48 hours after the official declaration of financial results
- Restriction applies to Directors, KMPs, and all designated connected persons
Financial Performance
Revenue Growth by Segment
The company operates in a single business segment (Cement). Revenue was adversely impacted by a decrease in selling prices, leading to a net profit margin decline from -24% in FY24 to -56% in FY25.
Geographic Revenue Split
Not disclosed in available documents, though operations are concentrated around strategically located plants in Andhra Pradesh.
Profitability Margins
Operating Profit Margin (EBITDA/Net Revenue) deteriorated from -2% in FY24 to -8% in FY25. Net Profit Margin fell significantly from -24% to -56% over the same period due to lower realizations.
EBITDA Margin
EBITDA margin stood at -8% for FY25, a 600 bps decline from -2% in FY24, driven by adverse selling prices and increased fuel/power costs.
Capital Expenditure
Historical capital expenditure for H1 FY26 was INR 124.42 Cr, compared to INR 38.93 Cr in H1 FY25, representing a 219% increase in investment in property, plant, and equipment.
Credit Rating & Borrowing
Not disclosed; however, finance costs increased by 14.7% YoY to INR 41.45 Cr in H1 FY26. Non-current borrowings stood at INR 833.13 Cr as of September 30, 2025.
Operational Drivers
Raw Materials
Specific raw materials include limestone, coal, gypsum, and fly ash. Fuel and power costs are major drivers, with significant impacts from regulatory true-up orders.
Capacity Expansion
Current capacity not specified in MTPA; however, the company employs 175 personnel at its cement plant and administrative office. Expansion is targeted through technological innovation and entering new geographies.
Raw Material Costs
Raw material and power costs were impacted by APERC true-up orders issued in October and November 2024 to recover fuel and power costs, leading to exceptional debits in the profit and loss statement.
Manufacturing Efficiency
The company is focusing on technological innovation to improve operational efficiency; however, specific capacity utilization percentages were not disclosed.
Logistics & Distribution
Not disclosed; however, the company notes that strategically located plants help optimize distribution costs.
Strategic Growth
Growth Strategy
Growth is pursued through expansion into new geographies, leveraging strategically located plants for cost optimization, and technological innovations to enhance operational efficiency. The company is also divesting unused land parcels (INR 8.15 Cr) to streamline the balance sheet.
Products & Services
Cement bags sold under the Andhra Cements brand.
Brand Portfolio
Andhra Cements.
Market Expansion
The company plans to facilitate expansion into new geographies using its strategically located manufacturing base.
Strategic Alliances
ACL is a subsidiary of Sagar Cements Limited. It also has significant transactions with RV Consulting Services Private Limited (Promoter Group).
External Factors
Industry Trends
The Indian cement industry is shifting toward sustainable development and technological innovation. ACL is positioning itself to capitalize on these opportunities to remain a preferred brand.
Competitive Landscape
The industry is affected by global and domestic demand-supply dynamics; specific competitor market shares were not provided.
Competitive Moat
The moat is based on strategically located plants that optimize logistics and cost structures. Sustainability depends on maintaining operational efficiency amid volatile input costs.
Macro Economic Sensitivity
Highly sensitive to domestic supply-demand conditions and selling price fluctuations in the cement industry.
Geopolitical Risks
Global supply conditions are cited as a factor that could influence operations and selling prices.
Regulatory & Governance
Industry Regulations
Operations are subject to orders from the Andhra Pradesh Electricity Regulatory Commission (APERC) regarding fuel and power cost true-ups, which significantly impact profitability.
Taxation Policy Impact
Not disclosed; the company reported a loss before tax of INR 71.54 Cr for H1 FY26.
Legal Contingencies
The company is dealing with regulatory orders from APERC (dated October and November 2024) for cost recoveries. Specific values for other pending court cases were not disclosed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the volatility of cement selling prices, which led to a 3200 bps drop in net profit margin. Debt-equity ratio increased from 2.27 to 5.24, signaling high financial risk.
Geographic Concentration Risk
High concentration in Andhra Pradesh, as evidenced by the impact of state-specific electricity regulatory orders.
Third Party Dependencies
Dependency on the state power grid and regulatory approvals for fuel/power pricing.
Technology Obsolescence Risk
The company is addressing technology risks through innovation to improve operational efficiency.
Credit & Counterparty Risk
Debtors turnover ratio increased from 26 days to 46 days (77% increase), indicating a potential slowdown in receivable collections and increased credit risk.