Analysis: Sanghi Industries Limited

Growth thesis

Sanghi Industries, part of Adani Group's cement cluster, produces and sells cement via trade and non-trade channels, leveraging integrated clinker/grinding operations and renewable energy. Key segments include cement production (targeting 155 MTPA by FY28), grinding units (15 MTPA debottlenecking at $48/t capex), and 1,122 MW renewables to cut power costs from INR6.1 to INR4.5/unit by FY28. Growth stems from 155 MTPA capacity expansion (up from 109 MTPA exit FY26), 35% premium cement share (up from 29%), and INR300-350/t cost reductions via new kilns, logistics optimization (INR150/t savings), and 75% alternative fuel mix. By FY28, 8-9% annual cost declines and 20-22% market share are expected, with EBITDA per ton rising to INR1,500. Execution hinges on timely Warisaliganj commissioning and green power regulatory approvals.

Why is Sanghi Industries Limited stock rising?

• Sanghi clinker capacity utilization exit at 80% and cement at 65% in December, indicating ongoing ramp-up
• Potential to increase clinker production from 6.5 million tons to 7.5 million tons through debottlenecking
• Significant plant overhauling completed, positioned to become one of the lowest cost clinker producers
• Strong probability of setting up new clinker capacity at Sanghi as part of group expansion

Research report

companyname: Sanghi Industries Limited ticker: SANGHIIND sector: Cement and Building Materials Sanghi Industries Limited (SIL) is a cement manufacturer and a wholly controlled subsidiary of Ambuja Cements Limited, which in turn is part of the Adani Group. It operates India’s largest single-location integrated cement plant at Sanghipuram in Kutch, Gujarat. The plant has a clinker capacity of 6.6 million tonnes per annum (MTPA) and a cement capacity of 6.1 MTPA. It also holds one of India’s large...

Catalysts

capex, margin expansion, market share gain

Growth guidance

Revenue Growth: 20% YoY for Q3 FY26; Capacity Target: 155 MTPA by FY28

Management consistency

mixed