1. At a Glance – Zombie Cement Wakes Up
Once upon a time (read: Feb 2020), Andhra Cements Ltd was a fully shut cement company with zero production, angry lenders, and NCLT knocking on the door like a recovery agent at 6 a.m. Fast forward to FY26, and this 1936-born cement veteran is technically alive, breathing clinker dust again, and reporting ₹110 Cr quarterly sales.
Market cap? ~₹554 Cr.
Current price? ~₹59.7.
Debt? A casual ₹931 Cr.
ROE? A spiritual number at -68.4%.
ROCE? Also negative, because why not.
The company restarted operations at its Dachepalli plant post-resolution, expanded clinker capacity to 2.3 MTPA, grinding to 3.0 MTPA, installed a 6-stage preheater, and said, “Hum wapas aa gaye.”
But profits? Still missing. EPS? -₹4.79 in Q3 FY26. Balance sheet? Looks like it survived a cyclone and a bank strike simultaneously.
So the big question: Is this a phoenix, or just a zombie with better PR?
2. Introduction – From NCLT to Cement Bags
Let’s rewind. Andhra Cements didn’t just struggle — it collapsed with style. From Feb 2020 to March 2023, both cement units were shut. No production. No revenue. Only interest ticking like a bomb.
Then entered Sagar Cements Limited, the white knight (or landlord, depending on mood). Under the NCLT-approved resolution plan (Feb 16, 2023), Sagar Cements pumped in ₹322.25 Cr, took 95% ownership, and revived the company.
Production restarted in April 2023 at Sri Durga Cement Works, Dachepalli. The Visaka Cement Works? Still stuck inside city limits like a factory built before Google Maps existed. Logistics nightmare.
FY25–FY26 is basically Andhra Cements’ rehab phase:
- Restart operations
- Fix equipment
- Expand capacity
- Service debt
- And pray cement prices behave
But here’s the twist: despite sales revival, losses continue, interest coverage is negative, and debt-to-equity is a terrifying 12.2x.
So… revival story? Yes.
Financial recovery? Abhi nahi.
3. Business Model – WTF Do They Even Do?
At its core, Andhra Cements does one simple thing: make cement and clinker. No fancy green branding. No 50 SKUs. No influencer reels. Just grey powder.
Revenue mix (FY23):
- Cement & clinker sales: ~96%
- Other operating income: ~1%
- Profit on sale of plant & equipment: ~3% (yes, they sold stuff to survive)
Plants:
- Sri Durga Cement Works (Dachepalli) – operational, expanded, main hope
- Visaka Cement Works – non-operational due to city limits & logistics
Capacity post-expansion:
- Clinker: 2.30 MTPA
- Grinding: 3.00 MTPA
This is a single-region, single-product, high-debt cement play. No pan-India dominance. No premium pricing. Just survival economics.
Question for you: Can a cement company survive on revival vibes alone?
4. Financials Overview – Quarterly Reality Check
