Shree Cement Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Shree Cement Ltd filed with BSE on 11 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Shree Cement reported Q4 FY26 domestic cement sales volume growth of 25% sequentially and 11% year-on-year, with operating EBITDA rising 34% to Rs 1,212 crores and EBITDA per ton at Rs 1,125. For the full year, sales volume including Shree Cement East rose 2.2% to 36.4 million tons, realizations increased 3.6% to Rs 4,732 per ton, and the Board recommended a final dividend of Rs 70 per share in addition to the Rs 80 interim dividend already paid. Management discussed capacity expansion including the newly commissioned Kodla integrated project, an ongoing UAE cement mill expansion, a new Meghalaya project, and cost pressures from fuel and packaging arising from the Middle East conflict.
Numbers mentioned
Domestic cement sales volume: 10.56 million tons (Q4 FY26)
p. 3
“In March '26 quarter on a sequential basis, domestic cement sales volume increased by about 25% from 8.48 million tons in December '25 to 10.56 million tons in March '26, while year-on-year growth was at 11%.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Total volume including clinker sales: 10.77 million tons (Q4 FY26)
p. 3
“Total volume, including clinker sales also jumped by about 9.4% from 9.84 million tons to 10.77 million tons, while increasing by 23.2% on a quarter-on-quarter basis.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Realization: INR 4,725 per ton (Q4 FY26)
p. 3
“Realizations were at INR 4,725 as against INR 4,652 in December '25, registering an increase of 1.6% during the quarter.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Operating EBITDA: INR 1,212 crores (Q4 FY26)
p. 3
“Operating EBITDA also increased by 34% from INR 902 crores to INR 1,212 crores.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
EBITDA per ton: INR 1,125 (Q4 FY26)
p. 3
“EBITDA per ton increased from INR 1,032 to INR 1,125 in March '26.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Capacity utilization: 66% (Q4 FY26)
p. 3
“Capacity utilization during the quarter stood at 66% as compared to 56% during December 2025.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Full year sales volume: 36.4 million tons (FY26)
p. 3
“For the full year, sales volume including Shree Cement East, increased by 2.2% from 35.6 million tons to 36.4 million tons.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Full year realization: INR4,732 per ton (FY26)
p. 3
“Our strategy, which we took for the full year helped in increasing our realization from INR4,569 per ton last year to INR4,732 per ton in 2025-'26, registering an increase of 3.6%.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Total operating EBITDA: INR4,222 crores (FY26)
p. 3
“Total operating EBITDA increased by 11% from INR3,814 crores to INR4,222 crores, excluding onetime impact of INR80 crores.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
EBITDA per ton: INR1,161 (FY26)
p. 3
“EBITDA per ton stood at INR1,161 as against INR1,071 last year.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Union Cement sales volume: 45.65 lakh tons (FY26)
p. 3
“Sales volume were up by 18% from INR38.61 lakh tons to INR45.65 lakh tons.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Union Cement revenue: AED 870 million (FY26)
p. 3
“Revenue was up by 39% during the year from AED 624 million to AED 870 million.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Installed cement production capacity in India: 69.3 million tons (as of Q4 FY26)
p. 4
“With this, the company's installed cement production capacity in India, including its wholly owned subsidiaries, increased to 69.3 million tons, strengthening its position as India's third largest cement group.”
Neeraj Akhoury, page 4 of the filed PDF · View the filing
Green electricity share: 61% (Q4 FY26)
p. 4
“The company's share of green electricity in total electricity consumption stood at 61% in Q4 '26, up from 59% on Q4 '25, including its wholly owned subsidiaries in India, which is one of the highest in the India and most probably global cement industry.”
Neeraj Akhoury, page 4 of the filed PDF · View the filing
Total dividend for the year: INR150 per share (FY26)
p. 5
“Total dividend for the year stands at INR150 per share, representing a 36% increase over the INR110 per share dividend paid in '24-'25.”
Neeraj Akhoury, page 5 of the filed PDF · View the filing
Net cash: Rs 6400 crores (as of March 2026)
p. 6
“We are 6400 Cr Net cash and a borrowing of approx 1500 Cr, Gross 7900 Cr.”
Ashok Bhandari, page 6 of the filed PDF · View the filing
North region utilization: 70% (Q4 FY26)
p. 8
“Yes. For this quarter, for North the utilization is 70%. For East, it is 60%. For South, it is 61%.”
Subhash Jajoo, page 8 of the filed PDF · View the filing
Clinker factor: 64.8% (Q4 FY26)
p. 11
“Yes. For the current quarter, the clinker factor is 64.8% against 63.9% in December '25 and 64% in March '25.”
K.K. Jain, page 11 of the filed PDF · View the filing
Kcal landed fuel cost: INR1.60 per kilocalorie (Q4 FY26)
p. 13
“INR1.60 per kilocalorie landed at our plant.”
Ashok Bhandari, page 13 of the filed PDF · View the filing
Fuel mix - pet coke: 54% (Q4 FY26)
p. 13
“For Q4, it was pet coke was 54%, coal was 32% and alternative fuel was 14%.”
Subhash Jajoo, page 13 of the filed PDF · View the filing
RMC revenue: INR246 crores (FY26)
p. 14
“It is INR246 crores.”
K. K. Jain, page 14 of the filed PDF · View the filing
Premium products share: 22% (FY26)
p. 17
“As you have seen, we have now crossed 22% up by about 40% from 15% to 22%.”
Neeraj Akhoury, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex for FY27 — approximately INR1,500 crores · FY27
stated firmly by Ashok Bhandari
p. 6
“However, the total capex estimation for the year '26-'27 is approximately INR1,500 crores and it should take its own course.”
Ashok Bhandari, page 6 of the filed PDF · View the filing
RMC plant count — 50 to 55 RMC plants · FY27
stated firmly by Ashok Bhandari
p. 6
“We expect to close the year with about 50 to 55 RMC plants, railway sidings and preliminary work on Meghalaya cement.”
Ashok Bhandari, page 6 of the filed PDF · View the filing
Total capacity target — 80 million tons · by 2029
stated as an aspiration by Ashok Bhandari
p. 6
“We intend to reach 80 million tons by '29, but let us see.”
Ashok Bhandari, page 6 of the filed PDF · View the filing
UAE cement mill capacity addition — 2.5 million tons · September '26
stated firmly by Neeraj Akhoury
p. 4
“The work on setting up a cement mill of 2.5 million tons in Union Cement, UAE is progressing well and is scheduled to be commissioned by September '26.”
Neeraj Akhoury, page 4 of the filed PDF · View the filing
Cement volume — about 40 million tons · FY27
stated conditionally by Ashok Bhandari
p. 7
“However, we expect to reach about 40 million tons in this year. '2627, we should be around 40 million tons.”
Ashok Bhandari, page 7 of the filed PDF · View the filing
Volume growth guidance — 1% over average industry growth rate
stated firmly by Ashok Bhandari
p. 7
“Basically, the guidance we have been maintaining is 1% over the average industry growth rate.”
Ashok Bhandari, page 7 of the filed PDF · View the filing
Cement demand growth rate — 7.1%-7.2% · FY27
stated conditionally by Ashok Bhandari
p. 8
“We expect this year 6.5% to be the GDP growth rate. So we should do about 7.1%-7.2% cement demand growth rate.”
Ashok Bhandari, page 8 of the filed PDF · View the filing
Company volume growth vs industry — 8% to 8.5%
stated as an aspiration by Ashok Bhandari
p. 8
“We should grow at about 8% to 8.5%, but you can never say.”
Ashok Bhandari, page 8 of the filed PDF · View the filing
Depreciation — INR1,600 crores to INR1,700 crores · FY27
stated firmly by Ashok Bhandari
p. 7
“Yes, we are sticking to that.”
Ashok Bhandari, page 7 of the filed PDF · View the filing
Kcal fuel cost increase — 10% to 12% · Q1 FY27
stated conditionally by Ashok Bhandari
p. 14
“At the moment, we are saying that our per kilocalorie cost in Q4 was INR1.60, which is likely to go up by 10% to 12% in Q1.”
Ashok Bhandari, page 14 of the filed PDF · View the filing
Packing cost increase — INR100 per ton
stated conditionally by Ashok Bhandari
p. 14
“So the indication as on date, you can take INR100 per ton of packing cost rise.”
Ashok Bhandari, page 14 of the filed PDF · View the filing
Cumulative cost increase Q1 vs Q4 — INR150 to INR200 per ton · June quarter
stated conditionally by K. K. Jain
p. 15
“I would like to clarify one thing that there will be, say, cost impact of INR150 to INR200 in the second quarter as compared to the March '26.”
K. K. Jain, page 15 of the filed PDF · View the filing
Lead distance — 440 kilometers or lower
stated as an aspiration by Ashok Bhandari
p. 16
“Yes not only 440 and even lower.”
Ashok Bhandari, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management outlined three capex focus areas for FY27 with total capex of about Rs 1,500 crores, and said cash would be used to reward shareholders or front-end capex if conditions improve.
Answered by Ashok Bhandari
Asked by Rajesh Ravi: What is next in terms of capex and use of the large cash surplus?
p. 6
“However, the total capex estimation for the year '26-'27 is approximately INR1,500 crores and it should take its own course.”
Ashok Bhandari, page 6 of the filed PDF · View the filing
Management attributed the increase to a rise in lead distance and said they are working to bring it down.
Answered by Ashok Bhandari
Asked by Harsh Mittal: Why did freight cost increase in Q4?
p. 7
“What has happened is that our lead distance has increased by about 12 kilometres over last quarter.”
Ashok Bhandari, page 7 of the filed PDF · View the filing
Management said they focus on landed cost per kilocalorie rather than a specific fuel, noting the kcal cost would rise about 10% this quarter.
Answered by Ashok Bhandari
Asked by Amit Murarka: How is the company managing fuel cost inflation from the Middle East crisis, including coal vs pet coke mix?
p. 8
“Indeed, yes, the fuel cost which is standing at about INR1.60 per kilocalorie as on date will move up maybe by 10% or something for this quarter.”
Ashok Bhandari, page 8 of the filed PDF · View the filing
Management linked cement demand to GDP growth, expecting industry growth of about 7.1-7.2% and company growth of 8-8.5%.
Answered by Ashok Bhandari
Asked by Siddharth Mehrotra: What are demand expectations for the next 12 months given competitors are also slowing expansion?
p. 8
“If India needs to grow at 7%, steel and cement should grow at least in tandem with that, if not more.”
Ashok Bhandari, page 8 of the filed PDF · View the filing
Management said it is too early to comment and noted they have slowed capex guidance to Rs 1,500 crores for the year.
Answered by Ashok Bhandari
Asked by Pinakin: Given current utilization levels, will the 80 million ton target by FY29 be pushed out?
p. 9
“I can't say it's too early to comment. We have slowed down. I have given a guidance of INR 1,500 crores only for capex in this year.”
Ashok Bhandari, page 9 of the filed PDF · View the filing
Management said mines are allocated rather than auctioned and no formal incentive confirmation has been received yet, though the project is viable without incentives.
Answered by Neeraj Akhoury
Asked by Ritesh Shah: What is the status of Meghalaya limestone sourcing and government incentives?
p. 10
“No, we have not yet received any confirmed paper document from the government of Meghalaya on incentives to be given.”
Neeraj Akhoury, page 10 of the filed PDF · View the filing
Management said the gap reduction of INR15-20 has occurred across regions and they intend to compress it further depending on demand.
Answered by Ashok Bhandari
Asked by Prateek Kumar: Is the pricing gap closure with the largest peer similar across regions and is it stabilized?
p. 13
“INR15 to INR20 is the delta decrease across region and we intend to compress it further.”
Ashok Bhandari, page 13 of the filed PDF · View the filing
Management explained costs are charged on weighted average cost basis, so the major impact would show in the third month of holding, with incremental effects each month.
Answered by Ashok Bhandari
Asked by Pulkit Patni: Given fuel inventory levels, when will higher fuel costs actually hit the P&L?
p. 14
“The charge is on weighted average cost, not on procurement cost or historical cost.”
Ashok Bhandari, page 14 of the filed PDF · View the filing
Management said demand was fine until mid-April but has slowed slightly since, while cautioning it is still early in the quarter.
Answered by Ashok Bhandari
Asked by Rajesh Ravi: Has demand disappointed in April and May so far given inflation and disruptions?
p. 16
“Till 15th April everything was all right. After that little slowdown has come.”
Ashok Bhandari, page 16 of the filed PDF · View the filing
Management clarified that they sacrificed volume earlier to reach a price point, and once achieved, focused on selling as much as possible while keeping profitability as the primary goal.
Answered by Ashok Bhandari
Asked by Navin Sahadeo: Is Shree Cement now chasing volume over value given the North market share commentary?
p. 17
“No, I said that we sacrificed volumes to reach a price point. And once we reach that price point and it became acceptable to all, we sold as much as we could sell.”
Ashok Bhandari, page 17 of the filed PDF · View the filing
Risks flagged
Middle East geopolitical conflict affecting demand and fuel supply
p. 5
“However, the geopolitical conflict in Middle East and forecast of moderate monsoon conditions may act as headwinds for the sector and may impact its growth momentum in the short term.”
Neeraj Akhoury, page 5 of the filed PDF · View the filing
Moderate monsoon forecast impacting sector growth momentum
p. 5
“However, the geopolitical conflict in Middle East and forecast of moderate monsoon conditions may act as headwinds for the sector and may impact its growth momentum in the short term.”
Neeraj Akhoury, page 5 of the filed PDF · View the filing
Fuel supply disruption due to Strait of Hormuz situation
p. 14
“There are no floating cargoes available and the Strait of Hormuz is playing its own spoilsport.”
Ashok Bhandari, page 14 of the filed PDF · View the filing
Rising packaging material (PVC granule) costs
p. 14
“Now PVC granules are vanishing or having a galloping price rise.”
Ashok Bhandari, page 14 of the filed PDF · View the filing
Slowdown in UAE sales due to regional tension
p. 3
“Since last 2 months due to the tension prevailing in the Middle East, sales have slowed down, but with ceasefire situation is gradually coming back to normal.”
Neeraj Akhoury, page 3 of the filed PDF · View the filing
Potential competitive pressure from new capacity in North region
p. 17
“As Mr. Bangur has said it is possible that competition pressure might rise, but in today’s date everything is in cost pressure, what cumulative effect will come how will I tell.”
Ashok Bhandari, page 17 of the filed PDF · View the filing
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