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Informist, Wednesday, May 6, 2026

 

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--Shree Cement: Capex guidance for FY27 at INR 15 bln 
--CONTEXT: Comments by Shree Cement's mgmt in post-earnings analyst call 
--Shree Cement: Capacity utilisation in Q4 at 66%, up from 56% in Q3 
--Shree Cement: See cement demand growth rate rising in tandem with GDP 
--Shree Cement: Revenue from ready-mix-concrete at INR 900 million Jan-Mar 
--Shree Cement: Saw slowdown in cement demand after Apr 15 
--Shree Cement: Remain focused on profitability, not volumes 

 

By Astha Oriel and Pallavi Singhal

 

NEW DELHI – Shree Cement Ltd. sees capital expenditure in the financial year 2026-27 (Apr-Mar) at INR 15 billion, the management told analysts in a conference call after announcing its results for the March quarter and the financial year 2025-26 (Apr-Mar). The company also expects to achieve sales volume of 40 million tonnes in FY27.

 

"The guidance we have been maintaining is 1% over the average industrial growth rate," a senior management official of Shree Cement said. "However, we expect to reach about 40 million tonnes this year." In the March quarter, the company's total cement sales volume grew 11% on year to 10.56 million tonnes.

 

For the March quarter, the company's capacity utilisation increased to 66% from 56% in the December quarter. Capacity utilisation in the north was 70%, 60% in the east, and 61% in the south, the management said. The cement major's standalone net profit for the March quarter declined over 4% on year to INR 5.32 billion. Revenue from operations rose nearly 8% on year to INR 56.43 billion.

 

The company's revenue from readymix concrete was INR 900 million in the March quarter. In the wake of the West Asia crisis, Shree Cement saw a slowdown in demand after Apr. 15, the management said. The company expects per kilogram freight cost to rise to INR 100 in the June quarter from INR 90 in the March quarter. It expects the cost of packaging to be around INR 100 per tonne in the June quarter.

 

The company expects the cement demand growth rate to rise in tandem with India's GDP in FY27. "The bedrock of economic growth is steel and cement. If India needs to grow at 7%, steel and cement should grow at least in tandem, if not more...," the management said. "So, we should do around 7.1%, 7.2?ment demand growth rate."

 

Going ahead, the company aims to focus on profitability instead of volumes. "We would like to have now our fair and proper market share," the management said. "That doesn't mean we will go into a price war and push volumes. Profitability is the prime focus." 

 

Wednesday, the company's shares ended at INR 24,975 on the National Stock Exchange, up 0.5% from Tuesday.  End 

 

Edited by Rajeev Pai

 

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