Shree Cement reported robust Q4FY26 volume growth and improved realisations, but rising fuel, freight and packaging costs could pressure margins in FY27
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
Cement companies are likely to report healthy volume growth in Q4 FY26 on strong demand and capex push, but rising fuel and packaging costs may weigh on profitability and margins
Despite the two-day rally, in the past one month, cement companies stocks have underperformed the market by falling up to 17%, as against 8% fall in the BSE Sensex.
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On-going escalation of the Iran-Israel-US conflict tends to spike global crude oil prices, which in turn drive up petcoke and diesel prices, affecting cement manufacturers margins, say analysts.
Analysts at Centrum Research estimated aggregate industry volumes rose about 13 per cent Y-o-Y and 12 per cent sequentially, aided by a rebound in non-trade demand
Muted volumes and a miss on realisations weighed on Shree Cement's operating performance in Q3 FY26, even as lower depreciation helped lift net profit year-on-year
Leading cement makers reported strong double-digit year-on-year growth in sales volumes during the December 2025 quarter, even as their realisations came under pressure. The companies remain optimistic of further improvement in demand and prices in the coming months, aided by benign inflation, supportive tax rationalisation measures and healthy infrastructure-led growth. Industry leaders, including UltraTech, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement and JSW Cement, saw higher capacity utilisation and expansion in volumes. However, overall profitability was impacted by rising input costs, provisions under new labour codes and elevated prices of pet coke and coal. Despite these challenges, toplines were supported by premiumisation, improved product mix and higher non-trade sales. Apart from grey cement, companies also reported robust growth in their Ready Mix Concrete (RMC) business, which registered high double-digit expansion. Leading cement maker UltraTech .
With industry peers increasingly adopting similar strategies, PL Capital highlighted that the company may need to recalibrate its approach, leveraging core strengths to accelerate volume growth
Low base, premium mix and new capacity supported gains