Sagar Cements Limited, incorporated on January 15th, 1981, is a prominent Indian cement manufacturer engaged in the production and sale of cement. The company commenced operations in 1985, initially focusing on clinker and Ordinary Portland Cement (OPC), and has since adopted advanced dry processing kiln technology. With an installed production capacity of 10.85 MTPA, Sagar Cements is recognized as one of India's leading cement producers. The company boasts a strong presence in the Southern markets and is steadily expanding its footprint into the Central and Eastern regions of India, strategically positioned to meet the growing demand for building materials across various geographies.
Sagar Cements Ltd has a market capitalization of ₹3,166 crore. As of July 10, 2025, the company's financial performance has shown mixed results with some operational challenges. While reporting a revenue of ₹2,258 Cr for the latest financial period, the company experienced negative profitability with a profit of -₹217 Cr.
Key Financial Metrics (as of recent reporting periods):
- Operating Revenue (Trailing 12 Months): ₹2,308.31 Cr
- Annual Revenue Growth: 4%
- Pre-tax Margin: -3%
- Return on Equity (ROE): -2%
- Debt to Equity Ratio: 56% (considered slightly higher)
Promoter holding in Sagar Cements Ltd increased to 48.33% as of March 2025, up from 48.31% in June 2024. However, it's noteworthy that promoters have pledged 39.05% of the total equity as of March 2025.
The company's diverse product range includes Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement, Composite Cement, Ground Granulated Blast-furnace Slag (GGBS), and Sulphate Resistant Cement (SRC). Products like OPC, SRC, and IRS T-40 grade cement are marketed under the Sagar Priya brand.
The company's SRC, conforming to IS-12330 standards, is ideal for environments like coastal areas, harbours, dockyards, bridges, sewerages, and effluent-carrying drains. Slag cement offers superior resistance to sulphates and acidic conditions compared to OPC, making it suitable for marine works and coastal applications.
Sagar Cements has significantly expanded its production capacity, increasing it from 5.8 MTPA to 10.50 MTPA in FY23. During FY 2024-25, several key projects were commissioned, including a 3 MTPA plant at Mattampally, a 1.25 MTPA plant at Gudipadu, a 1.5 MTPA plant at Bayyavaram, a 1 MTPA plant at Jeerabad, and a 1.5 MTPA grinding unit at Jaipur.
The company operates multiple manufacturing facilities strategically located across India:
- Gudipadu, AP: 1.25 MTPA capacity and 25 MW power generation
- Bayyavaram, AP: 1.50 MTPA capacity and 8.42 MW power generation
- Mattampally, Telangana: 3.00 MTPA capacity and 28.13 MW power generation
The company's presence extends to five operational locations, encompassing its grinding units and recently commissioned facilities at Jeerabad (Madhya Pradesh) and Jajpur (Odisha). Self-reliance in power generation, with a total capacity of 61.5 MW, provides significant operational advantages and cost efficiencies.
Regionally, Andhra Pradesh and Telangana account for approximately 60% of Sagar Cements' sales, followed by Tamil Nadu (16%) and Karnataka (9%). The company is actively developing its presence in the faster-growing Eastern and Central markets, supported by the recent commissioning of new 2.5 MT capacity.
Recent greenfield expansions in Madhya Pradesh and Odisha have strategically positioned Sagar Cements to cater to the rising demand for building materials in Central and Eastern India, diversifying its market presence beyond its traditional southern strongholds.
In March 2023, Sagar Cements acquired a 95% stake in Andhra Cements Limited (ACL) through an Insolvency and Bankruptcy Code process, making ACL a subsidiary of the company. Following this acquisition, the Dachepalli Unit resumed its grinding operations.
On June 6, Sagar Cements announced the submission of its FY 2024-25 Integrated Annual Report and the scheduling of its Annual General Meeting (AGM) for June 30, 2025. The company continues to prioritize operational improvements and capacity utilization optimization.
The leadership of Sagar Cements Limited includes Mr. K V Vishnu Raju as the Chairman and Mr. S Anand Reddy as the Managing Director. The company is committed to corporate governance, built on the pillars of fairness, transparency, and equity, which are integral to its daily operations and its aim to create long-term value for all stakeholders.
Sagar Cements has set an ambitious target to become Net Zero by the year 2050, actively implementing measures to minimize its carbon footprint and maximize resource efficiency. Management remains optimistic about the future, targeting a volume of 6.4 to 6.5 million tonnes for FY26, supported by government infrastructure initiatives.
Despite facing current industry challenges, Sagar Cements is observing early signs of recovery in the cement sector, driven by increased construction activity and rural demand. Although the company experienced a 16% revenue decline in Q3 FY25, its strategic positioning across multiple markets and ongoing capacity expansions provide a solid foundation for future growth as market conditions improve.
