Shree Digvijay Cement Q2 Results

Revenue rose to Rs 279.31 crore; Company reports a net loss of Rs 16.27 crore.

Reader Takeaway: Revenue growth was overshadowed by rising logistics costs and annual plant maintenance, resulting in a negative EBITDA margin.

What just happened

Shree Digvijay Cement Company Ltd reported a net loss of Rs 16.27 crore for the quarter ended September 30, 2026, a significant downturn from the Rs 10.23 crore net profit reported in the same quarter last year. The company's EBITDA also turned negative, recorded at Rs 1.30 crore for the quarter, compared to a profit of Rs 20.48 crore in September 2025.

Why this matters

The results highlight a challenging operating environment where revenue gains are failing to keep pace with soaring input costs. While revenue grew to Rs 279.31 crore from Rs 161.35 crore last year—partly driven by new distribution agreements—the inability to convert this volume into operating profit signals significant margin compression caused by fuel and freight inflation.

Operational Performance

The company sold 5.10 lakh tonnes of cement in the quarter. This volume includes 212,549 MT of cement supplied under the Brand Usage and Distributorship Agreement (BDA) with Hi-Bond Cement (India) Private Limited. The plant also underwent a planned annual shutdown during the quarter, which temporarily hampered production efficiency.

Risks to watch

Management cited geopolitical uncertainty as a primary driver of supply chain disruptions, which pushed up fuel and packaging expenses. The core risk for shareholders remains whether these input costs can be passed on to the market or if structural cost management initiatives are sufficient to return the firm to profitability in the upcoming quarters.

What to track next

Investors should look for updates on the stabilization of EBITDA margins post-shutdown and whether the expanded distribution network through the Hi-Bond agreement starts contributing to the bottom line in the second half of the fiscal year.