APCL - Anjani Portland
📢 Recent Corporate Announcements
Anjani Portland Cement Limited (APCL) reported a weak performance for Q3 FY26, with consolidated net losses widening to ₹18.56 crore from ₹8.58 crore in the same quarter last year. Consolidated revenue from operations declined 13.1% YoY to ₹125.95 crore, down from ₹145.00 crore. Standalone operations also remained in the red with a net loss of ₹5.61 crore. High operational costs, particularly power and fuel at ₹37.79 crore, and finance costs of ₹8.78 crore continue to impact the company's profitability.
- Consolidated revenue from operations fell 13.1% YoY to ₹125.95 crore in Q3 FY26.
- Consolidated net loss widened significantly to ₹18.56 crore versus a loss of ₹8.58 crore in Q3 FY25.
- Standalone revenue stood at ₹71.11 crore, a decline from ₹82.68 crore in the year-ago period.
- Subsidiary Bhavya Cements Private Limited contributed ₹54.84 crore to revenue but posted a loss of ₹2.26 crore.
- Consolidated finance costs remained elevated at ₹8.78 crore for the quarter.
Anjani Portland Cement Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that all dematerialization and rematerialization requests for the quarter ended December 31, 2025, have been processed. This is a standard regulatory filing required to ensure that the company's share records are accurately maintained with depositories and stock exchanges. The filing indicates the company's adherence to mandatory administrative timelines.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued by Registrar and Transfer Agent (RTA) M/s. KFin Technologies Limited.
- Confirms processing of dematerialization and rematerialization requests as per SEBI norms.
- Filing submitted to both BSE and NSE stock exchanges on January 3, 2026.
Anjani Portland Cement Limited (APCL) has completed the sale of 6,35,11,620 equity shares in its subsidiary, Bhavya Cements Private Limited (BCPL). This transaction represents a 48% stake sale to Chettinad Cement Corporation Private Limited through an off-market deal. Despite the significant divestment, APCL maintains a majority stake of 51.01%, ensuring BCPL remains a subsidiary. The sale follows a special resolution passed by shareholders on December 24, 2025.
- Sold 6,35,11,620 equity shares of subsidiary Bhavya Cements Private Limited
- Divested 48% stake to Chettinad Cement Corporation Private Limited
- Maintains majority control with a post-sale holding of 51.01%
- Transaction completed via off-market sale on December 31, 2025
Shareholders of Anjani Portland Cement Limited (APCL) have approved the sale of the company's shareholding in its subsidiary, Bhavya Cements Private Limited. The special resolution for the sale received 96.84% approval from voting members, alongside the approval of material related party transactions with the parent company, Chettinad Cement Corporation. Additionally, an amendment to the Articles of Association was passed with a near-unanimous 99.96% majority. These approvals facilitate a strategic restructuring of the company's asset portfolio.
- Approved the divestment of shares in subsidiary Bhavya Cements Private Limited with 96.84% votes in favor.
- Passed a special resolution to alter the Articles of Association with 99.96% majority support.
- Authorized material related party transactions with Chettinad Cement Corporation for both share sales and ordinary business operations.
- The voting process involved 15,487 shareholders as of the record date of November 14, 2025.
- Total valid votes cast for the divestment resolution reached 277,369 shares from public and other non-promoter categories.
Anjani Portland Cement Limited (APCL) has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading Regulations. This closure is ahead of the declaration of the company's unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all directors and designated persons until 48 hours after the results are officially published. This is a standard regulatory procedure followed by listed companies to prevent insider trading during the earnings reporting period.
- Trading window closure commences on January 1, 2026.
- Closure is related to the financial results for the quarter and nine months ending December 31, 2025.
- The window will reopen 48 hours after the public announcement of the financial results.
- Restriction applies to all Directors, Designated Persons, and Connected Persons of the company.
Financial Performance
Revenue Growth by Segment
Consolidated revenue from operations declined 17.4% YoY to INR 661.50 Cr in FY23 and further decreased 5.7% to INR 623.90 Cr in FY24. For H1FY25, revenue stood at INR 185.85 Cr. Segment-wise, Cement revenue was INR 219.08 Cr and Power was INR 14.80 Cr for the period ending September 2024.
Geographic Revenue Split
100% of revenue is concentrated in Southern India, primarily in the states of Telangana and Andhra Pradesh. This concentration exposes the company to regional demand-supply imbalances and pricing pressures in a market characterized by overcapacity.
Profitability Margins
Operating margins have been volatile, dropping from 18.13% in FY22 to 3.24% in FY23 and slightly recovering to 4.73% in FY24. Net Profit Margin was -0.09% in FY25 compared to -0.02% in FY24, reflecting a 279.75% increase in losses due to lower sale realizations.
EBITDA Margin
EBITDA (PBILDT) margin stood at 4.73% in FY24 (INR 29.48 Cr), up from 3.24% in FY23 (INR 21.41 Cr). However, H1FY25 saw a negative PBILDT of INR -10.58 Cr due to operational inefficiencies and high input costs.
Capital Expenditure
Historical CAPEX includes the acquisition of Bhavya Cements Private Limited (BCPL) for approximately INR 460 Cr in FY22, funded through Inter-Corporate Deposits (ICDs) from the parent company.
Credit Rating & Borrowing
CARE Ratings maintains a 'CARE A+; Stable / CARE A1+' rating. Borrowing costs are anchored by Inter-Corporate Deposits from the parent (CCCPL) at an interest rate of 7% per annum.
Operational Drivers
Raw Materials
Limestone (sourced from captive mines), Coal (used for kiln and power generation), and Packing Materials (purchased from parent company). Specific cost percentages for each are not disclosed in available documents.
Import Sources
Limestone is sourced locally from captive mines in Suryapet (Telangana) and Tangeda (Andhra Pradesh). Coal is sourced from domestic and international markets, though specific countries are not disclosed.
Key Suppliers
Chettinad Cement Corporation Private Limited (CCCPL) is a primary supplier of clinker, cement, and packing materials, with proposed transactions totaling INR 1,000 Cr for FY26.
Capacity Expansion
Current consolidated installed capacity is 2.44 MTPA (APCL: 1.2 MTPA; BCPL: 1.4 MTPA). No specific future expansion timeline is disclosed, though turnaround is expected via improved utilization of existing assets.
Raw Material Costs
Raw material costs are highly sensitive to coal price volatility. Trade payable turnover ratio decreased 42.98% to 5.62 times in FY25 as the company availed higher credit periods despite lower purchase volumes.
Manufacturing Efficiency
Capacity utilization is currently moderately low due to regional overcapacity. PBILDT per tonne was INR 190 in FY24, significantly lower than the INR 782 per tonne achieved in FY22.
Logistics & Distribution
Distribution is geographically concentrated in Andhra Pradesh and Telangana, which reduces long-haul freight costs but limits market reach to oversupplied zones.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Growth will be driven by a turnaround strategy involving the re-commissioning of the WHRS to lower energy costs, increasing capacity utilization from current modest levels, and leveraging the strong brand and financial flexibility of the parent, CCCPL. The company has also proposed a material RPT of INR 1,000 Cr to streamline trading and operations.
Products & Services
Portland Cement (sold in bags) and Clinker.
Brand Portfolio
Anjani Portland Cement.
Market Expansion
The company aims to improve its business profile over the medium term by leveraging CCCPL's strong presence, though specific new target regions are not disclosed.
Market Share & Ranking
The company operates at a modest scale within the highly competitive Southern Indian cement industry.
Strategic Alliances
Strong operational and financial linkages with parent company Chettinad Cement Corporation Private Limited (CCCPL), which holds a 75% stake.
External Factors
Industry Trends
The Southern India cement industry is evolving toward consolidation and cost-efficiency through WHRS and captive power, as overcapacity (current growth rate in capacity exceeding demand) forces players to compete on cost leadership.
Competitive Landscape
Key competitors include large regional and national players in the Andhra Pradesh and Telangana markets.
Competitive Moat
The moat is derived from strong parentage (CCCPL) and integrated operations (captive mines/power). This is sustainable as long as the parent provides financial flexibility and the company improves its cost structure via WHRS.
Macro Economic Sensitivity
Highly sensitive to construction and infrastructure demand in Southern India and global coal price indices.
Consumer Behavior
Subdued demand in key geographies led to a 19% dip in sales volume in FY23, forcing a strategic shift toward high-contribution markets.
Geopolitical Risks
Exposure to global fuel price volatility which impacts the cost of imported coal used in cement kilns.
Regulatory & Governance
Industry Regulations
Operations are subject to limestone mining leases and environmental pollution norms for cement manufacturing plants.
Environmental Compliance
Investment in Waste Heat Recovery Systems (WHRS) to comply with environmental norms and improve energy efficiency.
Risk Analysis
Key Uncertainties
Volatility in input prices (coal/power) and demand-supply dynamics in South India could impact margins by 5-10%.
Geographic Concentration Risk
100% of revenue is derived from the Southern India market, specifically Telangana and Andhra Pradesh.
Third Party Dependencies
Significant dependency on parent CCCPL for financial support (ICDs) and operational synergies (RPTs representing 291% of turnover).
Technology Obsolescence Risk
Risk is mitigated by the re-commissioning of WHRS and maintenance of captive power units.
Credit & Counterparty Risk
Debtors turnover ratio was 15.52 times in FY25, indicating moderate receivables quality despite a 24.07% increase in revenue from operations.