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.”
