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.

Shree Cement Limited , a major player in the Indian cement industry, has significantly expanded its manufacturing capabilities with the commissioning of a new clinkerisation unit in Rajasthan. The company officially announced the completion of this strategic expansion on September 30, 2025.

Expansion Details

The newly commissioned clinkerisation unit, located at Shree Cement's Integrated Cement Plant in Tehsil Jaitaran, District Beawar, Rajasthan, boasts a substantial capacity of 3.65 Million Tonnes Per Annum (MTPA). This addition marks a notable increase in the company's cement production capabilities, reinforcing its position in the competitive cement market.

Official Disclosure

In compliance with regulatory requirements, Shree Cement Limited filed a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Company Secretary, S.S. Khandelwal, officially communicated the commissioning to both the National Stock Exchange of India Limited and BSE Limited.

Strategic Implications

The commissioning of this new clinkerisation unit is a significant step in Shree Cement's growth strategy. By enhancing its production capacity, the company is well-positioned to meet the increasing demand for cement in India, particularly in the northern and western regions of the country.

Environmental Considerations

While the company celebrates this expansion, it's worth noting that Shree Cement faces ongoing challenges in environmental compliance. In a separate disclosure on the same day, the company reported that its wholly-owned subsidiary, Shree Cement East Private Limited, received an order from the West Bengal Pollution Control Board. The order imposed a penalty of Rs. 10.00 lakh for alleged violations of environmental norms, including issues related to:

• Fugitive emissions
• Rainwater harvesting arrangements
• Wind-breaking walls

Looking Ahead

As Shree Cement ramps up production at its new clinkerisation unit, the company will likely focus on balancing its growth objectives with environmental responsibilities. The successful integration of this new unit into its operations could play a crucial role in strengthening Shree Cement's market position in the coming years.

The cement industry continues to be a vital sector in India's infrastructure development, and expansions like this one by Shree Cement are indicative of the ongoing demand and growth potential in the market.