India Cements arm to sell entire stake in Indonesian unit

India Cements Ltd said its subsidiaries — PT Coromandel Minerals Resources, Indonesia, and Raasi Minerals Pte Ltd, Singapore — have entered into a share sale and purchase agreement to divest their entire equity investment in PT Adcoal Energindo, Indonesia, for a proposed consideration of IDR 10 billion (approximately ₹5.4 crore).

Once completed, PT Adcoal will cease to be a subsidiary, and PT Mitra Setia Tanah Bumbu, in which PT Adcoal holds a 49% stake, will also cease to be an associate company.

PT Adcoal is not a material subsidiary and contributed only 0.5% to the company’s turnover in FY25. India Cements said the sale agreement was signed on December 2, 2025 and is expected to be completed within six months.

The company also clarified that the transaction is not a related-party deal, and the buyers — two Indonesian citizens — have no links to the promoter group.

The update comes shortly after India Cements reported a sharp turnaround in its Q2 FY26 performance. The company posted a net profit of ₹8.8 crore, compared to a ₹339 crore loss a year earlier. Revenue rose 9.3% year-on-year to ₹1,117 crore, while EBITDA came in at ₹81.7 crore, reversing a loss of ₹163 crore in Q2 FY25.

To strengthen its longer-term growth, the company recently approved a capital expenditure plan of ₹15,740 crore for modernisation and announced plans to invest ₹4,400 crore to add 2.8 million tonnes of cement capacity.

Ahead of the announcement, shares of India Cements closed at ₹383 on the NSE, down 0.94%.