Revenue and Profit Growth Over the Years
Star Cement’s net sales have shown a consistent upward trend, increasing from ₹1,831 crore in March 2019 to ₹3,163 crore in March 2025. This represents a compound growth driven by expanding operations and market demand. The total operating income mirrors this growth, with no other operating income reported during this period, indicating core business strength.
Operating profit before depreciation and interest (PBDIT) excluding other income rose from ₹449 crore in 2019 to ₹579 crore in 2025, reflecting improved operational efficiency. However, the operating profit margin has seen some compression, declining from 24.5% in 2019 to 18.3% in 2025, likely due to rising raw material and power costs. Despite this, the company maintained a positive gross profit margin above 17% in the latest fiscal year.
Profit after tax (PAT) has fluctuated, peaking at ₹305 crore in 2019 and dipping to ₹169 crore in 2025. The PAT margin similarly contracted from 16.7% to 5.3% over the same period, signalling increased cost pressures and higher depreciation charges. Earnings per share (EPS) followed this pattern, declining from ₹7.13 in 2019 to ₹4.18 in 2025, reflecting the impact on shareholder returns.
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Balance Sheet and Asset Expansion
The company’s total assets have expanded significantly from ₹2,069 crore in 2020 to ₹3,864 crore in 2025, driven by substantial investments in fixed assets. The gross block of assets increased from ₹1,163 crore in 2020 to ₹3,667 crore in 2025, with net block rising from ₹693 crore to ₹2,408 crore, indicating ongoing capital expenditure and capacity enhancement.
Shareholders’ funds have grown steadily from ₹1,857 crore in 2020 to ₹2,879 crore in 2025, supported by rising reserves which reached ₹2,839 crore in the latest fiscal year. The book value per share improved from ₹45.03 in 2020 to ₹71.24 in 2025, reflecting enhanced net worth per share.
Long-term borrowings increased notably to ₹314 crore in 2025 from negligible levels in prior years, suggesting new debt financing to support expansion. Current liabilities also rose to ₹896 crore in 2025, up from ₹304 crore in 2020, consistent with the company’s growing scale of operations.
Cash Flow Trends and Financial Health
Operating cash flow has remained positive throughout, though it declined from ₹482 crore in 2020 to ₹296 crore in 2025, reflecting higher working capital requirements and operational costs. Investing activities consistently showed cash outflows, peaking at ₹528 crore in 2025, aligned with capital expenditure on asset growth.
Financing cash flows were positive in recent years, with ₹224 crore inflow in 2025, indicating fresh borrowings or equity infusion. Despite these movements, the net cash position has fluctuated, ending at ₹39 crore in 2025, down from ₹241 crore in 2020, signalling tighter liquidity but no immediate cash stress.
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Summary of Historical Performance
Over the past six years, Star Cement has demonstrated robust revenue growth, nearly doubling its sales from under ₹2,000 crore to over ₹3,100 crore. Profitability has been more volatile, with margins contracting due to rising costs and increased depreciation from asset expansion. The company’s balance sheet has strengthened with higher net worth and asset base, supported by moderate debt levels to finance growth initiatives.
Cash flow management remains a key focus area, as capital expenditure and working capital demands have increased. While earnings per share have declined from their peak, the company’s strategic investments position it well for future growth in the competitive cement sector.
Investors should weigh the steady top-line expansion against margin pressures and cash flow dynamics when considering Star Cement’s historical performance and outlook.
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