Shree Cement Reports Strong Q1 FY26 Performance: Net Profit Surges 95% YoY, EBITDA Grows 34%

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Chandigarh – Shree Cement Ltd., India’s third-largest cement manufacturer by capacity, has announced its financial and operational performance for the first quarter of the fiscal year 2025–26, reporting a robust 95% year-on-year jump in net profit and a 34% increase in operating profit (EBITDA), driven by operational efficiency, cost discipline, and improved pricing.

The company’s standalone revenue from operations stood at ₹4,948 crore, up 2% from ₹4,835 crore in Q1 FY25. EBITDA surged to ₹1,229 crore from ₹916 crore in the same period last year, while Profit After Tax (PAT) nearly doubled to ₹619 crore as compared to ₹318 crore in the corresponding quarter last year. Cash profit rose 24% year-on-year to ₹1,161 crore, highlighting the company’s improved cash generation capability.

Financial Highlights – Q1 FY26 (Standalone)

Operational Highlights

• Total cement sales volume during Q1 FY26 stood at 89.5 lakh tonnes

• Premium product sales accounted for 17.7% of trade sales volume, up from 15.6% in Q4 FY25

• Improved pricing and cost efficiencies played a critical role in driving profitability

UAE Operations Gain Momentum

Shree Cement’s international subsidiary, Union Cement Company (UCC) in the UAE, continued its upward growth trajectory. The UAE business reported AED 181.19 million in revenue, up 19% YoY, while EBITDA jumped nearly fourfold, rising from AED 9.02 million in Q1 FY25 to AED 44.86 million in Q1 FY26, representing a 397% increase.

Recognizing the strong demand environment in the region, UCC has announced plans to expand cement production capacity by 3.0 MTPA with an investment of AED 110 million.

Management Commentary

Mr. Neeraj Akhoury, Managing Director of Shree Cement, expressed confidence in the company’s strategy and execution:

“We are pleased to report a strong start to the financial year 2025–26, with robust performance in the first quarter reflecting the resilience of our business model and the dedication of our teams across the organisation. Our revenue and profitability have shown healthy year-on-year growth, driven by our sustained focus on pricing, premiumisation, operational efficiencies, and disciplined cost management.”

He added:

“This quarter’s results reaffirm our strategic focus on innovation, sustainability, and customer-centricity. We continue to invest in green technologies, digital transformation, and capacity expansion to meet the evolving needs of our stakeholders. As we move forward, we remain committed to delivering long-term value while contributing meaningfully to India’s growth story.”

Capex and Capacity Expansion

Shree Cement’s expansion roadmap is firmly on track. Ongoing projects include:

• 3.0 MTPA integrated cement unit in Jaitaran, Rajasthan

• 3.0 MTPA integrated cement unit in Kodla, Karnataka

Once commissioned, these projects will take the company’s total cement production capacity to 68.8 MTPA. The company remains focused on its strategic target of achieving 80 MTPA capacity by 2028.

Sustainability & ESG Highlights

Shree Cement remains a front-runner in sustainability, making notable progress across several green initiatives during Q1 FY26:

• Green electricity accounted for 65.65% of total power consumption, one of the highest in India’s cement sector.

• The company’s green power generation capacity stood at 586 MW at the end of Q1 FY26.

• Utilized 0.15 lakh tonnes of agro waste, resulting in the conservation of fossil fuels equivalent to 51 billion kCal and avoiding 0.20 lakh tonnes of CO₂ emissions.

• Consumed 2,877 tonnes of stubble within the NCR region and 0.53 lakh tonnes of hazardous waste, reducing fossil-fuel-based heat use.

• All plants are Zero Liquid Discharge (ZLD) facilities, achieving 100% water recycling and reuse.

• Water positivity index improved to >8 times, further gains expected due to favourable monsoon conditions.

Accolades & Recognitions

• Raipur plant’s Quality Control Lab received NABL accreditation, enabling global acceptance of its testing data.

• Named “Most Sustainable Company in the Cement Sector” at Business Today India’s Most Sustainable Companies Awards 2025, presented by Union Minister Shri Bhupender Yadav.

• Honoured with the “State-Level Bhamashah Award 2025” by the Rajasthan government for contributions to community education, with the Ras unit winning for the tenth consecutive year.

Ready-Mix Concrete (RMC) Expansion

The company is aggressively expanding its presence in the Ready-Mix Concrete segment:

• From 15 RMC plants at the start of FY26, 6 new plants have been commissioned, taking the total to 21

• The goal is to reach 50 operational RMC plants by the end of the fiscal year, tapping into India’s growing urban infrastructure demand

Industry Outlook

The Indian cement industry is forecast to grow 6–7% in FY26, fueled by:

• Government-led infrastructure development and capital expenditure

• Strong rural housing demand supported by a healthy monsoon

• Urbanization and rising construction in tier-2 and tier-3 cities

• Expansion in industrial and commercial real estate

With strong demand fundamentals and improved cost structures, the sector is well-positioned for a stable and profitable growth phase.

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