Sell

Near-term profitability is likely to remain constrained by elevated input costs and subdued pricing in key regions. Nonetheless, a post-monsoon recovery in demand, improving plant utilization, and commissioning of new capacities are expected to support a gradual earnings rebound.

KNR Constructions (KNR) reported a revenue of INR 4.8bn in Q1FY26, down to a five-year trough. The lukewarm execution was primarily rooted in a smaller executable order book (OB).

IRCON reported a subdued performance for Q1FY26, marked by a 21.9% YoY decline in consolidated revenue to Rs17bn and a 26.8% fall in net profit to Rs1.6bn. On a sequential basis, the revenue also contracted sharply by 47.7%, reflecting execution delays linked to project mobilization challenges and seasonal impact. Despite the steep revenue drop, the company delivered a robust EBITDA margin of 17.1%, improving 214 bps YoY and 695 bps QoQ. EPS for the quarter came in at Rs1.75, down from Rs2.38 in Q1FY25. While the decline in execution volume was expected due to monsoons and tendering...

We maintain our SELL rating on the stock

India Cements (ICEM) reported EBITDA of INR819m (21% beat) in 1QFY26 vs. operating loss of INR310m in 1QFY25. The improvement in operating performance was led by cost control measures, as opex/t was down ~15% YoY in 1QFY26.

In FY25, the company's order book declined by ~40% YoY to Rs 10,527cr due to a muted order wins for the last two years. The management expects a traction in new orders from the roads and non-road segments from Q2FY26 onwards and is...

We maintain our SELL rating on the stock and roll over our estimates to FY27.

Modest revenue growth YoY at 6% dragged by tepid volume growth; flat YoY as JKLC chases higher realisations that gained ~5%

Quarterly Update Q4FY25

Q4 revenue declined ~11%/21% YoY/QoQ, as price pressure impacted realisations by 4% and profitability severely (down by 83% YoY)

SRCM commissioned 3mtpa GU at Etah (UP) and 3.4mtpa GU at Baloda Bazar (CG), taking its total cement production capacity to 62.8mtpa. SRCM delivered robust operating performance in Q4FY25 on the back sharp 4.5% QoQ jump in NSR while volumes grew at moderate pace, 3.3% YoY to 9.84mt. SRCM continued to adopt value over volume strategy in FY25 and achieved industry leading EBITDA/t however volume remained flattish....

India Cements (ICEM), following the recent change in management (the first quarter after UTCEM took control), has reported an improved performance in 4QFY25. It has reported an EBITDA of INR5m (vs. an estimate of an operating loss of INR1.2b) in 4QFY25.

Revenue declined by 5% YoY (+30% QoQ) to ~Rs 41bn, as volume growth stunted and realisations fell despite slower volume gains

Double-digit revenue decline YoY by 13% dragged by lower volume growth, down 5%, and weak realisations that fell by 10%

Q3 revenue declined ~6%/3% YoY/QoQ as pricing pressures impacted realisations and profitability severely (down by 10%/5% YoY/QoQ)

India Cements (ICEM) reported an operating loss of INR1.9b (vs. estimated loss of INR854m) in 3QFY25. Sales volume increased ~5% YoY to 2.1mt (~2% below our estimate), while blended realization declined ~20% YoY to INR4,333 (~5% below our estimate).

DALBHARA's presence in East and South India may be hit by excess supply; we factor in 1% price hikes in FY26/FY27 after a dent in FY25