Shree Cement gains 4% after in-line Q4; brokerages see up to 12% upside

Shree Cement's revenue from operations rose 10.3 per cent year-on-year to ₹6,101 crore from ₹5,532 crore in the corresponding quarter of the previous fiscal

Shree Cement share price today

Shares of Rajasthan-based cement maker Shree Cement gained nearly 4 per cent to a high of ₹25,950 on the National Stock Exchange (NSE) after the company reported March 2026 quarter (Q4FY26) results in line with market expectations. 

 

Around 11:10 AM, the stock was trading at ₹25,745, up 3 per cent from the previous session's close of ₹24,975. In comparison, the benchmark NSE Nifty50 index was trading at 24,317.90 levels, down by a marginal 13.05 points or 0.05 per cent. On a year-to-date basis, the stock has plunged 6 per cent, compared to a 6.8 per cent decline in Nifty50.

 

 

The company's market capitalisation stood at ₹92,800 crore. Its 52-week high was ₹32,490, and its 52-week low was ₹22,550. 

Shree Cement Q4 result highlights

In the March 2026 quarter, Shree Cement reported a consolidated net profit of ₹526 crore, down 8.6 per cent from ₹54 crore in the year-ago period. 

 

Its revenue from operations rose 10.3 per cent year-on-year (Y-o-Y) to ₹6,101 crore from ₹5,532 crore in the corresponding quarter of the previous fiscal. 

 

The company's earnings from interest, tax, depreciation, and amortisation (Ebitda) slipped 3 per cent to ₹1,384 crore from ₹1,429 crore in the year-ago quarter. Ebitda margin also narrowed to 22.6 per cent from 25.8 per cent. 

 

Additionally, the company's board of directors has recommended a final dividend of ₹70 per equity share, against a face value of ₹10 for FY26. 

 

Shree Cement reported a cement sales volume of 10.56 million tonnes, up 11 per cent Y-o-Y from 9.52 million tonnes, and a 24.5 per cent increase on a sequential basis. Its total volume, including clinker sales, stood at 10.77 million tonnes in Q4FY26, up 9.4 per cent from 9.84 million tonnes in the year-ago period. 

 

Sales of premium products jumped to 22 per cent of total trade volume compared to 16 per cent in the corresponding quarter of the previous year, the company said. 

 

The company is rapidly expanding its RMC business with 26 operational plants at the end of FY25-26. "During the month of March 2026, the company inaugurated 10 new commercial RMC plants, which are currently under commissioning. With the commissioning of these plants, the total RMC plant count will increase to 36 plants, significantly strengthening the company’s operational footprint at the start of FY27," the company said in its filing.  Check - TOP GAINERS NSE | TOP LOSERS NSE

Brokerages on Shree Cement

According to PL Capital, Shree Cement reported an in-line operational performance in Q4FY26, supported by strong volume growth of 9.5 per cent Y-o-Y and improved realisations driven by price hikes and a higher share of premium products.

 

The brokerage noted that freight costs rose due to higher lead distance, while raw material costs remained elevated. However, the renewable energy contribution of 61 per cent and improved thermal efficiency supported margins.

 

Management has guided for cement volume growth of around 9-10 per cent in FY27, while near-term costs are expected to rise due to higher fuel and packaging expenses. The company has also reduced FY27 capex plans to ₹15 billion from ₹30 billion earlier, focusing on improving utilisation levels and expanding into the North-East market.

 

PL Capital said pricing in key markets has largely stabilised, and the company will now focus on improving volumes and profitability. It maintained its ‘Accumulate’ rating on the stock with a revised target price of ₹27,907, down from ₹27,370 earlier.

 

HDFC Securities also said the company delivered a healthy Q4FY26 performance, with India sales volume growth improving to 10 per cent YoY versus a 1 per cent decline in 9MFY26, driven by a strong push across trade and non-trade channels. The share of trade sales declined to a multi-quarter low of 64 per cent.

 

The brokerage noted that higher input and freight costs partly offset the benefits of cement price recovery and operating leverage gains. Unit Ebitda increased by ₹112 per tonne sequentially to ₹1,161 per tonne, while consolidated volumes rose 9 per cent Y-o-Y and consolidated unit Ebitda improved by ₹137 per tonne Q-o-Q to ₹1,160 per tonne.

 

HDFC Securities highlighted that Shree Cement’s net cash balance expanded to ₹67 billion amid lower capex spending. It expects the company to deliver standalone volume and Ebitda CAGR of 6.5 per cent and 9 per cent, respectively, over FY26-FY28E.

 

The brokerage has maintained its ‘Add’ rating on the stock with an unchanged target price of ₹27,000 per share, based on 16.5x FY28E Ebitda.  ==========================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.