Shree Cement delivered robust financial performance in Q3 with consolidated profit after tax (PAT) surging 38% year-on-year to ₹268 crore. According to reports from The Economic Times, the cement major's consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose less than 2% to ₹1,092.83 crore. The company faced operational disruptions during the quarter, with sales volumes adversely impacted due to loss of production on account of operations disruption at Baloda Bazar, Chhattisgarh. Despite these challenges, the company maintained steady performance in a benign demand environment.
The company is targeting a strong rebound in cement volumes during Q4FY26, with management setting sales volume targets of 9-9.5 million tonnes for the January-March quarter. As reported by The Hindu BusinessLine, this optimistic outlook is supported by the Centre's push to utilise infrastructure allocations by March 31, which is likely to boost demand. While pricing remained a focus in earlier parts of the year, the company is now prioritizing ramping up capacity utilisation as volumes improve, with the management expressing confidence in the demand recovery trajectory.
The company's premium product strategy continued to gain traction with sales of premium products rising to 22% of total trade sale volume from 15% in the corresponding previous quarter. As reported by The Economic Times, this strategic focus on higher-value products contributed to the overall revenue performance despite volume pressures. The company's annual production capacity stands at 65.8 million tonnes, providing a strong foundation for future growth initiatives.
Shree Cements outlined an aggressive expansion plan for its ready-mix concrete (RMC) business, targeting to scale up its RMC footprint to 45 plants from the current 19 units over the next six to eight months. According to The Hindu BusinessLine, this expansion is part of a broader strategy to move up the construction value chain, with around 45% of the cement consumed at these plants sourced internally, supporting higher utilisation levels. The company has earmarked baseline capital expenditure of ₹500 crore for the next financial year, primarily towards RMC expansion and infrastructure projects.
Shree Cement's total cement capacity is expected to reach 72 million tonnes by March 2026, with the company maintaining its long-term capacity target of 80 million tonnes. As reported by The Hindu BusinessLine, the company remains debt-free with cash reserves of around ₹6,000 crore and expects total dividend payout for the current fiscal may be higher than the previous year. The company continues its expansion plans with work on its 3 million tonnes integrated project at Kodla in Karnataka nearly complete, which is likely to be commissioned within the current quarter.
Shree Cement shares closed at ₹27,346.35 apiece on the BSE, up 0.5% following the earnings announcement, as reported by The Economic Times. The company expressed confidence in the market outlook, stating that India's economic outlook remains resilient and the union budget 2026-27 has further strengthened growth prospects by raising public capital expenditure to ₹12.2 lakh crore. The company expects this infrastructure focus to boost construction and cement demand, supporting its long-term growth strategy and strong financial position.
