Shree Cement volumes surge 17% in Q1FY27 as margins face cost pressure
Shree Cement's Q1FY27 results show strong volume growth of 17% and a 156% jump in RMC sales, but profitability was pressured by rising input costs, leading to a decline in EBITDA and net profit despite revenue growth.
*this image is generated using AI for illustrative purposes only.
Shree Cement Limited reported a 17% year-on-year surge in cement sale volumes to 10.23 million tonnes for the quarter ended June 30, 2026 (Q1FY27), driven by targeted sales interventions and a premiumization push. However, the company’s standalone operating profit (EBITDA) contracted to ₹1,074 crore from ₹1,229 crore in Q1FY26, while net profit fell to ₹438 crore from ₹619 crore, reflecting heightened input costs linked to geopolitical tensions in West Asia.
Revenue Growth Amid Margin Compression
The company’s standalone revenue from operations rose to ₹5,623 crore in Q1FY27, up from ₹4,948 crore in the corresponding quarter of the previous year. Consolidated revenue reached ₹6,233 crore, compared to ₹5,281 crore in Q1FY26. Despite the top-line expansion, the standalone EBITDA margin narrowed significantly to 19.1% from 24.8% in Q1FY26. Management attributed the profit decline primarily to higher fuel and raw material costs resulting from the West Asia crisis.
| Metric | Standalone Q1FY27 | Standalone Q1FY26 | Consolidated Q1FY27 | Consolidated Q1FY26 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 5,623 | 4,948 | 6,233 | 5,281 |
| EBITDA (₹ Cr) | 1,074 | 1,229 | 1,272 | 1,333 |
| Net Profit (₹ Cr) | 438 | 619 | 531 | 644 |
Operational Highlights and Premiumization
Cement sale volumes grew by 17% to 10.23 million tonnes, while total sale volume (including clinker) increased by 17.2% to 10.49 million tonnes. A key strategic win was the rise in premium product sales, which now constitute 23.3% of total trade volume, up from 17.7% in Q1FY26. The company also improved its Thermal Substation Rate (TSR) to 5.1%, compared to 1.9% in the prior year period.
Neeraj Akhoury, Managing Director of Shree Cement Limited, stated that the quarter was marked by healthy demand momentum and continued progress on the premiumisation drive. He noted that the increase in premium products reflects brand strength and that the company remains focused on energy efficiency and digital-led productivity.
RMC Business Expansion
The Ready-Mix Concrete (RMC) business demonstrated robust growth, with volumes increasing by 156% year-on-year to 2.36 lakh cubic meters, up from 0.92 lakh cubic meters in Q1FY26. Shree Cement commissioned eight new RMC plants during the quarter, bringing its total operational footprint to 33 plants across 17 cities in 11 states.
Sustainability and Capex Updates
Shree Cement’s share of green electricity in total consumption stood at 65.2% in Q1FY27, up from 64% in Q1FY26. The company’s green power generation capacity is now 666.5 MW. CARE ESG Ratings Limited upgraded the company’s ESG rating score to 73.8 from 70.8, reaffirming the ‘CareEdge-ESG 1’ symbol.
Regarding capital expenditure, work on the proposed greenfield integrated plant in Meghalaya is progressing satisfactorily, with major machinery orders placed. The project is expected to be completed by the quarter ended March 31, 2028.
What the Numbers Show
The divergence between strong volume growth (17%) and declining profitability (EBITDA down 12.6%) highlights the immediate impact of external cost shocks on Shree Cement’s margins. While the premiumization strategy successfully improved the product mix, it was insufficient to offset the fuel cost inflation in the short term. The rapid expansion of the RMC business suggests a strategic pivot towards higher-margin downstream products to mitigate volatility in the bulk cement segment.
Historical Stock Returns for Shree Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.51% | -2.87% | +3.19% | -3.45% | -14.83% | -7.82% |
How might the company adjust its pricing strategy in upcoming quarters to offset persistent fuel cost inflation driven by West Asian geopolitical tensions?
What is the expected timeline for the newly commissioned RMC plants to contribute significantly to consolidated EBITDA, and will this offset margin compression in the core cement business?
Could the premiumization push face resistance from price-sensitive segments if input costs continue to rise, potentially slowing volume growth?
20
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
