Shree Cement Ltd (SHREECEM)
🎯 Key Takeaways
- Shree Cement is transitioning from a fragmented, asset-heavy cement operator to a consolidated, growth-oriented enterprise with a clear focus on volume expansion, margin improvement, and sustainability leadership. The company is in a strategic reinvestment and scaling phase, targeting 40 million tons of volume by FY27-28 and improved RMC margins, supported by capex and operational efficiency gains.
- Revenue grew 2.2% QoQ to ₹6,233 in Q1FY27.
- ⚠️ Fuel cost volatility remains a concern, with management citing Middle East supply constraints; any escalation could pressure margins despite expectati
📖 The Story
Shree Cement is transitioning from a fragmented, asset-heavy cement operator to a consolidated, growth-oriented enterprise with a clear focus on volume expansion, margin improvement, and sustainability leadership. The company is in a strategic reinvestment and scaling phase, targeting 40 million tons of volume by FY27-28 and improved RMC margins, supported by capex and operational efficiency gains.
📰 What's Happening
In Q1 FY27, Shree Cement reported consolidated volume growth of 15% YoY to 114.5 MT, with EBITDA at INR 1,272 million and realization rising to INR 4,919 per MT from INR 4,854 in the prior quarter, driven by premiumization and improved trade mix. The company highlighted regional growth in South (16.9 lakh tons) and North (20% growth), while East utilization remained flat due to coal quality issues. Capex of INR 456 crores was deployed in Q1, with INR 1,500 crores planned for FY27-28. RMC revenue reached INR 109 crores, and clinker factor was reduced to 1.50. Management emphasized consolidated reporting for the first time, targeting 10% industry-beating growth and RMC EBITDA margin of 5%. Additionally, the company received an upgraded CRISIL ESG rating of 61 (from 57), with the category upgraded to 'Strong' and a CRISIL Core ESG 66 score, reflecting enhanced sustainability performance. A final dividend of Rs 70 per share (700% of face value) was declared for FY25-26, payable after the AGM on July 31, 2026, to shareholders on the record date of July 17, 2026.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 4,761 | 4,801 | 6,101 | 6,233 |
| Operating Profit | 306 | 237 | 622 | 586 |
| OPM % | 6.4% | 5.0% | 10.2% | 9.4% |
| Net Profit | 310 | 268 | 528 | 531 |
| EPS | ₹85.50 | ₹73.92 | ₹145.70 | ₹146.67 |
Revenue has shown consistent growth over the past four quarters, rising from ₹4,761 crores in September 2025 to ₹6,233 crores in June 2026, with consolidated total income reaching ₹6,444.84 crores in Q1 FY27. Operating profit margins have fluctuated but remain structurally improving, with OPM at 9.4% in June 2026, up from 5.0% in December 2025, despite pressure from fuel and raw material costs. Net profit has grown steadily, from ₹268 crores in December 2025 to ₹531 crores in June 2026, supported by volume growth and premiumization. However, operating profit declined YoY to ₹1,074 crores in Q1 FY27 from ₹1,333 crores in the prior year, indicating cost headwinds. The company’s profitability is being pressured by input costs, but margin expansion is expected through scale, operational efficiency, and premium product mix, as highlighted in management commentary.
🔮 Management Outlook & What's Next
Management has provided forward-looking guidance, targeting 40 million tons of volume in FY27-28, with capex of INR 1,500 crores planned for the year. They expect fuel costs to stabilize at 1.95 INR/kcal ± 0.03 if Middle East conditions remain calm. The company is focused on volume growth, premiumization, and ESG initiatives, with a greenfield plant commissioning scheduled for Q4 FY28. RMC EBITDA margin is targeted at 5%, and consolidated results are now the reporting standard, aiming for 10% industry-beating growth. Management also emphasized sustainability progress, including 65.2% green electricity usage and an upgraded CRISIL ESG rating of 61 with 'Strong' category and CRISIL Core ESG 66 score.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 36 | 36 | 36 | 36 |
| Reserves | 20,843 | 21,502 | 22,406 | 23,231 |
| Borrowings | 1,682 | 1,046 | 2,142 | 1,594 |
| Total Liabilities | 27,859 | 28,492 | 30,200 | 31,476 |
| Fixed Assets | 9,550 | 9,221 | 9,143 | 11,207 |
| Investments | 6,943 | 7,849 | 8,684 | 10,272 |
| Total Assets | 27,859 | 28,492 | 30,200 | 31,476 |
The balance sheet shows a strong equity base of ₹36 crores plus reserves of ₹23,231 crores as of March 2026, with total assets at ₹31,476 crores. Borrowings remain low at ₹1,594 crores, down from ₹2,142 crores in the prior year, indicating effective deleveraging. The capital structure is conservative, with minimal debt and a focus on internal funding, as capex is being financed through cash flows and retained earnings rather than external borrowing. This financial discipline supports sustainable growth and reduces financial risk, aligning with management’s long-term capital allocation strategy.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +3,794 |
| Investing | -3,740 |
| Financing | -110 |
| Net Cash Flow | -55 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 62.5% | 62.5% | 62.5% | 62.5% |
| FII | 10.3% | 10.1% | 8.9% | 8.2% |
| DII | 14.6% | 14.8% | 16.0% | 16.7% |
| Public | 1.8% | 1.8% | 1.7% | 1.7% |
| # Shareholders | 26,178 | 28,755 | 29,592 | 27,345 |
Institutional investor interest has declined slightly over the past year, with FII holding decreasing from 10.33% in Q2FY26 to 8.22% in Q1FY27, while DII holdings have remained relatively stable around 14-16%. Promoter holding remains stable at 62.55% across all quarters, indicating no signs of promoter selling. The number of shareholders has increased to 27,345 in Q1FY27 from 26,178 in Q2FY26, suggesting broader retail participation. There are no indications of significant stake sales by promoters or institutions, and the stable promoter holding supports governance continuity.
⚖️ Peer Comparison — Cement
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| ULTRACEMCO | 3.39 L Cr | 39.6 | 13.4% | 11.2% | 0.30 |
| AMBUJACEM | 1.00 L Cr | 22.6 | 4.9% | 8.8% | 0.00 |
| SHREECEM | 85,520 | 52.5 | 9.6% | 7.0% | 0.07 |
| JKCEMENT | 39,681 | 42.0 | 13.7% | 13.3% | 0.86 |
| DALBHARAT | 34,654 | 37.1 | 6.9% | 5.3% | 0.38 |
| ACC | 23,997 | 12.6 | 9.3% | 9.3% | 0.00 |
| RAMCOCEM | 20,828 | 32.3 | 10.1% | 7.9% | 0.48 |
| JSWCEMENT | 17,178 | 21.9 | 10.2% | 11.0% | 0.62 |
| INDIACEM | 11,474 | 124.2 | 1.8% | 0.9% | 0.13 |
| NUVOCO | 11,395 | 29.5 | 7.6% | 4.3% | 0.42 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Fuel cost volatility remains a concern, with management citing Middle East supply constraints; any escalation could pressure margins despite expectations of stabilization. 2. East region utilization remains flat due to coal quality issues, limiting growth potential in a key market. 3. Operating profit declined YoY in Q1 FY27 to ₹1,074 crores from ₹1,333 crores, indicating sensitivity to input cost inflation, which could persist if raw material or energy prices rise. 4. The company’s growth strategy relies on execution of capex projects and volume expansion, which may face delays or cost overruns, particularly in the Northeast plant commissioning scheduled for Q4 FY28.
📋 Recent Filings
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🟡 sustainability report 20 August 2026Shree Cement received an ESG rating of 61 from CRISIL ESG Ratings & Analytics, reflecting an upward revision of four points from the previous score of...
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🔴 Financial Results 6 August 2026Shree Cement reported consolidated volume of 114.5 MT in Q1 FY27, up 15% YoY, with operational EBITDA at INR 1,272 million and EBITDA per ton at INR 1...
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Announcement 3 August 2026Shree Cement disclosed the death of Senior Advisor (Finance) Ashok Bhandari on August 3, 2026, effective immediately, removing him from the senior man...
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🔴 Financial Results 31 July 2026Shree Cement reported consolidated net revenue of ₹5,623 crore for Q1 FY27, up from ₹5,281 crore in Q1 FY26, driven by 17% volume growth and premiumiz...
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🟡 Board Meeting 31 July 2026The Board of Shree Cement approved unaudited standalone and consolidated financial results for Q1 June 2026 during a meeting held on 31 July 2026. The...
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Announcement 24 July 2026Shree Cement announced a conference call on July 31, 2026 at 5:00 PM IST to discuss Q1FY27 financial results, inviting investors to listen to manageme...
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🔴 Corporate Action 10 July 2026Shree Cement announced a final dividend of Rs 70 per share (700% of Rs 10 face value) for FY 2025-26, payable after shareholder approval at the AGM on...
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🔴 annual report 8 July 2026Shree Cement Limited announced that shareholders without registered email addresses will receive a web link to the Notice of AGM and Integrated Annual...
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🔴 Announcement 1 July 2026Shree Cement reaffirmed its AAA long-term and A1+ short-term bank facility ratings from CARE Ratings, maintaining stable outlooks across all debt inst...
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Financial Results 22 June 2026Shree Cement announced a board meeting on 31 July 2026 to approve un-audited financial results for the quarter ending 30 June 2026, with trading close...
🧠 Analyst's Read
Shree Cement is executing a clear strategic shift toward consolidated reporting, volume growth, and margin expansion, supported by strong ESG credentials and disciplined capital allocation. The key watchpoints are fuel cost trends, execution of capex plans, and sustained premiumization in RMC. While profitability is under short-term pressure, the long-term trajectory is constructive if operational improvements materialize as guided.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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