Shree Cement Limited held its Q3FY26 earnings conference call on February 6, 2026, where senior management discussed the company's strategic focus on pricing over volumes and outlined expansion plans for its ready-mix concrete (RMC) business.

Strategic Pricing Focus Yields Results

Senior Advisor Ashok Bhandari emphasized the company's deliberate strategy of prioritizing value over volumes since October 2024. The approach has successfully narrowed the pricing gap with industry leader UltraTech from approximately ₹30 per bag to ₹15 per bag. This strategic shift required sacrificing volumes to achieve better price realization and margin improvement.

RMC Business Expansion Plans

The company is aggressively expanding its RMC operations, currently operating 19 commercial plants with plans to increase to 45 plants within 6-8 months by September 2026. The RMC segment generated ₹71 crores in revenue during Q3FY26, with 45% captive cement consumption. Management highlighted that this expansion will provide better geographical reach, logistical cost optimization, and improved capacity utilization.

Operational Performance and Cost Management

Shree Cement maintained its position as the industry's lowest-cost fuel procurer at 1.56 per kilocalorie. The company's renewable energy portfolio reached 61%, contributing to cost optimization. The power capacity breakdown includes 1,137 megawatts total capacity, with 634 megawatts from green sources including waste heat recovery (265 MW), solar (314 MW), and wind (56 MW).

Capital Expenditure and Future Plans

For FY26, the company expects to complete ₹2,000 crores in capital expenditure, having already spent ₹1,500 crores. The upcoming Kodla plant is scheduled for commissioning by March 2026, which will add waste heat recovery systems to further enhance the renewable energy portfolio. For FY27, management provided guidance of ₹500 crores capex, primarily for RMC plants (₹200 crores) and railway sidings (₹200 crores).

Market Outlook and Volume Expectations

Management expressed confidence in Q4FY26 performance, projecting 9-9.5 million tons in sales volume. The company expects industry demand growth of 7.5-8% for FY27, supported by the RBI's projected 7.4% GDP growth rate. Bhandari noted that cement typically grows at 1x to 1.1x of national GDP, providing a positive outlook for the sector.

Financial Position and Dividend Prospects

With ₹6,000 crores in free cash and zero net debt, Shree Cement maintains a strong financial position. Management indicated expectations for improved dividend payouts for FY26 compared to FY25, though specific amounts remain subject to board approval. The company's capacity is expected to reach 72 million tons by March 2026, with the long-term target of 80 million tons by FY29 subject to demand conditions.

Shree Cement Ltd. executed a significant block trade on the National Stock Exchange (NSE), marking notable institutional activity in the cement sector. The transaction represents one of the substantial trades recorded for the company on the exchange.

Block Trade Details

The NSE block trade involved key parameters that highlight the scale of the transaction:

Market Implications

Block trades typically represent large-volume transactions executed outside the regular market to minimize price impact. These trades often involve institutional investors, mutual funds, or other large stakeholders making strategic portfolio adjustments. The execution at Rs. 27,315.00 per share indicates the prevailing market valuation for Shree Cement shares during the transaction period.

Transaction Significance

The Rs. 41.57 crore transaction value underscores the substantial nature of this block trade. Such significant transactions in the cement sector often attract market attention due to their potential implications for stock liquidity and institutional interest. The involvement of approximately 15,217 shares at the specified price point reflects the scale of institutional activity in Shree Cement's stock.