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Shree Cement revenue increased by 13.6% YoY

ICICIdirect Research 03 Aug 2026 DISCLAIMER

News: Shree Cement revenue increased by 13.6% YoY (-0.4% QoQ) to Rs 5622.7 crore led by robust volume growth of 17.2% YoY (-2.6% QoQ) and decline in realization by 3% YoY (+2.3% QoQ). Total cost/ton increased 4.3% YoY (+6.3% QoQ) mainly due to increase in power and fuel cost and packaging cost. EBITDA/ton declined by 25.4% YoY (-11.8% QoQ) to Rs 1024/ton. Absolute EBITDA decreased by 12.6% YoY (-14.1% QoQ) to Rs 1074.5 crores. PAT decreased by 29.2% YoY (-17.7% QoQ) to Rs 438 crore

View: Volume growth improved on YoY basis due to improvement in utilisation levels (62% in Q1FY27 vs 57% in Q1FY26). However, overall operational performance was impacted due to higher costs mainly power and fuel and packaging cost. Going ahead we believe that there might be near term pressure due to higher costs (management indicate similar cost structure for Q2FY27) but performance might improve from H2FY27. Management also reiterate their volume guidance of ~40 mtpa for FY27E (which implies ~10% YoY growth). Overall operational performance of the company is expected to improve led by strong focus on operational efficiencies, increase in premiumization and pick-up in volume growth. Longer term volume growth visibility remains healthy as the company has room for improvement in capacity utilisation. On capacity front, total cement capacity stands at ~70 mtpa and targets to reach total cement capacity of ~80 mtpa by FY28E/29E

Impact: Neutral

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