Shree Cement reports demise of Senior Advisor Ashok Bhandari

Shree Cement Limited announced the demise of Mr. Ashok Bhandari, Senior Advisor (Finance), on August 3, 2026. The company notified the National Stock Exchange of India Limited and BSE Limited of this event, highlighting Mr. Bhandari’s role as a designated Senior Management Person. His departure marks the loss of a key financial advisor who guided the organization through complex fiscal landscapes.

The disclosure was filed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also references SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, which mandates specific reporting protocols for changes in senior management. S.S. Khandelwal, Company Secretary, signed the communication on behalf of the board.

Mr. Bhandari served as a leading authority in banking and finance during his tenure. Management noted his vast financial expertise and valuable counsel as instrumental to the company’s strategic direction. The company extended its deepest condolences to his family and loved ones.

Regulatory Disclosures

The filing includes Annexure A, which details the particulars required under the listing regulations. The document confirms the reason for the change and the date of cessation.

Particulars	Details
Reason for change	Demise of Mr. Ashok Bhandari, Senior Advisor (Finance)
Date of cessation	August 3, 2026
Brief Profile	Not Applicable
Director Relationships	Not Applicable

Impact on Governance

As a designated Senior Management Person, Mr. Bhandari’s role was integral to the company’s financial oversight. His passing necessitates internal review of advisory structures, though no immediate replacement was named in the filing. The disclosure ensures transparency for investors regarding changes in key personnel responsible for financial strategy.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.90%	-1.68%	-2.33%	-4.83%	-14.92%	-8.37%

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. The divergence between strong top-line growth and declining profitability highlights the immediate impact of external cost shocks on Shree Cement’s margins.

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.