Star Cement Limited (STARCEMENT)
Micro CapMaterials stocks · Micro cap · NSE
Star Cement Limited is a leading Eastern India-focused cement company with 9.7 MTPA grinding capacity and 6.1 MTPA clinker capacity. It holds ~27% market share in the North-East, supported by an extensive distribution network and a disciplined expansion strategy. The company aims to transform into a PAN India player.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -24% YoY · margin compression · Rev +3% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹943 Cr | +3.4% | -19.7% |
| EBITDA | ₹194 Cr | -14.9% | -38.4% |
| Operating margin | 21.0% | -400 bps | -600 bps |
| PAT | ₹74 Cr | -24.5% | -49.7% |
| PAT margin | 7.8% | -290 bps | -467 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Star Cement reported strong Q4 FY26 performance with 13% YoY sales volume growth and 19% YoY EBITDA growth, reaching highest ever quarterly EBITDA of INR 318 Cr. FY26 annual EBITDA hit a record INR 944 Cr., up 60% YoY, driven by Cachar GU commissioning and robust demand.
The company delivered robust Q4 and full-year FY26 results, driven by strong volume growth and operational efficiencies, including new capacity commissioning. Management's aggressive expansion plans outside the North-East, funded by internal accruals and debt, indicate a clear growth trajectory, though execution and market demand remain key monitoring points.
Sales by Geography (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Pan-India Expansion
Company is transforming from a strong NE leader to a PAN India player with planned expansions in East (Bihar) and North (Nimbol, Haryana).
New Grinding Unit Commissioning
Cachar Grinding Unit (2.0 MTPA) was commissioned on February 19, 2026, contributing to high Q4 demand fulfillment.
Premium Product Sales
Premium sales were 15.1% of trade sales in Q4 FY26, up from 12.2% in Q4 FY25, indicating potential for higher realizations.
Green Energy Adoption
Increased green energy share (33.8% in Q4 FY26) and WHRS contribution (27.4%) are driving cost rationalization.
Cachar Grinding Unit (Assam)
2.0 MTPA cement capacity commissioned on February 19, 2026.
Bihar Grinding Unit
Planned 2.0 MTPA cement capacity, targeted for commissioning by FY28. Land acquisition is in progress.
Nimbol Integrated Unit (Rajasthan)
Planned 3.3 MTPA clinker and 3.0 MTPA cement capacity, targeted for commissioning by FY29. Land acquisition in progress.
Haryana Grinding Unit
Planned 2.0 MTPA cement capacity, targeted for commissioning by FY29. Land acquisition in progress.
Robust Sales Volume Growth
Q4 FY26 sales volume grew 13% YoY, with ROE sales growing by 32%, indicating strong demand outside the core NE market.
Cost Rationalization
Logistics costs decreased QoQ due to fewer disruptions. Low fuel costs were attributable to high coal sourcing from FSA.
Government Refunds
Disbursement from Assam Government towards Sonapur Line 2 refund has started.
West Asia Crisis Impact
Escalation in the West Asia crisis largely led to increased costs for packing bags and diesel.
Rake Availability & Fuel Costs
Route restrictions by railways in NFR impacted rake availability, leading to fuel cost escalations and coal availability issues.
Potential Rise in Fuel Costs
Management anticipates fuel costs may rise in Q1 FY27 due to impacted coal availability.
Execution Risk for Large Capex
Planned CAPEX for FY27 is estimated at ~INR 700 Cr., with total project outlay of INR 3,650 Cr. for new units, requiring timely execution.
Funding Expansion
Future expansion is planned through internal accruals and debt financing, targeting Net debt/EBITDA below 1.5x, which needs careful management.
Market Demand in North-East
Planned expansion in NE will be evaluated in line with evolving market demand and business conditions.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall business health and annual trends, especially for a seasonal business. QoQ comparison is important to track sequential momentum, utilization ramp-up from new capacities, and immediate cost impacts.
Cement and Clinker Sales Volume
Q4 FY26 sales volume grew 13% YoY to 17.33 Lacs tons. FY26 sales volume grew to 54.96 Lacs tons from 47.31 Lacs tons in FY25.
Revenue from Sales
Q4 FY26 revenue from cement and clinker sales increased 11% YoY to INR 1,174 Cr. FY26 revenue grew to INR 3,776 Cr. from INR 3,163 Cr. in FY25.
EBITDA
Q4 FY26 EBITDA increased 19% YoY to INR 318 Cr., highest ever for a 4th quarter. FY26 EBITDA was INR 944 Cr., up 60% YoY from INR 589 Cr. in FY25.
EBITDA per ton
Q4 FY26 EBITDA per ton was INR 1,838, up 5.2% YoY from INR 1,748. FY26 EBITDA per ton was INR 1,717, up from INR 1,245 in FY25.
Green Energy Target
Management targets a green energy share of 60% by FY28, evaluating various renewable energy combinations.
Thermal Substitution Rate (TSR)
Management achieved the 20% TSR target by FY27 and plans to maintain it going forward.
Water Positivity Goal
Management aims for 2x water positive by FY28, currently at 1.60x with new reservoir construction.
Fiscal Prudence
Management targets to maintain fiscal prudence and remain below Net debt/EBITDA of 1.5x while funding expansion.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Sales Volume Growth | 13% YoY in Q4 FY26 | Sustained growth, especially from new regions (ROE), and utilization ramp-up of Cachar GU. |
| EBITDA per ton | INR 1,838 in Q4 FY26 | Maintenance or improvement, given potential fuel cost increases and benefits from green energy initiatives. |
| Green Energy Share | 33.8% in Q4 FY26 | Progress towards the 60% target by FY28, indicating cost efficiency and sustainability efforts. |
| Net Debt/EBITDA | Not explicitly stated, but target below 1.5x | Adherence to the target of below 1.5x, especially with significant planned CAPEX. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
35Bearishfull bear SMA stack · SMA20 -5.6% / mo · MACD − · near 52W low
Technical chart
STARCEMENTdaily · 1Y · AUTO-6.7%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 41. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.9% over last month) — short-term momentum negative.
- RSI(14) at 41 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 35% off 52W high · 6% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 50 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 50 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 33.3%.
- Balance sheet contributes 10/15 to the score.
Main drags
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Quality is weaker at 7/20; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 86th percentile of the scored universe and 95th percentile within Materials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 58.1%. Key concern: 2 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Materials: 95th pctile, median 70 · Micro: 74th pctile, median 73
106 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 58.1%.
- ▸Promoter pledge is zero.
- ▸9 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸2 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 20.30
- P/B
- 2.41
- EV/EBITDA
- 6.51
- Market Cap
- 7687.00Cr
Profitability
- ROE
- 13.20%
- ROCE
- 16.70%
- ROA
- 7.88%
- Dividend Y
- 1.05%
Growth (CAGR)
- Revenue 5Y
- 17.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 12.00%
- EPS 3Y
- 18.00%
Balance Sheet
- Debt/Equity
- 0.19
- Interest Coverage
- 18.04×
- Altman Z
- 5.82
- Book Value
- 79.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 9/5
- OCF
- 765.00 Cr
- EPS TTM
- 9.14
Shareholding
- Promoter Hold
- 58.10%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 9%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Materials, ranked by similarity
Peers
Business-comparable peers in Materials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.