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Informist, Thursday, Jul. 30, 2026

 

By Astha Oriel 

 

NEW DELHI – Shree Cement Ltd. is likely to report a sharp year-on-year decline in its net profit for the June quarter of the financial year 2026-27 (Apr-Mar), according to brokerages tracking the company. Seasonal weakness and increase in cost of fuel and logistics across the industry due to war in West Asia are likely to offset any benefit from price hikes taken during the quarter, thus denting profitability. However, net sales are seen higher year-on-year due to an increase in volumes.  

 

The company's June quarter net profit is seen falling nearly 27% on year and about 15% sequentially to INR 4.54 billion, according to the average of estimates by 15 brokerages. HDFC Securities Ltd. has the highest estimate for net profit of INR 5.80 billion while Bank of America global research has the lowest estimate of INR 3.37 billion. If realised, this is likely to be the second consecutive quarter of an on-year decline in net profit. However, the on-year fall in net profit will be much sharper than in the previous quarter. 

 

The company's net sales are expected to be INR 54.72 billion, up nearly 11% on year but down over 3% on quarter, according to the average of estimates. Bank of America global research has the highest estimate for net sales of INR 58.34 billion while Systematix Shares and Stocks (India) Ltd. has the lowest estimate of INR 50.70 billion. If realised, this is likely to be the sixth consecutive quarter of an on-year rise in revenue. 

 

Shree Cement's net sales volume is likely to have increased in the reporting quarter and be in the range of 9.4 million tonnes–10.40 million tonnes, according to estimates of seven brokerages. In the year-ago quarter, the company's net sales volume was 8.95 million tonnes. 

 

The aggregate volume for the sector is estimated to have increased 7% on year in the June quarter owing to increase in construction activities, according to analysts. Cement output in the country rose 9.4% on year in April and 8.4% in May, as per data released by the commerce ministry. The company's net sales realisation are seen in the range of INR 5,023 – INR 5,449 per tonne, according to eight brokerages. In the year-ago quarter, the company's net sales realisation per tonne was INR 5,528.

 

The company's earnings before interest, taxes, depreciation, and amortisation are estimated at INR 11.29 billion, down over 8% on year and nearly 10% on quarter, according to the average of estimates by 13 brokerages. Nirmal Bang Equities Pvt. Ltd. has the highest estimate of EBITDA at INR 11.95 billion, whereas Systematix Shares and Stocks (India) Ltd. has the lowest estimate at INR 10 billion. 

 

The company's June quarter EBITDA per tonne is expected to be INR 1,061–INR 1,189, according to estimates by nine brokerages. Four brokerages estimate the company's EBITDA margin to be 19.6-21.2% in the June quarter.

 

Axis Securities Ltd. estimates the operating cost per tonne to increase by 5% sequentially, and 3% on year to INR 4,620 per tonne, led by higher power and fuel costs and logistics costs. Four brokerages estimates Shree Cement's operating costs per tonne to be INR 4,210-INR 4,484. The company's cost per tonne was INR 4,155 per tonne in the year-ago quarter. The company will announce June quarter earnings on Friday. 

 

Thursday, shares of the company closed over 1% lower at INR 26,455 on the National Stock Exchange. This is over 3% higher than the company's March quarter earnings on May. 6.

 

Of the 15 brokerage reports on the company available with Informist, 10 have a "buy" recommendation on the stock with an average target price of INR 29,278 per share. This is nearly 11% higher than the current share price. Four brokerages have given a "hold" recommendation with an average target price of INR 27,705 per share, and one has a "sell" recommendation with a target price of INR 23,696 per share. 

 

Following are the June quarter earnings estimates for Shree Cement from 15 brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGES	Net Sales	Net Profit	EBITDA
HDFC Securities Ltd	53.47	5.80	10.84
Prabhudas Lilladher Pvt Ltd	54.32	5.52	11.28
Elara Securities (India) Pvt Ltd	56.34	5.25	11.41
Axis Securities Ltd	51.21	4.94	10.83
360 ONE Capital Market Pvt Ltd	56.45	4.83
Motilal Oswal Financial Services Ltd	55.20	4.60	11.50
Nirmal Bang Equities Pvt Ltd	54.26	4.54	11.95
JM Financial Institutional Securities Pvt Ltd	55.69	4.41	11.68
Anand Rathi Share and Stock Brokers Ltd	52.14	4.28
Kotak Securities Ltd	55.90	4.24	11.47
Nuvama Wealth Management Ltd	54.00	4.23	11.18
PhillipCapital (India) Pvt Ltd	55.38	4.14	11.68
Nomura Equity Research	57.44	4.07	11.29
Systematix Shares and Stocks (India) Ltd	50.70	3.90	10.00
Bank of America global research	58.34	3.37	11.69
Average	54.72	4.54	11.29

End

 

Edited by Deepshikha Bhardwaj

 

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