KCP Ltd Q2FY26 – Cement, Sugar & Rockets: The Sweet-Smelling, Heavy-Lifting, Cement-Loving Conglomerate That Just Won’t Sit Still

1.At a Glance

KCP Ltd — one of those rare Indian industrial houses that manufactures everything from cement to sugar torocket hardware for ISRO. Yes, this is a company that can fix your house, sweeten your tea, and possibly help launch you to Mars. As of20 November 2025, KCP’s stock closed at₹183, with amarket cap of ₹2,355 crore, trading at aP/E of 15x, which is actually modest in a cement world where peers like Shree Cement and Ultratech are doing yoga at 55x and 47x respectively.

The company has seen a3-month return of -10.6%and6-month return of -18.6%, but before you think it’s falling apart — its cement margins are improving, its Vietnam sugar arm just sent a₹35.1 crore dividend, and it’s literally working onrocket components for ISRO.

From theBhagavad Gita, “Karmanye vadhikaraste ma phaleshu kadachana” — “Do your duty, don’t obsess over the outcome.” That’s basically KCP’s operating mantra: make cement, crush sugar, cast rocket hardware, and let the market figure out what to do with it.

Let’s see how this multi-headed Andhra-based hydra of cement, sugar, heavy engineering, and hospitality fared in its latest results.

2.Introduction – Cement, Sugar, Rockets & Chaos

Once upon a time, in the industrial plains of Andhra Pradesh, a company decided that manufacturing one thing wasn’t enough. Thus began the saga ofKCP Ltd— a 1941-era conglomerate that went from making sugar to making cement, and now, apparently, parts for ISRO rockets.

This company’s business card reads like an engineering student’s confusion list:Cement. Sugar. Heavy Engineering. Power. Hotel. Hydel. Wind. Solar. Biomass. Rockets. (Yes, actual rockets).

If diversification was a sport, KCP would’ve been India’s gold medalist by now. The cement business (still the crown jewel) contributes56% of FY24 revenue, while itsVietnam sugar armcontributes40%. The rest — engineering and hospitality — make up the garnish.

But don’t let the sugar fool you. This is an industrial beast. TheMuktyala cement plantalone churns out premium-grade cement by the tonne, while theVietnam unit crushes 11,000 tonnes of sugarcane per day— that’s enough sweetness to give an entire continent diabetes.

And just when you think they’ve maxed out their product range, they go and makeflight hardwarefor ISRO rockets. Because, why not?

3.Business Model – WTF Do They Even Do?

Let’s decode the KCP buffet platter:

1. Cement Business (~56% of FY24 Revenue):The company’s two cement plants atMacherlaandMuktyala(Andhra Pradesh) produce4.3 MTPAof cement. Products includeOrdinary Portland, Pozzolana Portland, andRapid Hardeningcements. They even have apacking plant at Arakkonam (0.3 MTPA), which sounds like a footnote but saves crores in logistics. Cement margins have expanded in FY25 thanks to lower fuel costs and higher realizations — the company’s operating profit margin hit14% in Q2FY26, up from 13% last year.

2. Sugar Business (40% in FY24):Run throughKCP Vietnam Industries, this arm has acrushing capacity of 11,000 TPDand exports refined sugar. It also powers a30 MW co-generation plant, and the company is working on a60 MW biomass power expansion. Recently, the subsidiary paidUSD 4 million (₹35.1 crore)dividend — not bad for something started as a diversification bet in 1999.

3. Heavy Engineering (~3%):Started in1955, this division builds mammoth equipment for cement, sugar, mining, power, and even aerospace sectors. The customer list includesISRO, NTPC, BHEL, and a few foreign names fromVietnam, Korea, and Indonesia.

4. Hospitality (1%):They ownMercure Hyderabad KCP, managed byAccor Hotels, with 128 rooms, 5 meeting spaces, 3 restaurants, and likely a bar where tired engineers drink after making rocket parts.

5. Power:Earlier contributed ~3%, but now primarily captive. With~34 MWacross hydel, wind, and solar, KCP runs partly on renewable karma.

Basically, KCP is that industrious friend who can fix your house, cook your dinner, and drop you at the airport — in one day.

4.Financials Overview – Q2FY26