Leading cement makers recorded 7-8 per cent volume growth in Q1FY27, but higher fuel, packaging and other input costs offset price gains and weighed on profitability
Shree Cement Ltd on Friday reported a 17.48 per cent decline in consolidated net profit to Rs 531.12 crore in the June quarter of FY27 due to higher input costs. The company had posted a net profit of Rs 643.66 crore in the April-June period a year ago, the Bangur family-promoted firm said in a regulatory filing. The country's third largest cement group by capacity registered an 18 per cent growth in revenue from operations to Rs 6,233.13 crore in the June quarter of FY27, compared to Rs 5,280.88 crore in the corresponding quarter of the preceding fiscal. The company's operating profit declined due to higher fuel and raw material costs resulting from the impacts of the West Asia crisis, an earnings statement said. Cement sales volume grew by 17 per cent year-on-year to 10.23 million tonnes (MT) in Q1 FY27, compared to 8.74 MT in Q1 FY26. Total sales volume (including clinker) grew by 17.2 per cent to 10.49 MT from 8.95 MT. Its Ready-Mix Concrete (RMC) business witnessed high growt
Looking beyond the Q1, analysts expect domestic cement demand to grow at a healthy 6-8 per cent CAGR over FY27-FY29, driven by sustained public infra investments and housing demand.
Strong infrastructure demand and a favourable base are expected to drive Q1 FY27 cement volumes, but rising fuel and input costs may weigh on margins despite better realisations
Stocks to watch today: TCS, SBI, Tata Steel, GMR Airports, M&M, HFCL, RIL, Fortis Healthcare, JSW Infra, Swiggy, Pidilite, Shree Cement, among others, will be in focus today
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.
Stocks to Watch today, March 18: Tata Steel, Tech Mahindra, Varun Beverages, Shree Cement, and Aurobindo Pharma are among the top stocks to watch today
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