Star Cement Achieves Record Annual EBITDA, Eyes PAN-India Growth

Star Cement recorded its highest-ever annual EBITDA of ₹944 crore for FY26, a significant increase from ₹589 crore in FY25. The company reported a Profit After Tax (PAT) of ₹390 crore for FY26, up from ₹169 crore in the previous fiscal year.

Reader Takeaway: Record EBITDA and capacity expansion signals strong growth; fuel cost volatility remains a watch point.

What just happened

Star Cement announced robust financial results for the fourth quarter and the full fiscal year FY26. The company posted its highest-ever annual EBITDA and delivered a strong quarterly performance, supported by increased sales volume and the recent commissioning of its Cachar Grinding Unit in Assam.

Why this matters

This performance indicates Star Cement's improved operational efficiency and its ability to capitalize on market demand. The company's strategic vision to transition into a PAN-India player, backed by aggressive capacity expansion plans, signals a long-term growth trajectory that could create value for shareholders.

The backstory

For FY26, Star Cement's revenue grew to ₹3,776 crore from ₹3,163 crore in FY25. In Q4 FY26, revenue stood at ₹1,174 crore, up from ₹1,052 crore in Q4 FY25. The company has been steadily increasing its production capacity, with the Cachar unit becoming operational in February 2026.

What changes now

The company is embarking on an ambitious plan to almost double its cement capacity to 16.7 MTPA by FY29. This includes upcoming grinding units in Bihar (FY28), Rajasthan, and Haryana (FY29). A CAPEX of approximately ₹700 crore is planned for FY27.

Risks to watch

Management has flagged potential fuel cost increases in Q1 FY27 due to coal availability issues. Logistics costs, while rationalized sequentially, remain susceptible to disruptions. The company aims to manage its expansion while keeping Net Debt/EBITDA below 1.5x.

Peer comparison

(No specific peer data was provided in the filing.)

Context metrics (time-bound)

• FY26 Annual EBITDA: ₹944 crore (up 60% YoY)
• FY26 Annual PAT: ₹390 crore (up 131% YoY)
• Q4 FY26 Revenue: ₹1,174 crore
• Q4 FY26 Sales Volume: 17.33 lac tons
• Q4 FY26 PAT: ₹147 crore
• FY27 CAPEX: ₹700 crore (estimated)
• Target Capacity by FY29: 16.7 MTPA

What to track next

Investors will be looking for updates on the progress of the new grinding units, particularly in Bihar and Rajasthan. Monitoring input cost trends and the company's ability to manage logistics will be crucial. The execution of the capacity expansion plan and maintaining financial discipline will be key performance indicators.