As of , Orient Cement Ltd (Cement) has a deep value score of 42/100 (rated Average).
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Capacity Utilization: 80%
Impact: ₹1,250-1,300 EBITDA/ton
“All these assets, including my existing assets, the target is to hit 80% utilization. And the target is to hit EBITDA, which is almost closer to INR1,250 to INR1,300.”
What: Amalgamation: One Cement Platform
“proposed amalgamation of ACC and Orient Cement with Ambuja Cements. This marks the beginning of a unified One Cement Platform.”
What: Premium Cement Share: 35%
Impact: ₹5/bag realization gain
“Premium cement volumes accounted for 35% of the trade sales. And in absolute terms, it increased 31% compared to last year.”
What: Net Debt: Zero
“Company remains debt-free, CRISIL and CARE AAA stable and A1+ ratings, which are the highest in the country.”
What: New Capacity: 4 MTPA
“Assam also, we have signed up -- we have entered into agreement with the government in terms of setting up another 1 line of 4 million tons in Assam.”
What: Volume growth of 17% YoY
“We delivered industry-leading performance, growing our volumes at 2x the industry average. This was supported by stronger market execution.”
Earnings deceleration risks from management commentary
Trigger: Regulatory changes in labor compensation structures.
Impact: PAT impact: ₹107 Cr
Management view: Treated as a one-time impact in PAT reconciliation.
Monitor: labor
Trigger: Disputed matters and legal cases.
Impact: PAT impact: ₹114 Cr
Management view: Management noted they have resolved a majority of cases and won several.
Monitor: litigation
Trigger: Global energy price fluctuations.
Management view: Increasing green power share to 60% by FY28 to insulate from volatility.
Monitor: commodity
Key quotes from recent conference calls
“We were looking earlier at 120 million tons in FY '26. 2 million tons of Sindri and Jamul has also been included here. [Previous Total Cement Capacity guidance]”
“proposed amalgamation of ACC and Orient Cement with Ambuja Cements. This marks the beginning of a unified One Cement Platform. [Initiative: One Cement Platform]”
“we are unlocking an additional 15 million tons of debottlenecking capacity at lower capex cost. [Initiative: Debottlenecking]”
“Impact of New Labour / Wage code... INR (107) [crores]. [Risk (labor): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹10,277 Cr
Why: Growth was supported by a ₹5 per bag improvement in realizations and consistent double-digit volume growth.
Revenue reached a record high on a normalized basis, outperforming industry pricing trends.
EBITDA
₹1,353 Cr
Why: Performance was driven by a 2% year-on-year cost improvement and higher volumes despite sequential cost headwinds.
Normalized EBITDA excludes a one-time Himachal excise drawback of approximately ₹826 crores.
PAT
₹378 Cr
Why: The jump was due to normalized comparisons excluding exceptional items like income tax refunds and excise duty drawbacks.
Reported PAT shows a steep fall due to high base effects from prior period tax refunds.
Other Highlights
• Volumes grew at 18.9 million tons, representing 17% YoY growth, which is 2x the industry average.
• Capacity utilization for acquired assets improved to 58% for the quarter, exiting December at 65%.
• Green power share increased by 15 percentage points YoY to reach 37%.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Capacity Utilisation (Acquired Assets)
58%
Why: Disciplined execution of integration and optimization playbook.
Realisation Improvement
₹5 per bag
Why: Focus on value and market share through premiumization.
EBITDA per Ton (Normalized)
₹718
Why: YoY improvement driven by cost reduction; QoQ decline due to one-time maintenance and branding costs.
Green Power Share
37%
Why: Commissioning of renewable energy assets.
Premium Cement Share of Trade Sales
35%
Why: Consumer preference shifting towards higher-quality products.
Total Cement Capacity
109 MTPA
Why: Commissioning of 2.4 MTPA Marwar Grinding Unit ahead of schedule.
Clinker Factor
67.3%
Trade vs Non-Trade Mix
65% Trade
Why: Strategic focus on trade channels to improve realizations.
Logistics Cost Reduction
1%
Why: Network optimization and improved logistics density.
Forward-looking targets from management for FY26
Revenue Growth Target
8%
OPM Guidance
1250–1500%
Capex Plan
₹10000 Cr
8% demand growth
Targeting EBITDA expansion
₹10,000 Cr
Growth and efficiency initiatives
Double-digit growth
Guidance Changes
FY26 Exit Capacity: 118-120 MTPA → 115 MTPA
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -22% | -2% | Inflection Down |
| PAT (Net Profit) | +31% | +40% | Stable |
| OPM | 17.0% | +500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Orient Cement Ltd has a deep value score of 42/100 (rated Average). This score is calculated from three components
Orient Cement Ltd's quarterly profit (PAT) growth trajectory
Orient Cement Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Orient Cement Ltd's earnings momentum is Monitoring.
Orient Cement Ltd's valuation metrics
Orient Cement Ltd's revenue and margin trends
Orient Cement Ltd's trailing twelve month (TTM) performance
Orient Cement Ltd key facts
Orient Cement Ltd shows limited deep value signals currently — score is 42/100 (Average). Monitor for improvement.
Other deep value stocks in Cement
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Orient Cement Ltd has 6 key growth catalysts identified from recent earnings analysis
Orient Cement Ltd has 3 key risks worth monitoring
In Q3 FY26, Orient Cement Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
