Market Performance
Shree Cement share price is under the spotlight after the company posted a strong financial performance for Q1FY26. The market reacted positively as the cement major reported robust growth in profit and operating margins, despite a modest increase in revenue.
Main News: Net Profit Surges Despite Marginal Revenue Growth
Shree Cement announced its Q1FY26 results on August 4, showcasing a 95% year-on-year surge in net profit, which stood at ₹619 crore, compared to ₹318 crore in Q1FY25.
However, consolidated revenue for the quarter saw a muted growth of just 2%, reaching ₹4,948 crore from ₹4,835 crore in the same quarter last year.
Company Details
- Sales Volume: Shree Cement reported a total sales volume of 89.5 lakh tonnes during the quarter.
- Premium Product Mix: The share of premium products rose to 17.7%, up from 15.6% in Q4FY25.
- UAE Operations: Its UAE subsidiary recorded a 19% YoY revenue growth, hitting AED 181.19 million, with EBITDA skyrocketing 397% from AED 9.02 million to AED 44.86 million.
Financial Overview
Revenue
- Q1FY26: ₹4,948 crore
- Q1FY25: ₹4,835 crore
- Growth: 2% YoY
EBITDA (Operating Profit)
- Q1FY26: ₹1,229 crore
- Q4FY25: ₹916 crore
- Growth: 34% QoQ
Net Profit
- Q1FY26: ₹619 crore
- Q1FY25: ₹318 crore
- Growth: 95% YoY
Expansion Plans and Capacity Growth
Shree Cement continues to make strategic moves to boost its cement production capacity:
- Rajasthan (Jaitaran) and Karnataka (Kodla) integrated cement projects, each of 3.0 MTPA, are progressing as per schedule.
- Post commissioning, the company’s total capacity will increase to 68.8 MTPA.
- The long-term target remains to achieve 80 MTPA capacity by 2028.
Additionally, its UAE-based subsidiary, Union Cement Company, has announced an investment of AED 110 million to expand capacity by another 3.0 MTPA in response to regional demand.
Summary of the Article
Shree Cement share price is poised to remain in investor focus following the release of a solid Q1FY26 performance. With a 95% jump in net profit, improved operating margins, and consistent capacity expansion, the cement giant is demonstrating operational resilience and financial stability.
Despite modest revenue growth, the company has successfully leveraged premium product sales and operational efficiencies to boost profitability. Its UAE operations continue to deliver strong results, adding to the overall performance narrative.
With current expansion plans on track and a clear vision for future growth, Shree Cement share price remains a key stock to watch in the cement sector.
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