Star Cement: Business Overview & Financial Analysis
Star Cement is the leading cement manufacturing enterprise in North East India, headquartered in Kolkata, West Bengal. Promoted by Sajjan Bhajanka, Sanjay Agarwal, and Hari Prasad Agarwal, the company produces high-grade Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC), and Portland Slag Cement (PSC) under the brand name 'Star Cement'. Operating integrated clinkerization plants in Meghalaya alongside grinding units in Assam, Meghalaya, and West Bengal, the company serves retail, infrastructure, and commercial clients across North East and Eastern India.
Plant Locations & Installed Capacity Scale of Star Cement (Q1 FY2027)
Star Cement operates integrated clinkerization units and grinding plants strategically located across Meghalaya, Assam, and West Bengal to serve North East and Eastern Indian markets.
- Total Installed Cement Grinding Capacity Base – 5.70 Million Tonnes Per Annum (MTPA)
- Total Installed Clinker Capacity Base – 2.80 Million Tonnes Per Annum (MTPA)
- Lumshnong Integrated Unit Capacity (Meghalaya) – 2.80 MTPA Clinker / 1.00 MTPA Grinding
- Guwahati Grinding Unit Capacity (Assam) – 2.00 MTPA Cement Grinding
- Gopi Bander Grinding Unit Capacity (Meghalaya) – 0.70 MTPA Cement Grinding
- Siliguri Grinding Unit Capacity (West Bengal) – 2.00 MTPA Cement Grinding
- Total Captive Power Generation Base – 51 MW Thermal Power + 12 MW Waste Heat Recovery System (WHRS)
Operating integrated plants in Lumshnong alongside grinding units in Guwahati and Siliguri provides efficient regional logistics coverage across Assam, West Bengal, and Meghalaya. Captive thermal power plants and WHRS units satisfy over 70% of total internal electricity requirements.
Market Footprint & Geographic Sales Mix of Star Cement (FY2026)
Star Cement maintains a dominant market share across the North East region while expanding its distribution footprint into Eastern Indian markets.
- North East Region Sales Share – 74.5% of Total Sales Volume
- East India Region (West Bengal & Bihar) Sales Share – 25.5% of Total Sales Volume
- Estimated Market Share in North East India – ~25.0% dominant market share
- Total Active Retail Dealer Touchpoints Network – 2,400+ authorized dealers
- Total Retail Sub-Dealer & Retailer Footprint – 12,000+ retail touchpoints
North East India generates nearly three-fourths of overall sales volume, supported by a network of 2,400+ primary dealers across seven states. Expanding grinding capacity in West Bengal and Bihar accelerates penetration into high-demand Eastern Indian markets.
Product Portfolio & Sales Volume Mix of Star Cement (FY2026)
Star Cement manufactures specialized blended cement variants catering to housing construction, infrastructure projects, and coastal building applications.
- Portland Pozzolana Cement (PPC) Volume Share – 82.5% of Total Sales Volume
- Ordinary Portland Cement (OPC) Volume Share – 12.8% of Total Sales Volume
- Portland Slag Cement (PSC) Volume Share – 4.7% of Total Sales Volume
- Trade (Retail Housing) Segment Share – 84.0% of Total Dispatches
- Non-Trade (Institutional & Infrastructure) Segment Share – 16.0% of Total Dispatches
- Core Retail Products Portfolio – Star Cement, Star Concrete, and Star Anti-Rust Cement
Blended cement variants account for over 87% of total product sales, yielding higher gross margins and lower clinker consumption factors. Retail trade dispatches generate 84% of turnover, providing strong pricing power and stable cash flow generation.
Operational KPIs & Cost Per Tonne Metrics of Star Cement (Q1 FY2027)
Star Cement tracks quarterly sales volumes, net realisations, raw material expenses, power and fuel costs, and freight charges on a per-tonne basis.
- Total Quarterly Cement Sales Volume – 1.18 Million Tonnes (+12.5% YoY)
- Total Quarterly Clinker Production Volume – 0.72 Million Tonnes
- Average Blended Revenue Realisation Per Tonne – Rs 6,280 / tonne
- Operating EBITDA Per Tonne – Rs 1,185 / tonne (+14.2% YoY)
- Raw Material Cost Per Tonne – Rs 1,120 / tonne
- Power & Fuel Cost Per Tonne – Rs 1,420 / tonne (-8.5% YoY)
- Freight & Logistics Cost Per Tonne – Rs 1,280 / tonne
Quarterly sales volume reached 1.18 million tonnes, supported by infrastructure demand across Assam and West Bengal. Operating EBITDA per tonne expanded to Rs 1,185 due to lower coal prices and higher captive WHRS power utilization.
Latest Quarterly Financial Performance of Star Cement (Q1 FY2027)
Star Cement delivered top-line revenue expansion and operating profit growth during the first quarter of FY2027.
- Consolidated Revenue from Operations – Rs 741.04 crore (+11.8% YoY)
- Consolidated Operating EBITDA – Rs 139.83 crore (+28.5% YoY)
- Operating EBITDA Margin – 18.87% (+245 bps YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 78.50 crore (+32.1% YoY)
- Blended EBITDA Margin – 18.87%
First-quarter operating revenue rose 11.8% year-on-year to Rs 741.04 crore, driven by a 12.5% volume expansion in cement dispatches. Consolidated Net Profit After Tax reached Rs 78.50 crore, while operating EBITDA margins expanded to 18.87%.
Consolidated Annual Financial Performance of Star Cement (FY2026)
Star Cement achieved full-year turnover expansion and operating profit growth for full financial year FY2026.
- Full Year Consolidated Revenue from Operations – Rs 2,850.40 crore (+9.5% YoY)
- Full Year Consolidated Operating EBITDA – Rs 525.20 crore (+14.8% YoY)
- Full Year Operating EBITDA Margin – 18.42% (+85 bps YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 285.40 crore (+18.2% YoY)
- Full Year Total Cement Sales Volume – 4.52 Million Tonnes (+10.2% YoY)
- Full Year Average EBITDA Per Tonne – Rs 1,162 / tonne
Full-year operating revenue reached Rs 2,850.40 crore in FY2026, as consolidated Net Profit After Tax expanded 18.2% to Rs 285.40 crore. Operational execution was driven by retail trade demand, captive power availability, and freight optimization.
Balance Sheet Structure & Financial Health Ratios of Star Cement (Q1 FY2027)
Star Cement maintains a conservative balance sheet structure supported by low financial debt gearing and strong liquid cash reserves.
- Net Debt to Equity Ratio – 0.12x (Low Debt)
- Total Gross Debt Base – Rs 450.00 crore
- Total Cash, Bank Balances & Surplus Liquid Investments – Rs 280.00 crore
- Total Consolidated Net Worth Base – Rs 2,650.00 crore
- Return on Capital Employed (ROCE) – 15.8%
- Return on Equity (ROE) – 11.2%
Consolidated net worth expanded to Rs 2,650.00 crore as of June 30, 2026, with net debt to equity holding low at 0.12x. Cash reserves and strong operating cash flows cover ongoing project capital expenditures without stretching debt ratios.
Capex & Capacity Expansion Roadmap of Star Cement (FY2027–FY2028)
Star Cement is executing a major multi-year capital expenditure roadmap to double its clinker and cement grinding capacities in Eastern India.
- Total Planned Capex Outlay Guidance – Rs 2,200.00 crore across FY2027–FY2028
- New Clinker Capacity Target (Lumshnong, Meghalaya) – Adding 3.30 MTPA clinker line (Taking total clinker to 6.10 MTPA)
- New Grinding Capacity Target (Guwahati & Bihar) – Adding 4.00 MTPA grinding capacity (Taking total cement to 9.70 MTPA)
- WHRS Capacity Addition Target – Adding 12 MW WHRS power plant (Taking total WHRS to 24 MW)
- Expected Commissioning Timeline – Phased commercial commissioning starting Q4 FY2027 through FY2028
- Funding Strategy – Funded via 70% internal cash accruals and 30% long-term debt facilities
Capital expenditure outlays will scale cement grinding capacity from 5.70 MTPA to 9.70 MTPA and clinker capacity to 6.10 MTPA by FY2028. Adding 12 MW WHRS capacity lowers grid power reliance and reduces overall thermal power expenses.
Strategic Outlook & Management Commentary of Star Cement (Q1 FY2027 Concall)
Management guidance outlines strategic priorities centered on capacity expansion, market share defense in North East India, and margin optimization.
- Management targets achieving a 15%–18% annual cement volume CAGR over the FY2027–FY2029 period.
- Consolidated operating EBITDA per tonne is guided to sustain above Rs 1,150–1,250 / tonne through WHRS power scaling.
- Market share in North East India is targeted to be preserved at ~25.0% while expanding Eastern market dispatches.
- Captive green energy share is projected to expand to 35% of total power consumption post-WHRS commissioning.
- Capital allocation strategy will maintain Net Debt to Equity under 0.35x during the ongoing Rs 2,200 crore capex phase.
Management anticipates strong infrastructure spending and rural housing construction in North East and Eastern India to absorb new grinding capacity. Operational focus centers on commissioning the 3.30 MTPA clinker line, expanding dealer networks in West Bengal and Bihar, and maintaining balance sheet strength.
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Sources & References
- Star Cement Q1 FY2027 Consolidated Financial Results & Stock Exchange Outcomes
- Star Cement Investor Presentation & Corporate Filings
- BSE & National Stock Exchange of India (NSE) Corporate Filings for Star Cement
- Ticker Finology Star Cement Page
Disclaimer
The information presented above on Star Cement has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Star Cement page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.