Star Cement Limited — Call Transcript 2026

Feb 11, 2026

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Date: 11[th] February, 2026

To, The Listing Department, National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G Bandra Kurla complex, Bandra-East Mumbai-400 051

Symbol : STARCEMENT

To, The Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001

Scrip code: 540575

Dear Sir(s)/Madam(s),

Sub : Transcript of the Conference call for Unaudited Financial Results for the third quarter and nine months ended 31st December, 2025

In terms of Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we forward herewith the Transcript of the conference call with Investors and Analysts held on 09[th] February, 2026 for Unaudited Standalone & Consolidated Financial Results for the third quarter and nine months ended 31st December, 2025.

The same shall also be available in website of the Company at https://www.starcement.co.in/earnings-call#main

This is for your information and record.

Thanking you,

For Star Cement Limited

Digitally signed by DEBABRATA DEBABRATA THAKURTA THAKURTA Date: 2026.02.11 10:35:44 +05'30' Debabrata Thakurta Company Secretary (M. No.: F6554)

Encl. as stated.

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“Star Cement Limited Q3 & 9M FY-26 Earnings Conference Call”

February 09, 2026

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– MANAGEMENT: MR. TUSHAR BHAJANKA DEPUTY MANAGING

DIRECTOR, STAR CEMENT LIMITED – MR. MANOJ AGARWAL CHIEF FINANCE OFFICER, STAR CEMENT LIMITED

– MODERATOR: MR. VAIBHAV AGARWAL PHILLIPCAPITAL (INDIA) PRIVATE LIMITED

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Star Cement Limited February 09, 2026

Moderator:

Ladies and gentlemen, good day and welcome to the earnings call for the Quarter and 9 months ending 31[st] December 2025 for Star Cement Limited, hosted by PhillipCapital (India) Private Limited.

As a reminder all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing *’ then ‘0’ on your touchtone phone.

I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Private Limited. Thank you and over to you, sir.

Vaibhav Agarwal:

Thank you, Rio. Good evening, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q3 and 9 months FY26 call of Star Cement Limited.

On the call, we have with us Mr. Tushar Bhajanka – Deputy Managing Director, and Mr. Manoj Agarwal – Chief Finance Officer at Star Cement Limited.

I would like to mention on behalf of Star Cement Limited and its Management that certain statements that may be made or discussed on today's conference call may include forwardlooking statements related to future performance and anticipated company developments by its management. Such statements stated on today's call would be based on Star Cement's current management expectations. These statements are subject to a number of risks, uncertainties, and other important factors which may cause the actual developments and results to differ much from the statements made. Star Cement Limited and the management of the company assume no obligation to publicly update or alter these forward-looking statements, whether as a result of new information or future events or otherwise.

I will now hand over the floor to the management of Star Cement for their opening remarks which will be followed by an interrupted question and answer session. Thank you and over to you, Tushar.

Management:

Hi, good afternoon, all. My name is Tushar Bhajanka and I am the Deputy MD of Star Cement. I welcome you all to the conference call of FY26 Quarter 3. I would like our CFO, Manoj, to give his remarks regarding the numbers and then we can start with the Q&A.

Management:

Hi, friends. Very good afternoon. I, on behalf of Star Cement Limited, welcome you all to our con-call for discussing our number for Q3 FY26 and 9 months ended December ‘25.

Starting from clinker production:

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Star Cement Limited February 09, 2026

During the quarter ended December ‘25, we have produced 8.94 lakh tons of clinker as against 6.42 lakh tons same quarter last year. So far as cement production is concerned, we have produced 12.57 lakh tons this quarter as against 10.82 lakh tons same quarter last year.

Now, I will take you through the sales volume:

During the quarter, we have sold 12.31 lakh tons of cement and 0.65 lakh tons of clinker same quarter and as against 10.61 lakh tons of cement and 0.07 lakh tons of clinker in the same period last year. This is as far as cement and clinker sale is concerned.

As far as geographical distribution is concerned, in Northeast, we have sold around 9.36 lakh tons as against 8.37 lakh tons during same quarter last year. As far as outside Northeast is concerned, we have sold 2.95 lakh tons of cement this quarter as against 2.24 lakh tons same quarter last year. In terms of blend mix, it is 18% of OPC and rest is PPC. These are the quantitative numbers of the quarter.

Now, I will take you through the financial:

The total revenue figure this quarter is around 880 crores as against 719 crores same period last year. As far as EBITDA figure is concerned, this quarter we have done an EBITDA excluding of exceptional item of 5.52 crores. It is around 207 crores as against 107 crores last year. That is 74 crores as against 9 crores in the same period last year.

On the per ton EBITDA front, it is 1,600 during this quarter as against 1,000 per ton same quarter last year. This is what our quarterly numbers of the 3[rd] Quarter. The total revenue figure for the 9 months ended December ‘25 is around 2,603 crores as against 2,111 crores same period last year. As far as EBITDA figure is concerned, during 9 months ended December ‘25, we have done an EBITDA of around 631 crores as against 321 crores last year.

Profit after tax is 243 crores as against 46 crores in the same period last year. On per ton EBITDA front, it is 1677 during these 9 months as against 1,005 per ton same period last year. These are our quarterly and 9 months ended numbers.

Now I will request everyone, if you have any questions, then please you can ask the same and I will request Vaibhav to moderate the same whenever required. Thank you.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question is from Harsh Mittal from Emkay Global Financial Services. Please go ahead.

Harsh Mittal:

Congratulations on the good set of numbers. Good evening team. I have two set of questions. The first question is that there is one conflict event happened in the Umarangso district due to a coal mining blast. Do you have any domino effect on our operations? This is my first question.

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Star Cement Limited February 09, 2026

Management: I think your question is regarding the Meghalaya mining blast and the situation of illegal coal mining in Meghalaya, right?

Harsh Mittal: Yes.

Management: We have no relation to that incident because our coal is not coming from Meghalaya. It's unfortunate, but we have no information about it.

Harsh Mittal: The second question is that our volume guidance was 5.4 million tons for this year and given that we have a 21% growth in Quarter 3, so can we see any upward revision to this guidance?

Management: We can't hear you clearly. I think we can't understand the question even. So, if it's possible for you to be a bit clearer, then I think it will be easier for us to answer. Just try to repeat the question once. I will try to understand that.

Harsh Mittal: So, my question was that our earlier volume guidance was around 5.4 million tons and given that we have achieved 21% growth in Quarter 3, do we see any upward revision to this guidance?

Management: No, we don't. So, I think we will be trying to do about that or probably 5.3. So, I don't think there is any upward revision on that guidance for Quarter 4. I think we will be broadly growing at about the same pace in Quarter 4 as well.

Harsh Mittal: Sure, sir. There has been inflation in freight costs per tons, which is up 13% YOY and 6% sequentially. So, any specific reason for this? And can we assume this kind of steady-state guidance going ahead?

Management: So, Harsh, because December quarter and March quarter is a natural cycle. There is a slight increase over the second quarter because second quarter is not an oxygen period. So, there is hardly a Rs. 60-70 per ton increase. That is a normal thing. It happens in every quarter if you compare it from the Q2 vis-à-vis Q3 and then Q3 vis-à-vis Q4. That is normal. And there is a certain because the transport disruption was there in the middle, may be October end and November first week. So, that is why we have to move the material through rakes. So, handling cost has gone up. So, that is why that was one-off the costs. But normal Rs. 60-70 increase was there. This is cyclical in nature. And every quarter, Q2-Q3, it keeps on happening.

Harsh Mittal: So, can we assume 60 Rs. one-off rate cost for this quarter and that to reverse in next quarter? Is it a safe assumption?

Management:

Actually, in October, we had a strike. The strike had lasted. It was a strike in Meghalaya which restricted the movement of clinker. So, we had to use rakes to send clinker to a vending unit. That had increased our logistics cost. And that is why you see abnormal hike in our logistics cost

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Star Cement Limited February 09, 2026

compared to last quarter or YOY which I don't think you will see from Q4 when you compare Q4 to last year's quarter.

Harsh Mittal: Last question, what will be our depreciation guidance for FY27? If you can help me with that number.

Management: Depreciation will remain the same. 30 crores per month, 90 crores per quarter. That will be more or less the same.

Harsh Mittal: Sir, depreciation I am asking.

Management: I am talking about depreciation only. Depreciation right now is about 30 crores per month for us. And that will remain the same because we are also commissioning Silchar plant this month. So, I guess the depreciation will start showcasing itself in the next year. So, whatever depreciation should be reduced will be neutralized by the fact that there is another plant coming up and the depreciation of that plant will also increase.

Harsh Mittal: Thank you, sir. These were my questions.

Management: Thank you. Moderator: The next question is from Navin Sahadeo from ICICI Securities. Please go ahead. Navin Sahadeo: Good evening, sir. Congratulations on a good set of numbers. I had a couple of questions. I will start with the incentive income that you have booked in this Quarter 3.

Management: So, the incentive income that we booked this quarter is about 33 crores. If you compare this number to last year's same quarter, then last year's same quarter was 43 crores. And if you compare it to Q2 of FY26, then it was about 56 crores. So, our subsidy income has fallen from 43 crores YOY to 33 crores, which is a 28% drop in the subsidy income.

Navin Sahadeo: So, on subsidy, my follow-up question was that at roughly 1.3 million or nearly 13 lakhs of volumes, 12.3 as you said in cement, at this volume run rate, is this a subsidy to continue? Because you said Silchar is just about to get commissioned, I think you just mentioned a while back. Silchar is about to get commissioned. So, this subsidy amount can go up once the volumes from Silchar start coming up. How should one look at the run rate for the subsidy amount?

Management: I think the run rate for the subsidy that we experienced in Q3 is the result of the reduction in GST from 28% to 18%, which of course then reduces the overall subsidy amount which we were getting. So, that's why there's a drop. And the question regarding Silchar, when Silchar gets commissioned, first it will use the input GST from the project. So, that will take at least 7-8 months to fully utilise. And after we utilise the GST input credit, that's when we will start

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utilising the subsidy. So, we can see the benefit of having Silchar from Quarter 4 onwards next year in terms of subsidy.

Navin Sahadeo:

Understood. My second question then was on your realisation. So, net of one size excludes the incentives. The cement realisations for us have seemed to have gone up sequentially by a little under 2%. My question was, because East as a region, I know Northeast, but still 25% of the volumes as I understand, probably we sell it in areas out of Northeast, which is largely the Eastern region. So, if our analysis were correct and other companies also indicated the same that non-trade prices and even trade prices have taken significant hit in the Eastern region, I wanted to understand how did we manage a 2% increase in a tough environment? I mean, congratulations on that, but just wanted to understand how did we manage to get an increase when most of the players are reporting a decline?

Management:

I mean the information that I have for Bihar and West Bengal, the YOY, the prices in Bihar have risen a bit for us, but the prices in West Bengal have fallen. So, that is the observation. So, for us outside Northeast, which is basically Bengal and Bihar, has been quite neutral YOY, from FY26 Q3 compared to last year Q3. And in Northeast, we have seen an increase in the price of about Rs. 20 compared to last year same quarter. So, I think our weighted average realisation has improved mainly because of Northeast, in East, we have been broadly neutral. If we average out the price increase in Bihar with the price drop in West Bengal, it's basically neutral. So, that is how we can see that there is a 2% increase in realisation.

Navin Sahadeo:

Understood. And just to conclude, since our prices or realizations are benefited by the price increase, we could take in Northeast, are those hikes holding firm so far in January, Feb, or there has been a further improvement, any colour will be helpful?

Management:

Yes. So, fair enough. So, I think the prices are holding up in at least Northeast from December onwards. So, we do see that the prices are maintained. So, what we exited December month from, the prices have continued to be stable from there. Bihar and West Bengal, I think we have tried to take an attempt of Rs. 10, but that Rs. 10 entirely is not necessarily going to show in the Quarter 4 for Bihar and Bengal.

Navin Sahadeo:

No, I understood. But for Northeast, I was only confirming because very recently we also saw Dalmia's big kiln getting commissioned. So, how did that impact on the regional pricing, if at all? Are you seeing or how should one see now, with the major capacity coming up, how should one look at Northeast pricing in general for the next one year or so?

Management:

Well, I see the pricing to be stable. I don't think there is any problem because of the increase in supply and the pricing. I do see that the pricing even after Dalmia’s kiln has come to operation, has broadly been stable. So, I don't see a price problem for the coming year as well.

Thank you, sir. I have more questions. I will come back in queue.

Navin Sahadeo:

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Star Cement Limited February 09, 2026

Moderator:	Thank you. The next question is from Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi:	Good afternoon.
Moderator:	We seem to have lost the line for Mr. Rajesh. We will move to the next question. The next
	question is from Shivashish Kaushik from IFM Investment Advisors. Please go ahead.
Shivashish Kaushik:	My question is, basically, to check with you, what is the composition of non-trade and trade in
	your total volume? Plus, I also want to know that, what is the non-trade, even there is a marginal
	hike in the price, whether that has been absorbed properly, and what is the view in February,
	because there is a lot of noises which is there, that there is going to be Rs.10 to 50 further rise in
	the price. So, we just want to know your view on that.
Management:	So, non-trade in Quarter 3, we had sold 22% of our overall volume. So, this has increased
	compared to last year's same quarter, which was 19%. So, we have, our overall non-trade mix
	has increased from 19% to 22% over this one year. Your second question was regarding the
	price hike.
Shivashish Kaushik:	Yes.
Management:	I have not heard any news of price hike as of now. I don't think we have any plans of taking a
	price hike in Northeast, but to maintain the current prices which have already been increased.
	So, I don't think there is a hike happening of Rs.10 to 15 in North-East.
Shivashish Kaushik:	Another thing which I want to know is what is the price differential with North or Central, with
	North-East in terms of per bag?
Management:	I can tell you the per bag cost in Northeast, but I do not know what is the price in Central and
	West and East, in Central and North because we are not present there. So, the per bag price in
	Northeast is about Rs. 453, but you will have to probably verify the prices in North and Central
	as well.
Shivashish Kaushik:	Thank you.
Management:	Thank you.
Moderator:	Thank you. Next question is for Mr. Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi:	Sir, I was alluding to this incident which has happened in Northeast, as you mentioned in your
	earlier question. So, overall Northeast is a dynamic source of coal supply. Do you see this
	stringent measure now, which would be taken by the government and courts? Any implications
	on coal availability in Northeast?

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Management: So, are you talking about coal availability in Northeast? Rajesh Ravi: Northeast coal availability and overall coal prices going up. Management: Because of what? Rajesh Ravi: Because of this gradual mining crackdown on the illegal mining. Management: No, I don't think our coal supply is really linked to the Meghalaya coal illegal coal. So, I don't think there will be a big impact of that. Most of our coal is locked in the form of FSA from Coal India and the others are spot contracts that we take from Coal India and a little bit of biomass. So, I don't think we are really impacted by that at all.

Rajesh Ravi: Also, what we understand earlier that a good chunk of coal moves out of Meghalaya into India in parts of--.

Management: I am not able to clearly hear your question, so I am not able to answer. Rajesh Ravi: This is one. And second, also on the freight cost, we see that there has been an upward revision or rationalisation on the upward side on Meghalaya truckers' freight costs. So, what sort of impact this would have on numbers in subsequent quarters?

Management: I don't think the freight cost has really been revised for Meghalaya truckers as such. I don't see that we are having a material impact on the freight cost going forward. I think the reason why the freight had increased in Quarter 3 is mainly because of the strike which had happened in October, due to L1 deviation. And that is why the freight cost in October had increased and that is what you see in the results. But I don't see that you will see a material impact of that going forward in Quarter 4.

Rajesh Ravi: So, what is the reason for this increase in the freight cost?

• Management: We really can't hear you. Now you are like fully cracking.

• Rajesh Ravi: I will come back in queue.

Moderator: Thank you. The next question is from Kamlesh Bagmar from Lotus Asset Managers. Please go ahead.

Kamlesh Bagmar: Hi Tushar. Thanks for the opportunity. Tushar, can you please highlight or give some insight into the next phase of expansion because we were looking to expand capacities or enter the markets of Central and North markets. So, can you briefly touch upon that?

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Management:

Yes. So, thanks for the question. We are actually firm on a plan to enter Rajasthan. We have cottons mines in Nimbol next to Jodhpur district. And we have been securing land there. And we plan to apply for our EC and get our EC by September, October and then start construction of about 3 million tons of clinker along with 3 million tons of grinding and subsequently put 2 million tons of grinding in Haryana which will be fed by the clinker plant in Nimbol. So, that is our next plan which is to enter Rajasthan.

Kamlesh Bagmar: And apart from that, are we looking into the central region as well or so far sticking only to the North market?

Management: Yes, we are sticking to the North market because we believe that if we focus on one market which is North and it's quite a big market, so I think we will be able to probably position ourselves better in terms of brand and also focus in deeper penetration of the market. So, that is the first phase of expansion in North that we plan which we plan to start executing from Quarter 3 of this year onward, for next year onward. So, end of calendar year basically and then, so that is the plan and besides this we plan to put up a 2 million tons grinding unit in Bihar, the timeline of which we can discuss in the next call because we are in the phase of acquiring land for that. So, our plan for the next 2-3 years is basically to put up a 5 million tons grinding backed by clinkers in North and about 2 million tons of grinding in Bihar and along with this we have also applied for the EC in Umrangso in Assam for another clinker plant which we again will get from September this year. So, then we can also start laying the foundations and doing the basic civil work for our next clinker plant in Assam.

Kamlesh Bagmar: So, is it fair to assume that by Q3 of FY27 or Q4 of FY26 we would be ready with like say we would be having the orders placed for all these equipment’s which we have talked about or the capacities which we have talked about?

Management: Yes, by Q3 of FY27 we will be in a position where we have ordered the machineries and we also started some work on ground in building of the plant. I think machines should be probably in Q2-Q3 around that time we should be placing orders for machines as well. So, we are now a bit clearer about our plans of Rajasthan.

Kamlesh Bagmar: Great. And lastly what percentage of land we have acquired for Rajasthan and Haryana units?

Management: So, in Rajasthan unit we have broadly done a sale agreement right now and the entire land will be probably transferred to us in the coming month, a month and a half and we have already applied for the EC on the land that we have gotten a sale agreement and for Haryana we have identified the plot that we are looking at and we will start acquiring the land. The land in Haryana is a bit aggregated so I don't think once we have decided to buy the land then I don't think it's going to take much time. So, the EC process is basically running parallel to the land acquisition process and that's how we are progressing and that's how we are sure by September- October this year we will be able to start something on ground.

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Kamlesh Bagmar: And what would be the mode of financing that we would be looking at or like say the equity through the QIP or that source of funding? Management: So, ideally we'd want to keep our debt to EBITDA ratio to be less than 1.5X EBITDA and so I think that is what we are targeting and then we will make sure that whenever we are reaching the threshold or before that we will do a QIP to fill in the gap. So, that is something that we will also share in our investor presentation. Kamlesh Bagmar: Great, thanks for the thanks for answering the question. Management: Thank you Moderator: Thank you. the next question is from Uttam Kumar Srimal from Axis Securities. Please go ahead. Uttam Kumar Srimal: Good afternoon and congratulations on good set of numbers. How much CAPEX do we have incurred in first 9 months and how much we are going to incur in 4[th] Quarter and in FY27? Management: So vitally we have till now incurred about 431 crores of CAPEX and in Quarter 4 we plan to incur about 150 crores of CAPEX. Uttam Kumar Srimal: And in FY27 Management: FY27, we will have to probably plan it a bit and get back because we are still figuring out our plans in Rajasthan so, accordingly we will have to revise the numbers and probably get back to you on that Uttam Kumar Srimal: And with regard to premium cement what was the share of premium cement out of the trade sales during this quarter? Management: We sold about 17.1% of our trade sales was premium sales. This number has increased from 12% last year, so it has jumped from 12% to 17.1% in that one year. Uttam Kumar Srimal: That should have also helped you in getting more realization because percentage has increased from 13% to 18%. Management: Yes, 12% to 17%. Uttam Kumar Srimal: So, what is the current status of AAC block, how much revenue we have generated this quarter because it got a commission last quarter?

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Management:

We have sold 61,5000 CBN of AAC, the corresponding revenue is about 25 crores and Quarter 3 we have generated about 13 crores from AAC because still in ramp up. The plant is going to take some time to stabilize and we have utilized the plant at about 45% utilization in the second quarter of its commissioning.

Uttam Kumar Srimal: So, what could be the maximum revenue that we can generate from AAC block when it gets into full utilization?

Management: We can generate a revenue of about 90 to 100 crores if we utilize it fully.

Uttam Kumar Srimal: Couple of data points lead distance during the quarter. Management: So, the lead distance was 212. Uttam Kumar Srimal: It has come down it was around 220 km last time. Management: Yes, it was 220 km and now it's come down to 212, yes. Uttam Kumar Srimal: Fuel mix this quarter?

Management: Fuel mix was 70 8.8% was from FSA and about 15% was from biomass and another 5% was from spot. Uttam Kumar Srimal: And per kcal cost was? Management: 1.2. Uttam Kumar Srimal: That's all from my side and all the best. Management: Thank you.

Moderator: Thank you. The next question is from Shravan Shah from Dolat Capital. Please go ahead. Shravan Shah: Thank you, sir. Just to recheck in terms of the total CAPEX for Bihar Rajasthan and 3 million tons clinker at Umrangso with 2 million tons grinding in Jorhat. The total CAPEX if you can split Bihar, last time you said 500 crores, Rajasthan because now it seems 5 million tons, so last time you said 2,300 or 2,500 crores odd and for Umrangso 3 million tons clinker and 2 million tons grinding at Jorhat what would be the total CAPEX?

Management: Right now, the plan that we have in mind is to in the next 3 years or 4 years our plan is to put up a Bihar grinding unit, in the next 2 years Nimbol and Haryana plant. Nimbol is in Rajasthan, the clinker plant in Nimbol and a grinding unit in Haryana and sequentially start working on a

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grinding unit, and a clinker plant in Umrangso. So, the overall CAPEX for these four projects is about 4,800 crores.

Shravan Shah: And broadly this all should be commissioning in 1H FY29 or second half of FY29?

Management: I think towards the second half of FY29 or beginning of FY30, these all plants should be commissioning. Of course, they all will not commission together, some will commission before and probably Umrangso may commission about FY29.

Shravan Shah: So Umrangso will commission in FY29 and Bihar and Rajasthan. But that also you said it would be in the second half, so almost everything will be in 3 or 6 months everything will be commissioned in FY29.

Management: FY29 probably, the exact timeline we will be probably putting it in the presentation. So, I think it will just be a bit clearer for everyone. But of course, the grinding units take less time to commission and in Nimbol we are at a at a decent position, in September to start construction so the Nimbol Rajasthan plant will start sooner than the Umrangso plant.

Shravan Shah: So, the Rajasthan plant is also dependent on the QIP or we will start and as you said once the net debt EBITDA is reaching to 1.5X and we will then do the QIP of 1,500 odd crores that we have talked last time?

• Management:

We are going ahead with the plan irrespective and whenever we do get the right time to do the QIP or any other instrument we will do it. But we are not talking any plan for the country.

Shravan Shah: But broadly if one has to split this 4,800 crores into FY27-28-29, is it fair that FYR27 would be a 1,800 odd crores and FY28 would be a 2,000 to 2,500 crores and FY29 would be the balance that's the way one can look at?

Management: We will also have to plan it in a piece of paper and then share it. I don't think I can just say like that.

Shravan Shah: Till now in terms of the volume you as you highlighted that in the 4[th] Quarter also we will see the similar kind of run rate in terms of growth but for FY27 and ‘28 how one can look at because now all this extra new capacity will be coming in FY29, so ideally the volume should be coming in FY30 in a full way, so how one can look at the volume for at least ‘27-28?

Management:

In the coming year I think the volume growth would be similar to the volume growth that we experienced in FY26 so I don't see FY27 to be very different to FY26 and the volume growth of ‘28 will be hard to predict right now.

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Shravan Shah: And obviously as you are saying the prices are kind of stable, so profitability should be similar what we are right now having 1650 to 1700.

Management: Yes, that is broadly maintained. Shravan Shah: And lastly all put together AAC block and other non-cement revenue, till now in FY26, 9 months how much we would have done and how much would be the EBITDA margin on that and for next year how one can look at that?

• Management: So, from non-cement revenue. Till now it is around 25 crores, we are expecting to be around 45 crores this year and this year because of first year of operation. So maybe we have no profit no loss kind of thing and next year we are hopeful that 20% EBITDA margin should be minimum there from that business.

Shravan Shah: And in terms of the revenue, so this year you are saying that total… Management: So, what we expect is that 45 crores this year would be coming from the non-cement business and next year we expect about 100 crores coming from this business.

• Shravan Shah: And the current KKL cost 1.2 that should be stable for next one or two quarters I hope we should be having a 2-3-4 months inventory?

Management: We have about 2.8 lakh tons of coal so that is good enough for at least 4 months and that is broadly at the same rate as 1.2 so I think it should be fine.

• Shravan Shah: On the green side, the 50 MW solar that we are looking at in Assam, so when it is going to start? Management: The 50 MW that we are looking at Assam, we are still in discussion. There is some regulatory change and we will consider, now we are thinking of Rajasthan and generation of power in Rajasthan is high so we may decide to put up in Rajasthan so we will have to probably get back to you in the next quarter investor call on that.

• Shravan Shah: Thank you and all the best and congratulations on good set of numbers for this quarter.

Management: Thank you. Moderator: Thank you. We take the next question from Navin Sahadeo from ICICI Securities. Please go ahead. Navin Sahadeo: Thank you for the opportunity. Just a couple of clarifications. So, in terms of your CAPEX priorities, is it fair to assume that number one will be the Bihar grinding unit followed by a greenfield project in Nimbol and thereafter Umrangso? Is that correct sequence?

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Management: So, I mean in terms of priority, it's a good question I also haven't put it like that. But I think in terms of priority I think it really is to move all the four projects that I mentioned together as fast as we can because they are at different stages of completion from an EC perspective and from a groundbreaking perspective. But the idea is to definitely do the Bihar project and Nimbol project. The Nimbol Rajasthan project will of course give us a growth in revenue and create a diversification platform in terms of the EBITDAs and the revenue and the Bihar project would help us utilize our Northeast capacities better. So, from that perspective these two things are in priority at the same time, Umrangso is not an easy terrain to work so we just want to make sure that we start early so that we are able to commission the plant by the time we need the clinker which we expect to be about FY29. Like they all are equally important and they all have different aspects of business which they are solving for us. Rajasthan is more from a diversification story and Umrangso is more from just making sure that we are able to grow in our home market.

Navin Sahadeo: Great, just again clarification, Nimbol is a 3 million tons clinker unit and 5 million tons grinding unit.

Management:

Yes.

Navin Sahadeo: Of this 3 million tons clinker, clinker of course is at Nimbol but a grinding unit will be at Nimbol only 3 million tons and Haryana is 2 million tons which is what we are trying. Is that breakup broadly, correct? So, for this entire 5 million tons plant what is the broad CAPEX that we have finalized so far and then how should one look at the cost, or you would rather give it at a later stage?

Management: So, I think the cost that we have and that may change and I think the broad cost that we have taken out is about 2,400 to 2,500 for the clinker plant and the integrated grinding unit along with the grinding unit in Haryana. But that estimate may be a bit premature and may have a 10% deviation up or down, so that with that flexibility you can take that number.

Navin Sahadeo: The reason I am asking is because at 2,500 ballparks at a 5 million tons that cost comes to more like $55 for a greenfield project, peers have not really delivered it at such low cost and that's my question. If one could 2,500 is a realistic number or it is more closer to 3,000 crores is what I wanted to make a sense.

Management: I feel that this number is realistic because we have just put up a kiln of about that size right now and we were able to put it up in about 1,200 crores. So, even if I take the greenfield cost and even if I take the cost of an integrated grinding unit, I think we should be able to manage in that much but I will again do the working and then probably can give you a further clarification in the next call.

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Navin Sahadeo: Sure, and from a timeline point of view is Q3 this year, I mean let's say by December of ‘26, we place all the orders, so we should be targeting commissioning you said in 1.5 year thereafter is that what you said? By end of FY28 or early FY29, how should one look at it?

Management:

We will start a commissioning by Q3 of the next year which is December around of this calendar year and I think from there it will take about 18 to 22 months. So, if we calculate then that will be basically around September of FY28. So, that is what we are thinking because it will take at least 18 months from when we start the ground building.

Navin Sahadeo: Understood, my last question. So, for this year the volume guidance in the first question that you answered, did you say our volume guidance for this year remains intact at 5.3 million tons for ‘26?

Management: Yes, I think about 5.3 million tons remains intact and it also has clinker.

Navin Sahadeo: The reason why I asked is because 5.3 will imply flat volume year-on-year in Q4 so that's where I was checking, are we saying that Q4 will see flattish kind of volumes year-on-year or could see some?

Management:

I think there is some confusion because the number that we are talking about probably. So, I will have to get some clarity about it because I think they've also included the clinker sales volumes in it. But what I can say about Q4 is that this year we will see a 10% to 12% growth in Q4 as well, YOY so in terms of cement volumes the cement volume will be coming out about 8% to 10% in Q4 as well and the numbers, the right estimate of Q4 in terms of the absolute number for the entire year I will probably be able to write that down in the presentation that we put up online.

Navin Sahadeo: We will certainly look forward to your presentation and thank you for answering all the questions.

Management: Thank you.

Moderator:

Thank you. The next question is from Uttam Kumar Srimal from Axis Securities. Please go ahead.

Uttam Kumar Srimal:

My question pertains to Silchar unit, since Silchar unit will get commissioned in this quarter. Silchar is basically also nearest to Bangladesh also, so we are also thinking of exporting cement to Bangladesh?

Management: No, right now, we are not considering that because I think the transportation to Bangladesh is a bit tricky. There's no direct road which connects Bangladesh and Silchar side and normally in rainy season barges are used to transport and that is also not very near the rivers. So, we are not right now planning to sell in Bangladesh from Silchar and also Bangladesh has a custom duty

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on cement which is almost like Rs. 2,000 per ton of custom. There's no economic sense of sending cement to Bangladesh anyway.

Uttam Kumar Srimal: And sir what was the capacity utilization of our Siliguri plant this quarter? Management: This quarter our utilization of HUL is about 60% and I think we will be able to utilize our plant in Q4 at about 70% to 75%. Uttam Kumar Srimal: That's all from my side. Thank you. Management: Thank you. Moderator: Thank you. The next question is from Milind Raginwar from BOB Capital Markets. Please go ahead. Milind Raginwar: Thank you for this opportunity. Just confirming Silchar, GU we are expecting by what would be the timeline for Silchar and Jorhat revised on? Management: The timeline for Silchar is this month. I think by end of the month we will be commissioning a plant so between 20[th] to 27[th] is when we think of commissioning the plant and Jorhat would be, I think we have deferred Jorhat and we have preferred to put in Bihar rather than Jorhat. So, Jorhat may come along with the clinker plant in Umrangso. Milind Raginwar: So as of now Jorhat remains replaced by Bihar. Management: Yes. Milind Raginwar: So, there is no GU now in Jorhat, right? Management: No so there will be a GU which will come along with the Umrangso plant but not right now it will take about 3.5 years because right now with the Silchar capacity coming up I think we will have sufficient capacity in Northeast to serve Northeast market. Milind Raginwar: In that case we will have 9.6 long capacity in in Northeast on the GU side. I mean including GU that is a total cement capacity. Is that in fair assumption? Management: Yes, it will be 9.7, 2 in Siliguri and 7.7 in Northeast. Milind Raginwar: Correct and this will be backed by about 6.1 million tons of clinker? Management: Yes, so this is broadly clinker backed this capacity.

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Milind Raginwar: Then the Bihar GU we will be backing by the existing clinker only or it will only come after the Umrangso plant?

Management: So, we will be putting up the Bihar plant before Umrangso also because it will take lesser time than Umrangso and it will help us out utilize the clinker of the existing units faster and with Umrangso, we will be putting the Jorhat plant.

Milind Raginwar: So, till that time Bihar will be fed by Meghalaya clinker, is that a fair assumption? Management: Yes, and that will also help us utilize it faster.

Milind Raginwar: That is it from my side. Thank you. Management: Thank you. Moderator: Thank you. We have one last question. We take the last question from Shravan Shah from Dolat Capital. Please go ahead. Shravan Shah: Hi sir. This clinker whatever we are selling 5%-6% of the total volume. So, this will continue for even next year also? Management: Yes, I think we do expect that clinker that whatever we sold in Quarter 3 that kind of a volume to be sold every quarter.

Shravan Shah: So currently if I look at 9 months our CC ratio broadly is 1.32 versus normally, we have closer to 1.5, so it is that by the end of 4[th] Quarter we will catch up and on the full year basis the broadly 1.5 CC ratio that remains.

• Management: I think right now our clinker ratio is about 67.5% which is if I can work in the way it is coming to be about 1.48 only.

Shravan Shah: And in for 3[rd] Quarter broadly if we have to look at Northeast versus East for us, in terms of profitability still it would be the East would be Rs. 500-600, that the number which we used to have the similar still is there?

• Management: I think the EBITDA per ton that we earn in East is about Rs. 600 to 700 and I think with some price betterment I think it can reach to about Rs. 800.

Shravan Shah: Got it. But post the Rajasthan expansion, so if you can direction difficult to predict right now but still directionally till what level are we comfortable obviously because Rajasthan once if the volume will start the EBITDA per ton definitely will not be as like as Northeast. But roughly are

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we are we looking at kind of a 800-900 that's the kind of a profitability per ton that we are looking for the Rajasthan?

Management:

Yes, I think our modelling in the steady state expects it to be more than 1,000 because it also depends on how you where you put up your plants and how efficient your plants are. So, our expectation in the long run is about 1,000 and stable low, initially of course EBITDA will be low because we will be ramping up and spending on branding as well so the EBITDA per tons in Rajasthan could be lower because of that.

Shravan Shah:

And there also we will be having incentive in Rajasthan also.

Management: Yes, we will be having a capital subsidy incentive as per the policy of the Rajasthan government.

Shravan Shah: Which would be roughly on an annual basis of per ton and any broad idea.

Management: That we are happy, it is about 23% of the CAPEX as a capital subsidy. As far as GST is concerned it is a capital subsidy.

Shravan Shah:

Got it sir. Thank you and all the best.

Management:

Thank you.

Moderator: Thank you. We have one last question in queue. It's from Siddharth Mehrotra from Kotak Securities. Please go ahead.

Siddharth Mehrotra: Thanks for the opportunity. Just wanted to sort of get your views on the upcoming capacity expansion in North. So, I was just looking at the numbers. If we add in your 5 MTP expansion as well. I am looking at almost a 50-55 MTP expansion in just the North region. So, are we sort of going to see a very aggressive supply situation in that geography and if yes how are we going to counter the incumbents already who have a legacy system there. So that's sort of just wanted to get your broad thoughts on that.

Management:

So, I think Northern markets I think over time have basically broadly maintained a decent utilization. I understand that there are 2-3 companies like GSW, Dalmia and other companies which are entering North now and that may lead to excess capacity. But I think the tendency of North has generally had more decadence than other areas in the mainland India. So, I think our strategy is quite simple. We are not entering with a very large capacity. Actually, we have an integrated plant of 3 million and shortly after we commission that we will be commissioning a grinding unit in Haryana. So, the capacity that we enter is not huge. And what we would target to do is to maintain and you have to create a brand like how we have created a brand in Northeast and we sell higher than any other brand in Northeast despite being the highest volume player in Northeast. We would want the same kind of a branding and patience in terms of marketing in

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North as well. So that is how we plan to go about and just make sure that we are able to position ourselves through branding and technical services and other things at a good price band compared to our competitors.

Siddharth Mehrotra: Understood sir. So, we definitely will not be compromising our margins just to sell volumes in that geography. If that understanding is correct.

Management: Yes, more important like especially if you are entering a new area, it is more important. I mean it is of course tempting to sell more volumes but it comes at the cost of putting yourself at a lower price band. So, we will have to make sure and have the patience and the willpower to create a brand in the long run. And discounting and selling and just trying to get done with the volume is not the answer to that.

Siddharth Mehrotra: Got it sir. And just one last question if I can squeeze in. So, what is the cost of our limestone in the Northern region, are they legacy mines, are they newer mines? Management: So, that I think we have an auction mine. The average premium of the auction mine is about 57%. This is for Nimbol. But we are also looking at legacy mines. So, we are confident that we will probably be able to lock one or two legacy mines. If we do that then of course our cost for the initial 10 years will be 0% auction price because they are legacy mines. So, I think that is what we are trying to do. I think by the next call I will have better clarity and probably we would have locked the mine and then I think I can talk more about it.

Siddharth Mehrotra: Great sir. That would be good to know. Thanks a lot for your time, sir. Best of luck. Management: Thank you. Moderator: Thank you very much. That was the last question in queue. I would now like to hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Private Limited for closing comments.

Vaibhav Agarwal: Thank you, Tushar. I just had a couple of questions. So, first thing, were there any one-offs in the cost apart from the rate in the Q3? Sir, were there any one-offs in the cost items in Q3 apart from… Management: 5 Cr donation is there. There is a one-off cost is there.

Vaibhav Agarwal: And this donation is to any political party or like what? Management: Yes, it's a political donation. Vaibhav Agarwal: And apart from that there is no other one-off, right?

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Management: No.

Vaibhav Agarwal: And sir, second thing was I just wanted to know that Tusharji mentioned on the call about Rs. 1,000 steady state EBITDA guidance in North operations. So Tusharji when I met you, we had discussed that you had kind of highlighted that 1,300 to 1,500 would be your sustainable EBITDA even after your expansions. So that is your forecast then. So, this Rs. 1,000 you are mentioning as on date or you are mentioning as once you enter? I was slightly confused over that. So, I wanted to clarify that.

Management: So, the question that am I expecting 1,300 or 1,000 in the long run?

Vaibhav Agarwal: Yes.

Management: I mean it really depends like I think the question which was asked earlier if you are operating equity mines versus option mines. So, I think the answer just really depends on all those things. I think in the next call we will be in a better position to answer. I mean ideally in the steady state; all the cement companies should be earning 1,200 given the investment that we make. But for our case depending on the legacy mine we will be able to better explain what we are expecting in the next call.

Vaibhav Agarwal: So just want to clarify. So, your earlier guidance which when I interviewed you and which you gave of 1,300 to 1,500 EBITDA per ton on a sustainable basis for Star Cement as a whole that holds on right? That is your expectation as of now. I just wanted to confirm that.

Management: I mean if you are talking about Rajasthan or are you talking about North India?

Vaibhav Agarwal: Overall, I am saying Star Cement as a whole. So, the question was asked to you was what was the dilution you were expecting by profitability once you entered in new markets. And that time you answered that 1,300 to 1,500 EBITDA.

Management: I think going in the future I think we do expect like 1,300 to 1,400 to be the range for Star Cement. Essentially for North, I thought you were asking specifically for North.

Vaibhav Agarwal: No, so I was asking after the North, so if you are saying North is Rs. Rs. 1000 to Rs. 1,100 EBITDA per ton, so broadly your guidance of 1,300 to 1,500 holds on or that is kind of tapered down?

Management: I think it is (Inaudible) (1.04.14)

Vaibhav Agarwal: That is what my question was. Thanks a lot Tushar and on behalf of PhillipCapital (India) Private Limited. I would like to thank the management for the call and also the participants for joining the call. Thank you very much sir. You may now conclude the call. Thank you.

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Management: Thank you. Moderator:

Thank you very much. With that we conclude today's conference. Thank you for joining us ladies and gentlemen, you may now disconnect your lines.

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