Shree Cement Limited disclosed, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has received a GST demand order from the Assistant Commissioner, Central GST & Central Excise, Pali. The order was received on 11th May, 2026, and the disclosure was submitted to the stock exchanges on 12th May, 2026.

Details of the GST Demand Order

The demand order requires Shree Cement to pay service tax of ₹39,19,286 along with applicable interest and an equivalent penalty. The alleged violation pertains to non-payment of service tax. The following table summarises the key details of the demand order as disclosed by the company:

Company's Response and Financial Impact

Shree Cement has stated that the demand order does not have a major financial impact on the company. The company has indicated that it does not agree with the contentions imposing the demand and believes it has a strong case on merits. Accordingly, the company intends to file an appeal under Section 85 of the Finance Act, 1994, before the Commissioner (Appeals) within 2 months from the date of receipt of the order.

The disclosure was made by Company Secretary S.S. Khandelwal on behalf of Shree Cement Limited.

Shree Cement Limited, India's third-largest cement group by capacity, announced its financial results for the quarter and year ended March 31, 2026, at a Board meeting held on May 6, 2026. The Board approved audited standalone and consolidated financial results and recommended a final dividend of ₹70 per equity share of ₹10 each for FY 2025-26, subject to member approval at the ensuing Annual General Meeting. Combined with the interim dividend of ₹80 per share declared in October 2025, the total dividend for the year stands at ₹150 per share — a 36% increase over the ₹110 per share paid in FY 2024-25. The statutory auditors, B R Maheswari & Co LLP, issued an unmodified audit opinion on both standalone and consolidated financial results. In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the earnings conference call held on May 6, 2026, relating to the Q4 FY26 financial results, has been uploaded on the company's website. Pursuant to Regulation 47 of the SEBI LODR Regulations, the company also filed newspaper advertisement extracts with the stock exchanges on May 7, 2026, confirming the publication of the financial results for the quarter and year ended March 31, 2026.

Analyst Views

Following the Q4 FY26 results, leading brokerages have offered contrasting views on the stock. Citi maintains a Buy rating on Shree Cement with a revised target price of ₹29,200 (cut from ₹31,650), noting that stronger Q4 volumes and a continued volume-focused strategy offset weaker realizations and higher costs, while operational efficiencies are expected to support performance in a volatile environment. Morgan Stanley, however, maintains an Underweight rating with a target price of ₹25,500, citing concerns over cost inflation linked to the West Asia conflict that could pressure volumes and margins, despite strong recent results and FY27 volume growth guidance of 10% YoY. Sustainability of current performance remains the key monitorable for Morgan Stanley.

Operational Highlights

Shree Cement delivered robust operational performance during Q4 FY26, with total cement sale volume growing 11% year-on-year from 9.52 million tonnes to 10.56 million tonnes, while registering 24.5% growth on a quarter-on-quarter basis. Total volume including clinker sales rose 9.4% year-on-year from 9.84 million tonnes to 10.77 million tonnes, and increased 23.2% on a quarter-on-quarter basis. Premiumisation continued to gain traction, with sales of premium products jumping to 22% of total trade volume compared to 16% in the corresponding quarter of the previous year.

Commenting on the performance, Mr. Neeraj Akhory, Managing Director, Shree Cement Ltd., said: "We are happy to report a strong performance during the quarter, with domestic cement sale volume increasing 11% year-on-year, supported by proactive efforts to deepen customer engagement and expand market reach. The sharp quarter-on-quarter improvement in EBITDA and Profit After Tax reflects the effectiveness of our operational initiatives and revenue actions. While cost pressures persisted due to the impact of the West Asia conflict, we continue to strengthen our performance by improving energy efficiency, increasing digitalisation across operations, and leveraging data-driven processes to enhance productivity. With robust demand fundamentals and ongoing digital and sustainability-led interventions, we are confident of delivering sustainable and profitable growth in the coming quarters."

Standalone Financial Performance

Shree Cement delivered a strong standalone performance for FY26. Revenue from operations grew to ₹19,310.52 crore from ₹18,037.33 crore in FY25. Total income for the year stood at ₹19,907.35 crore against ₹18,614.49 crore in the prior year. Net profit for the year rose significantly to ₹1,706.25 crore compared to ₹1,196.23 crore in FY25. EBITDA for the full year improved to ₹4,788.07 crore from ₹4,413.91 crore in FY25. The following table summarises key standalone financial metrics:

On the standalone balance sheet, total assets as at March 31, 2026 stood at ₹30,095.13 crore compared to ₹27,755.90 crore as at March 31, 2025. Total equity increased to ₹22,511.60 crore from ₹21,211.39 crore. Net cash flow from operating activities for FY26 was ₹3,492.88 crore, while net cash used in investing activities was ₹3,466.35 crore.

Key Standalone Financial Ratios

The table below presents select standalone financial ratios for the quarter and year ended March 31, 2026:

Consolidated Financial Performance

On a consolidated basis, the Group — comprising Shree Cement Limited and its seven subsidiaries — reported revenue from operations of ₹20,943.47 crore for FY26, up from ₹19,282.83 crore in FY25. Total income for the year was ₹21,604.30 crore against ₹19,872.05 crore in FY25. Net profit attributable to owners of the company for FY26 stood at ₹1,743.56 crore, compared to ₹1,122.77 crore in FY25. Consolidated EBITDA for the year improved to ₹5,298.69 crore from ₹4,523.25 crore in FY25. Consolidated total assets as at March 31, 2026 were ₹31,475.69 crore versus ₹28,491.76 crore as at March 31, 2025, while net cash flow from operating activities on a consolidated basis was ₹3,794.07 crore for FY26.

Key Consolidated Financial Ratios

Capex and Capacity Expansion

During Q4 FY26, Shree Cement fully commissioned its integrated cement plant in Kodla, Kalaburagi District, Karnataka, adding significant capacity to its portfolio. With this commissioning, the company's installed cement production capacity in India (including wholly owned subsidiaries) increased to 69.3 MTPA, reinforcing its position as India's third-largest cement group.

To further expand capacity, the company is setting up an Integrated Cement Plant with clinker capacity of 0.95 MTPA and cement capacity of 0.99 MTPA in the state of Meghalaya. During the quarter, the company also incorporated a wholly-owned subsidiary to establish and operate cement, blending, storage, and packaging facilities in Mauritius. The company continues to pursue multiple expansion opportunities at various stages of pre-project development to achieve its growth milestones.

Ready-Mix Concrete Business

Shree Cement is rapidly expanding its Ready-Mix Concrete (RMC) business, with 26 operational plants at the end of FY 2025-26. During March 2026, the company inaugurated 10 new commercial RMC plants, which are currently under commissioning. With the commissioning of these plants, the total RMC plant count will increase to 36 plants, significantly strengthening the company's operational footprint.

Sustainability Initiatives

Shree Cement continued to make meaningful progress on its sustainability agenda during Q4 FY26. Key highlights include:

• The company's share of green electricity in total electricity consumption stood at 61% in Q4 FY26 (versus 59% in Q4 FY25), including wholly owned subsidiaries in India — one of the highest in the Indian cement industry.
• Green power generation capacity currently stands at 666.5 MW (including wholly owned subsidiary in India).
• All manufacturing locations are Zero Liquid Discharge, treating, recycling, and reusing 100% of wastewater generated from operations.
• The company maintained its water positivity index of >8 times in FY 2025-26, consistent with levels achieved in FY 2024-25.
• Shree Cement was recognised for the first time among India's Top 60 Most Sustainable Companies (IMSC) 2024-25 in the 5th edition of the IMSC Awards organised by BW Businessworld.

Labour Code Impact and Credit Ratings

Following the Government of India's notification of four Labour Codes on November 21, 2025, the company restructured employee compensation effective April 1, 2026. As a result, ₹55.99 crore was recognised towards additional employee benefit obligations during the quarter ended December 31, 2025 and the year ended March 31, 2026 under "Employee Benefits Expenses." On a consolidated basis, the Group recognised ₹55.99 crore during the quarter ended December 31, 2025 and Rs. 56.08 crore during the year ended March 31, 2026 under the same head. The company continues to monitor the finalisation of Central and State Rules and related clarifications.

On the credit front, Shree Cement holds the highest ratings from both CRISIL Ratings Limited (CRISIL AAA; Stable for long term, CRISIL A1+ for short term) and CARE Ratings Limited (CARE AAA; Stable for long term, CARE A1+ for short term). Outstanding qualified borrowings stood at Rs. 726.60 crore at the start of the financial year and Rs. 728.88 crore at the end of the year, with no incremental qualified borrowings or debt securities issued during FY 2025-26.

Cement Market Outlook

India's macroeconomic environment remains resilient, supported by steady domestic demand and continued policy focus on infrastructure-led growth. The Union Budget 2026-27 has reinforced this momentum through a sustained thrust on public capital expenditure, with investments in roads, railways, and urban infrastructure expected to drive construction activity and cement demand. Favourable employment conditions, stable inflation, and supportive fiscal and GST rationalisation measures further strengthen sector fundamentals. However, the geo-political conflict in West Asia and forecast of moderate monsoon conditions may act as headwinds and impact growth momentum in the short term.