Mangalam Cement Ltd Q2 FY26: From Pet Coke Problems to Power Plays — The ₹5,236 Lakh Plot Twist of a B.K. Birla Veteran

1. At a Glance

Mangalam Cement Ltd just dropped its Q2 FY26 unaudited results, and oh boy — this one’s got everything: Dubai drama, a ₹5,236 lakh half-year profit, and an ongoing romance with Rajasthan limestone. Trading at ₹770 per share (as of 7 Nov 2025), the stock carries a modest market cap of ₹2,116 crore. ROE? Just 5.7%. ROCE? 9.9%. P/E? A cheeky 27.4 — basically paying champagne prices for soda margins.

Revenue for H1 FY26 hit ₹86,699 lakh (₹866.9 crore), and PAT stood at ₹5,236 lakh (₹52.36 crore), marking a comeback story after years of kiln drama and coal chaos. From installing 11 MW of waste heat recovery to flirting with solar PPAs, this cement veteran is suddenly acting like an ESG influencer. But can “Birla Uttam Cement” grind it out in a world ruled by Ultratech, Shree, and Ambuja? Keep reading — this one’s got all the masala.

2. Introduction – The Cement Saga of Rajasthan’s Coolest Kiln

Mangalam Cement, a proud B.K. Birla Group descendant, is that middle-aged relative at the cement family reunion — not as flashy as UltraTech, not as jacked as Shree Cement, but full of stories, experience, and a surprising Dubai side hustle.

Founded in 1976, this company has been through it all: limestone dust, GST penalty drama, water usage violations, and even an insurance claim saga over undelivered petroleum coke worth $5.37 million. When it rains, it pours — and when it pours, MCL probably measures it in cement bags.

Yet, the company still manages to show up each quarter, produce around 44 lakh tonnes of cement a year, and keep 1,200+ dealers humming across Uttar Pradesh, Rajasthan, and Madhya Pradesh. Think of it as that reliable family ambassador car: it may not win races, but it won’t abandon you on NH48 either.

In FY25, the company smartly leaned on its captive limestone mines and waste heat recovery plant to reduce costs. It even opened a Dubai branch to buy pet coke and coal — because why buy from India when you can take your procurement global, right? It’s not every day that a smallcap cement maker gets an international shopping mall.

3. Business Model – WTF Do They Even Do?

Mangalam Cement manufactures cement. Period. But not just any cement — theBirla Uttambrand of OPC, PPC, and clinker — which your friendly neighborhood contractor might swear by (unless he’s getting an UltraTech commission).

Here’s how the ecosystem works:

• Raw Material:Captive limestone mines feed about 90% of the plant’s need. Because hauling limestone from afar is like buying pani puri from a mall — unnecessarily expensive.
• Power:With 35 MW thermal, 11 MW waste heat recovery, and 14 MW wind power, MCL could almost start a renewable YouTube channel.
• Manufacturing:Two key plants — Morak (Rajasthan) and Aligarh (Uttar Pradesh) — together churn out 4.4 million tonnes of cement and 2.7 million tonnes of clinker annually.
• Distribution:Over 1,200 dealers, 2,750 sub-dealers, and 63 sales promoters — enough to make even Big Bazaar nostalgic.

The company focuses on blending fly ash to make cheaper, greener PPC cement. Sustainability or cost-cutting? You decide. Either way, they plan to hit 80% fly ash cement in total production soon.

But here’s the real kicker — MCL’s market geography is as uneven as your house plaster job:

• Uttar Pradesh: 43%
• Rajasthan: 32%
• Madhya Pradesh: 18%
• Delhi + others: 7%

Basically, the northern heartland is Mangalam’s playground. No south Indian or coastal ambitions yet — because hauling cement over 800 km costs more than cement itself.

4. Financials Overview

Let’s dissect the recent quarter — Q2 FY26 (Sep 2025) — with our signature EduInvesting microscope:

Annualised EPS = 7.31 × 4 = ₹29.24At CMP ₹770 →P/E = 26.3×

Not cheap, not crazy. Let’s call it “Cement with Confidence Pricing”.

Commentary:Sales are flattish over the