Shree Cement Limited , one of India's leading cement manufacturers, reported a significant surge in its financial performance for the second quarter. The company's net profit nearly tripled to ₹277.00 crore, up from ₹93.00 crore in the same period last year, showcasing robust growth despite falling short of analyst estimates of ₹349.00 crore.

Revenue and Operational Performance

The company's revenue from operations grew by 15.5% year-on-year to ₹4,303.00 crore, compared to ₹3,727.00 crore in the corresponding quarter of the previous year. This growth was primarily driven by higher volumes and an increased focus on premium products.

Profitability and Margins

Shree Cement's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase of 43.5% to ₹851.80 crore. The operating margin improved to 19.8% from 15.9% in the same quarter last year, indicating enhanced operational efficiency.

Premium Product Strategy

The company's strategy to focus on premium products has shown positive results. Premium products now account for 21.1% of total trade volume, a significant increase from 14.9% in the previous comparable period.

UAE Operations

Shree Cement's operations in the United Arab Emirates demonstrated strong performance, with revenue growing by 50% to AED 231.80 million.

Capacity Expansion and Sustainability Initiatives

During the quarter, Shree Cement commissioned a 3.65 MTPA clinkerisation line in Rajasthan, enhancing its production capabilities. The company also added 20 MW of solar capacity, bringing its total green power generation to 612.5 MW. Notably, green electricity now comprises 63.15% of the company's total consumption, underlining its commitment to sustainable operations.

Financial Position

As of September 30, Shree Cement's balance sheet remains robust with a net worth of ₹21,928.31 crore. The company maintains a healthy current ratio of 1.88, indicating strong liquidity.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹80.00 per equity share, payable to shareholders on the record date of November 3.

Market Response

Despite the quarterly performance, Shree Cement's shares closed down 0.23% at ₹28,534.50 on the day of the results announcement.

Shree Cement Limited , one of India's leading cement manufacturers, has reported a significant decline in its quarterly profit for the period ended September 30, 2025. The company's financial results, released on October 28, 2025, reveal a mixed performance with a sharp drop in profitability despite a modest increase in revenue.

Key Financial Highlights

Shree Cement's revenue from operations for the quarter stood at ₹4,303.20 crore, marking a 15% year-on-year increase. However, this represents a 13% decline compared to the previous quarter's revenue of ₹4,947.98 crore.

The company's net profit for Q2 FY2026 was ₹188.10 crore, a substantial 69.6% decrease from ₹618.51 crore reported in the previous quarter. This sharp decline in profitability comes despite the year-on-year revenue growth.

Operational Performance

The company's operational performance showed some positive signs:

• Total cement sales volume increased by 6.8% year-on-year.
• Sales of premium products rose to 21.1% of total trade volume, compared to 14.9% in the corresponding previous quarter.

Dividend Declaration

Shree Cement's Board of Directors has declared an interim dividend of ₹80 per equity share of ₹10 each for the Financial Year 2025-26. The dividend will be payable to shareholders holding shares on the record date of November 3, 2025, with the payment scheduled for November 14, 2025.

One-Time Charge Impacts Expenses

During the quarter, the company transferred certain power transmission assets to the Government Transmission Corporation, resulting in a one-time charge of ₹23.68 crore under 'Other Expenses'. This charge affected the operating EBITDA by approximately ₹30 per metric ton for the quarter.

Management Commentary

Mr. Neeraj Akhoury, Managing Director of Shree Cement Ltd., commented on the results: "Our Q2 results underscore the resilience of our business operations and the agility of our teams in navigating a dynamic environment. We remain steadfast in our commitment to enhancing shareholder value through disciplined execution and continuous innovation."

He added, "The recent policy measures, including GST rate rationalization supported by benign inflation levels, are expected to stimulate economic momentum. This creates a favorable backdrop for the cement industry, and we are confident in our ability to sustain strong performance and deliver consistent results in the coming quarters."

Expansion and Future Outlook

Shree Cement has recently commissioned a 3.65 MTPA clinkerisation line at its Jaitaran, Rajasthan plant. The company is also nearing completion of a 3.0 MTPA cement capacity integrated project at Kodla, Karnataka.

The company remains committed to its goal of achieving over 80 MTPA cement capacity and is exploring various opportunities to reach this target.

As the Indian economy shows signs of resilience and growth, Shree Cement appears positioned to capitalize on the expected increase in infrastructure development and housing sector growth, which may support cement demand in the near term.