Standalone net profit fell 29.2% year-on-year to ₹438 crore, missing the CNBC-TV18 poll estimate of ₹499 crore.
Revenue rose 13.6% to ₹5,622.7 crore from ₹4,948 crore a year earlier, marginally beating the Street estimate of ₹5,597 crore.
The results suggest that while demand remained healthy, higher costs eroded profitability and disappointed investors.
Margins squeezed by higher fuel costs
EBITDA declined 12.6% to ₹1,074.4 crore from ₹1,229.1 crore, below the CNBC-TV18 estimate of ₹1,175 crore.
EBITDA margin contracted sharply to 19.1% from 24.8% a year ago, missing the Street expectation of 21%.
The company said higher fuel and raw material costs, arising from the ongoing West Asia crisis, offset the benefits of higher sales volumes.
Read more: Shree Cement aims to outpace industry in FY27, sticks to organic growth
For cement manufacturers, fuel is one of the biggest input costs. Higher prices of coal, petcoke and other energy inputs can significantly reduce profitability even when sales volumes remain strong.
Demand remains robust
Despite the earnings miss, operational performance remained healthy.
Cement sales volume increased 17% year-on-year to 10.23 million tonnes, while total sales volume, including clinker, rose 17.2% to 10.49 million tonnes.
Managing Director Neeraj Akhoury said the quarter was marked by healthy demand, strong volume growth and continued progress in the company’s premiumisation strategy.
He added that growth was also supported by the expanding contribution from the Ready-Mix Concrete (RMC) business.
The strong volume growth suggests Shree Cement continues to gain market share even as India’s cement demand remains supported by infrastructure and housing activity.
Premium products gain share
Shree Cement continued to push premium products, which accounted for 23.3% of trade volumes, up from 17.7% a year ago.
The company’s Thermal Substitution Rate (TSR) improved to 5.1% from 1.9%.
A higher TSR means the company is replacing a larger portion of conventional fossil fuels with alternative fuels such as industrial or municipal waste, helping lower energy costs and reduce carbon emissions over time.
Its Ready-Mix Concrete (RMC) business also posted strong growth, with volumes surging 156% year-on-year to 2.36 lakh cubic metres.
During the quarter, the company commissioned eight new RMC plants, taking its network to 33 plants across 17 cities.
Expansion plans remain on track
Akhoury said the company remains focused on improving energy efficiency, increasing the use of green power, strengthening digital initiatives and expanding market share.
Shree Cement also said work on its proposed greenfield integrated cement plant in Meghalaya is progressing as planned.
The company has secured the required approvals and placed orders for major equipment, with commissioning targeted for the March 2028 quarter.
It added that it continues to evaluate additional expansion opportunities to meet its long-term growth ambitions.
While near-term profitability remains under pressure from higher input costs, the company’s aggressive capacity expansion and premiumisation strategy reflect its confidence in India’s long-term cement demand outlook.
Following the results, the stock recovered some of its intraday losses and was trading at ₹26,130, down 1.23% in afternoon trade. Shares of Shree Cement have declined more than 15% over the past year.
