1. Opening Hook
While most mid-cap cement firms were still praying for the monsoon to end, Sanghi Industries turned its desert into a fortress. Under the Adani umbrella, the once-struggling plant from Gujarat is now being repurposed into a cost-leadership machine. The management dropped numbers faster than a cement bag off a truck—kiln fuel costs down to ₹1.60 per kcal, EBITDA rising, and utilization set to jump 10%.And if you thought this was just another boring cement call, think again—AI is running kilns, gen-Z engineers are manning them, and Adani’s brand has officially entered the bag. Read on — it gets both futuristic and funny.
2. At a Glance
- Volumes up 20% YoY:Sanghi finally found its missing mojo under Adani’s wing.
- EBITDA per ton ₹1,060 (Group Consolidated):Cement margins so smooth they could pave highways.
- Costs down 5% YoY:Efficiency is the new religion.
- Green Power at 33%:Cement, but make it ESG.
- PAT up 364% (Consol):Tax write-back or divine blessing — who cares, it’s money.
- Target Cost ₹4,000/ton by FY26:CFO’s stone-cold promise.
- Debt-Free:Cemented balance sheet, literally.
3. Management’s Key Commentary
“Sanghi has the potential to become one of the lowest-cost clinker plants in the country.”(Translation: Give us a few quarters, and we’ll make Ambuja jealous.) 😏
“Our kiln fuel cost at ₹1.60 per 1,000 kcal including AFR is the lowest in the industry.”(They’ve basically taught coal who’s boss.)
“Debottlenecking will add 15 MTPA capacity at just $48/ton.”(A cementer’s version of a Black Friday deal.)
“We’re adding new clinker lines in Bhatapara and planning one at Sanghi.”(The cement world’s version of opening new battlegrounds.)
“AI will now run our operations via CINOC — Cement Intelligent Network Operations Center.”(Soon ChatGPT might apply for a job there.)
“Sanghi’s utilization to hit 70% in Q3/Q4.”(Translation: Machines finally stopped sulking after Adani’s maintenance overhaul.)
“By FY28, costs will drop to ₹3,650/ton.”(The CFO’s equivalent of calling a no-ball in advance.)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Growth | Comment |
|---|---|---|---|
| Sales Volume | 16.6 MTPA | +20% | The Adani uplift — literal and figurative. |
| Revenue | ₹9,174 cr | +21% | Demand held even as rains played spoilsport. |
| EBITDA | ₹1,761 cr | +58% | Cement margins hardened better than concrete. |
| EBITDA/ton | ₹1,060 | +32% | Industry’s new benchmark. |
| PAT | ₹2,302 cr | +364% | The tax fairy showed up. |
| Fuel Cost | ₹1.60/kcal | -5% | Coal obeys Adani’s spreadsheets. |
| Capacity Utilization | 65–67% | +10% | Room for more cement dust. |
| Capex Spend | ₹1,400 cr (Q2) | — | Expanding faster than housing projects. |
Even with monsoons and maintenance, Sanghi’s getting cementitious with profits.
5. Analyst Questions
Q:“Will other expenses stay low despite Q2 being a maintenance quarter?”A:“Lower ad costs and better media mix.”(Read: Fewer billboards, more algorithms.)
Q:“What caused ₹2,000 crore working capital increase?”A:“Receivables, coal inventory, and spare parts buildup.”(Translation: We’re hoarding wisely.)
Q:“Why expand so fast if utilization is low?”A:“We’re building ahead of demand.”(In Adani-speak, that means empire-building.)
Q:“Will ₹4,000/ton cost target hold?”A:“Yes. Take it as March-end gospel.”(Straight from the CFO’s cement tablets.)
6. Guidance & Outlook
Management eyesdouble-digit volume growthfor multiple quarters, even as the industry crawls at 4%. Sanghi’s utilization is
