Andhra Cements Expands Grinding Capacity to 3 MTPA at Durga Cement Works

Key numbers

Total Capacity	3.00 MTPAGrinding Limit
Market Cap	₹372.84 CrSmall Cap
Revenue TTM	₹485.13 CrLTM Performance
Day RSI	36.84Near Oversold

Key highlights

• Incremental grinding capacity of 1.18 MTPA added at the Durga Cement Works facility
• Total grinding capacity at the plant now stands at 3.00 MTPA
• Project completion follows the initial expansion proposal approved in January 2024
• Facility is located at Dachepalli in the Palnadu District of Andhra Pradesh
• Expansion supports the company's regional volume growth strategy in South India

Production Commenced — What It Means

Andhra Cements has officially transitioned its expanded grinding unit at Durga Cement Works into commercial production. By scaling capacity from 1.82 MTPA to 3.00 MTPA, the company has added 1.18 MTPA of incremental output potential in the Palnadu District of Andhra Pradesh. This ramp-up is designed to cater to the rising demand for Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) in the South Indian markets.

The facility, an integrated unit, now possesses a larger footprint to leverage its captive limestone resources and existing clinker manufacturing infrastructure.

Path to This Milestone

• The Board of Directors approved the capacity enhancement proposal on January 24, 2024.
• Expansion follows the company's acquisition by Sagar Cements via the NCLT resolution process in 2023.
• Infrastructure upgrades included a prior commissioning of a 6-stage preheater in October 2025.
• The project focuses on modernizing legacy assets to improve overall plant efficiency.
• Integration with parent company Sagar Cements provides operational and financial support for capital expenditure.

Financial and Operational Context

The expansion comes at a critical time as the company works toward financial recovery. For the quarter ended June 2026, Andhra Cements reported a net loss of ₹35.93 crore despite a 42.84% year-on-year increase in operating revenue to ₹142.17 crore. The increased grinding capacity is expected to allow for higher volume sales, helping to offset high fixed costs and improve capacity utilization.

While the company currently operates with a negative P/E of -5.07, the focus remains on scaling the business to reach an operating level that supports a sustainable cost structure.

Sector Tailwinds and Demand Dynamics

• Cement demand in India is projected to grow by 7-8% in FY2027, driven by housing and infrastructure.
• South Indian markets are witnessing price revisions as manufacturers manage rising freight and fuel costs.
• Regional consolidation continues as larger players absorb mid-tier subsidiaries to improve market reach.
• Increased infrastructure spending and the upcoming festive construction peak support near-term volume absorption.

Andhra Cements · financial snapshot

Share price	₹40.45
Market capitalisation	₹372.84
Revenue (annual)	₹442.49
Net profit (annual)	₹-67.16
P/E (TTM)	-5.07×Sector 32.99×
Promoter holding	75%0.00% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.