According to reports from CNBC TV18, Shree Cement Chairman HM Bangur announced the company will not proceed with a buyback but plans to raise its dividend slightly in the upcoming quarter. Bangur expressed optimism about the fourth quarter results, stating they should be encouraging for investors. The company currently has a market capitalisation of ₹96,443.84 crore and its shares have declined more than 4% over the past one year. Recent developments show that Star Cement has announced a second interim dividend of ₹1 per equity share for FY 2025-26, subject to shareholder approval, with the record date fixed for February 12, 2026 and payment scheduled on or before March 8, 2026.
As reported by CNBC TV18, Bangur indicated that Shree Cement's volume growth could touch 10% in FY27, higher than the industry average. However, he noted this goal is subject to the market growing at 8%. The company estimates 36.5-37 million tonne volume for the current financial year, with 5-8% volume growth and ₹10-₹15 price increase expected in Q4. Bangur emphasized that the company has successfully moved past its earlier strategy of prioritising value over volumes and has narrowed pricing gaps with peers.
According to the interview with CNBC TV18, Bangur revealed that North Indian operations generate ₹500 higher EBITDA per tonne compared to South operations. He acknowledged that Shree Cement's dominance in North India will face challenges from new competitors, but noted that 4-5 million tonne additional production will not significantly impact the market given 7 million tonne annual demand growth. The company has successfully bridged the pricing gap with UltraTech Cement from ₹30 to ₹15.
As reported by CNBC TV18, Shree Cement recently reported strong Q3 FY26 results with net profit rising 37.9% year-on-year to ₹266.7 crore, compared with ₹193.4 crore in the same period last year. The company expects to achieve ₹1,200-₹1,250 per tonne EBITDA in Q4, representing ₹150-₹200 price improvement driven by operating leverage and pricing benefits. Bangur expressed confidence that the company will deliver higher growth than average market growth in FY27.
