Shree Cement Limited filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with the National Stock Exchange of India Limited and BSE Limited. The filing, submitted by Company Secretary S.S. Khandelwal, details the company's performance on environmental, social, and governance parameters. The report highlights that the company achieved water positivity of more than eight times, indicating that it replenishes more water than it consumes. Additionally, the company expanded its renewable energy footprint, advancing toward its RE100 ambition through increased use of waste heat recovery, solar, and wind power.

The company reported a total workforce of 24,657 individuals, comprising 7,962 employees and 16,695 workers. The gender diversity stood at 1.8% for employees and 1.1% for workers. In terms of safety, the company recorded zero fatalities for employees and permanent workers, while four contract workers lost their lives during the reporting period. The Lost Time Injury Frequency Rate (LTIFR) for workers was 0.21 per million person hours worked, compared to 0.05 in the previous year. The company spent 0.06% of its total revenue on well-being measures for employees and workers.

Environmental Performance

Shree Cement disclosed its total energy consumption for the year as 1,07,249 Terajoules (TJ), with energy intensity per rupee of turnover recorded at 5.55 TJ/₹ Crore. The company reported total Scope 1 emissions of 2,20,31,435 metric tonnes of CO2 equivalent and Scope 2 emissions of 3,13,672 metric tonnes of CO2 equivalent. The combined emission intensity stood at 562 kg CO2e per tonne of cementitious material produced. The company has set a target to reduce Scope 1 carbon intensity to 0.51 Tonnes CO2/tonne cementitious material and Scope 2 intensity to 0.005 tCO2/Tonnes cementitious material by 2030.

Water withdrawal totalled 27,89,401 kilolitres, with a water intensity of 0.0677 kilolitres per tonne of cement production. The company maintained a Zero Liquid Discharge status across all manufacturing locations. Total waste generated amounted to 16,933.43 metric tonnes, with 16,932.30 metric tonnes recovered through recycling. The waste intensity per rupee of turnover was 876.9 kg/₹ Cr.

Governance and Stakeholder Engagement

The report confirms that the Board of Directors approved policies covering all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). The CSR and Sustainability Committee provides oversight on sustainability-related matters. The company identified material issues such as climate change, water management, and cybersecurity as risks, while waste management and low-carbon products were noted as opportunities. Independent assessment for BRSR Core was provided by SGS India Private Limited.

Stakeholder grievances included 377 customer complaints, all of which were resolved during the year. The company received 17 complaints from communities, with eight pending resolution at the end of the year. There were no reported instances of anti-competitive conduct, fines, or penalties during the financial year. The company continues to engage with trade associations such as the Confederation of Indian Industry (CII) and the Cement Manufacturers' Association (CMA) to advocate for low-carbon roadmaps and enhanced use of blended cement.

Shree Cement has received a notable upgrade from global brokerage firm HSBC, which has revised its rating on the stock to Buy and assigned a target price of ₹30,780. The upgrade reflects a constructive outlook on the company's operational and financial trajectory, anchored by several key industry and company-specific factors.

HSBC Upgrade: Key Highlights

The following table summarises the key parameters of HSBC's upgraded rating on Shree Cement:

Rationale Behind the Upgrade

HSBC's upgrade to Buy is supported by three primary factors. First, the brokerage expects Shree Cement to deliver industry-leading volume growth, positioning the company ahead of its peers in terms of capacity utilisation and demand capture. Second, margins are anticipated to improve in the second half of FY27, with lower crude prices expected to ease input cost pressures and support profitability. Third, capacity discipline within the industry is seen as a key structural factor that underpins the company's valuation, reducing the risk of oversupply and pricing pressure.

Valuation and Market Context

The target price of ₹30,780 set by HSBC reflects the brokerage's confidence in Shree Cement's ability to leverage favourable macro conditions, including softening raw material costs and a disciplined competitive environment. The combination of volume momentum and margin recovery in 2HFY27 forms the core of the investment thesis presented by HSBC in its upgrade note.