SAHYADRI - Sahyadri Industr

📊 NSE: SAHYADRI 🏢 Cement Products 📅 Last Updated: 12/14/2025 12:38

💰 Financial Performance

Revenue Growth by Segment

Building Material segment revenue grew 6.17% in H1 FY26 to INR 334.40 Cr from INR 314.96 Cr in H1 FY25. Power Generation segment revenue declined 24.6% in H1 FY26 to INR 9.90 Cr from INR 13.13 Cr in H1 FY25.

Geographic Revenue Split

The company maintains a dominant market share in Western India (Maharashtra and Gujarat) and a strong presence in Southern India. It is currently expanding its footprint into North and East India to become a pan-India player.

Profitability Margins

EBITDA margin declined from 11.1% in FY24 to 9.5% in FY25. PAT margin decreased from 4.1% in FY24 to 3.2% in FY25. These declines were driven by lower volume offtake and increased input costs, particularly imported fiber.

EBITDA Margin

EBITDA margin was 9.5% in FY25, representing a 160 bps decline from 11.1% in FY24. Core profitability was impacted by seasonal headwinds and US dollar strength affecting import costs.

Capital Expenditure

The company has planned a capital expenditure of approximately INR 200 Cr for new manufacturing facilities in Maharashtra and Odisha to drive the next leg of growth.

Credit Rating & Borrowing

Long-term rating is [ICRA]A- (Stable) and Short-term rating is [ICRA]A2+. Leverage metrics are adequate with a Debt-to-Equity ratio of 0.21 as of March 2025.

⚙️ Operational Drivers

Raw Materials

Asbestos Fiber (imported) and Cement are the primary raw materials. Imported fiber costs are highly sensitive to USD/INR fluctuations, impacting overall margins by approximately 150 bps.

Import Sources

Asbestos fiber is sourced from asbestos-producing countries. The company relies on imports for a significant portion of its fiber requirements.

Capacity Expansion

Planned expansion includes new facilities in Maharashtra and Odisha with an estimated investment of INR 200 Cr to cater to growing demand in Western and Eastern India.

Raw Material Costs

Raw material costs are a significant portion of revenue. Operating margins declined to ~9% in FY25 due to a marginal increase in costs and lower volume offtake.

Manufacturing Efficiency

The company reported higher capacity utilization of installed capacity in 9M FY24, supporting a 9% growth in operating income during that period.

Logistics & Distribution

The company utilizes a strong distribution network of over 3,000 dealers and distributors across India to manage product reach.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be achieved through a INR 200 Cr capex for new plants in Maharashtra and Odisha, increasing the share of margin-rich Value-Added Products (VAP), and expanding market presence into North and East India.

Products & Services

Roofing Sheets (Asbestos and Non-Asbestos), Fibre Cement Boards, and Flat Sheets.

Brand Portfolio

Swastik, Cemply, Ecopro, and Swastik Sil Gold.

New Products/Services

Recently launched 'Swastik Sil Gold' roofing sheets to enhance the product portfolio and market penetration.

Market Expansion

Targeting expansion into newer territories across North and East India while strengthening market share in existing Western and Southern geographies.

Market Share & Ranking

Established market leader in the roofing sheets segment in Western India, particularly in Maharashtra and Gujarat.

Strategic Alliances

The company does not have any subsidiaries, associates, or joint ventures as of September 30, 2025.

🌍 External Factors

Industry Trends

The building materials industry is shifting toward non-asbestos and value-added products. Sahyadri is positioning itself by increasing its non-asbestos revenue share to 26%.

Competitive Landscape

Niche player in the construction industry with a focus on roofing and boards; faces competition from other building material manufacturers in the Western region.

Competitive Moat

Sustainable advantages include a 70-year group legacy (Patel Group), a massive network of 3,000+ dealers, and established brand equity in 'Swastik'.

Macro Economic Sensitivity

Highly sensitive to monsoon patterns (seasonal demand) and US Dollar exchange rates (import costs).

Consumer Behavior

Increasing demand for innovative, specialized, and futuristic building products capable of addressing modern construction challenges.

Geopolitical Risks

Regulatory risks associated with potential bans on asbestos mining or use in producing countries could disrupt raw material supply.

⚖️ Regulatory & Governance

Industry Regulations

Exposed to significant regulatory risk regarding the use or manufacture of asbestos-related products, which accounted for 86% of H1 FY24 revenue.

Environmental Compliance

Maintains ISO 14001:2015 (Environment) and ISO 45001:2018 (Safety) certifications across all plants and the head office.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the potential for a regulatory ban on asbestos products, which could impact up to 86% of revenue if not mitigated by the shift to non-asbestos lines.