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Informist, Friday, Feb. 6, 2026

 

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--Shree Cement: To achieve 72 mln tn total capacity by March 
--Shree Cement: Dividend payout for FY26 to be better than FY25 
--Shree Cement: Priority is to get better realisations vs volume growth 
--Shree Cement: FY27 capex requirement seen at nearly INR 5 bln as of now 
--Shree Cement: Unhappy with current capacity utilisation, taking correctives 
--Shree Cement: Apr-Dec capex at INR 15 bln; Jan-Mar capex seen at INR 5 bln 
--Shree Cement: May switch to alternative fuel if pet coke price rises 
--Shree Cement: Prices in Dec much better, expect trend to continue 
--Shree Cement: Price realisation improved in Dec to INR 4,652 per tn 
--CONTEXT: Shree Cement management's comments in post-earnings analyst call 
--Shree Cement: To up ready-mix concrete plants in six mo to 45 from 19 now 

 

By Narayana Krishna and Shruti Nair

 

HYDERABAD/MUMBAI - Shree Cement Ltd. on Friday said the company is now more focused on getting better realisations, rather than racing for volume growth, to improve profitability. "The strategy is value vs volumes," the company's senior management said in a post-earnings conference call.

 

Shree Cement has reported 2% volume growth for the December quarter, while its price realisation improved to INR 4,652 per tonne from INR 4,554 a year ago. The company said it has changed the discounts and rebate system too in recent quarters to improve the realisations. The company said it is also working on bridging the price gap between the company's products and top-selling brands to INR 15 from INR 30 earlier.

 

For the December quarter, Shree Cement reported a consolidated net profit of INR 2.79 billion on a revenue of INR 44.16 billion.

 

Shree Cement's management said cement prices in the country have been much better in December, and it expects this price trend to continue in the coming months.

 

The company said it was not happy with the current plant utilisation levels, adding that 75% of utilisation is ideal to get better realisation for a plant. The company is working on cost optimisation by controlling fuel costs. Shree Cement said its plants were equipped to switch to alternate fuels if pet coke prices increased. Currently, the company is using 76% pet coke as fuel, with the remaining from coal and other alternate fuels. The company is also managing costs by using its renewable energy sources.

 

On the capital expenditure front, the company has spent INR 15 billion during Apr-Dec of the current fiscal and expects to incur another INR 5 billion as capital expenditure in Jan-Mar. For FY27, the company is yet to finalise the full capital expenditure plan, but the visible requirement as of now is INR 5 billion, the management said.

 

The company plans to expand its ready-mix-concrete plants to 45 units, from the current 19, over the next six months, with an investment of INR 1.5 billion. The company's total cement capacity will touch 72 million tonnes by March, the management said. Responding to the cash utilisation, Shree Cement's management said the dividend payout for FY26 is going to be better compared to FY25.

 

On Friday, Shree Cement's shares ended at INR 27,330 on the National Stock Exchange, up 0.4% from the previous close.  End

 

Edited by Tanima Banerjee

 

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