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
Rising fuel and packaging costs linked to the conflict may weigh on the sector's margins
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
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.
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
Shree Cements expects a strong rebound in cement volumes in the fourth quarter of the current financial year, aided by a pick-up in infrastructure activity and higher government spending towards the fiscal year-end, the management said in a Q3 analyst concall. The company is targeting sales volumes of 9-9.5 million tonnes in the January-March quarter. It noted that the Centre's push to utilise infrastructure allocations by March 31 is likely to support demand. While pricing remained a focus in the earlier part of the year, the company is now looking to ramp up capacity utilisation as volumes improve, an official said. Separately, Shree Cements outlined an aggressive expansion plan for its ready-mix concrete (RMC) business, with the company aiming to scale up its RMC footprint to 45 plants from the current 19 units over the next six to eight months. The management said the RMC push is part of a broader strategy to move up the construction value chain, adding that around 45 per cent
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
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While Nuvama Institutional Equities has reiterated its 'Hold' rating on Shree Cement, Choice Institutional Equities has maintained a 'Sell' call, citing expensive valuations and limited upside
Shree Cement Ltd, the country's third-largest cement group by capacity, on Tuesday, reported over fourfold jump in consolidated net profit to Rs 309.82 crore for the September quarter of FY26, helped by sales volume growth and premiumisation. The company had posted a net profit of Rs 76.64 crore in the July-September period a year ago, according to a regulatory filing from the Bangur family-promoted Shree Cement Ltd (SCL). Its revenue from operations was up 17.43 per cent to Rs 4,761.07 crore in the September quarter of FY26. It was at Rs 4,054.17 crore in the corresponding quarter of the preceding fiscal year. The revenue growth was "driven by volumes, premiumisation push and value over volume strategy adopted by the company", according to an earnings statement by the company. Total expenses of SCL were at Rs 4,506.37 crore, up 7 per cent in the September quarter. Though the company has not specified the total sales volume, however, said it was "up by 6.8 per cent on a YoY ...
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Reliance Industries, IndiGo, DLF, Ambuja Cements and Shree Cement can potentially rally up to 24 per cent from present levels, suggest technical charts.
Cement shares rally on Monday: Analysts view the potential GST rate cut as a sentimental booster for the sector given it may help perk up industry margins.