1. At a Glance
Once a 1936-era cement kingpin, Andhra Cements is now operating on thin margins and a mountain of past mistakes. Q1 FY26 loss? ₹29.6 Cr. And that’s after finally restarting production in 2023! Plants are still struggling, debt is bloated, and ROE is in the Mariana Trench.
2. Introduction with Hook
If cement stocks were school kids, Andhra Cements would be the one repeating the same grade since 2019 — with occasional hope after tuition (a.k.a. the resolution plan).
- Q1 FY26: ₹100 Cr revenue
- Net Loss: ₹29.6 Cr
- ROE: -68.4%
- Only one of two plants running — and that too, part-time
This is the tale of a fallen giant trying to turn around while riding a cement truck with a flat tyre.
3. Business Model (WTF Do They Even Do?)
They manufacture cement. That’s it.
Their plants:
- Sri Durga Cement Works (Guntur) – operational again post-resolution in April 2023
- Visaka Cement Works (Nalgonda) – shut, caught in city limits + logistic nightmares
Current production is mostly grinding operations, not full clinker-to-bag manufacturing. Not exactly a great start after a 3-year shutdown.
4. Financials Overview
Q1 FY26
- Revenue: ₹100 Cr
- Net Loss: ₹29.6 Cr
- OPM: 7%
- EPS: ₹-3.21
FY25 (Full Year)
- Revenue: ₹274 Cr
- Net Loss: ₹158 Cr
- EPS: ₹-17.14
- ROCE: -10.5%
- ROE: -68.4%
