Synopsis: India’s third-largest cement company, Shree Cement, by capacity, has outlined its bold plans for the future. This includes a volume growth of 4-5%, a steady revenue inflow and more.
The shares of one of India’s leading cement companies are in focus after it announced plans to achieve a volume growth of 4-5 percent, a revenue growth of 9 percent, and an EBITDA per tonne of around Rs 1,350-1,400 in FY2026.
With a market capitalisation of Rs 1,10,606 crore, the shares of Shree Cement Ltd are currently trading at Rs 30,655 per share, down by 5.7 percent from its 52-week high of Rs 32,508.20 per share. Over the past five years, the stock has delivered a positive return of only 39 percent.
Shree Cements is looking ahead with a positive outlook for FY26, forecasting volume growth of 4–5 percent while maintaining its revenue growth target at 9 percent. The company anticipates its EBITDA per tonne around Rs 1,350-1,400 for the fiscal year, showcasing solid operational efficiency.
On the expansion side, Shree Cements is keen on potentially acquiring Deccan Cement and JP Cement, but they’ve made it clear that any deal would only happen if the valuation is right. They’re also feeling optimistic about their operations in the UAE, confident that the strong demand for their products will help maintain their current performance in the region.
Also, it’s UAE business, which is performing solidly as of now, Union Cement Company (UCC) has recently announced its plan of increasing its cement capacity by 3 MTPA with an investment of AED 110 million (or Rs 263 crore).
Shree Cement currently has a production capacity of 62.80 MTPA. With ongoing expansions in Rajasthan, Kodla, and Karnataka, this capacity is set to rise to 68.8 MTPA. The company has set an ambitious target to further scale up and reach 80 MTPA by FY28.
Financial Highlights
Shree Cement reported a revenue of Rs 5,281 crore in Q1 FY26, up by 3 percent from its Q1 FY25 revenue of Rs 5,124 crore. Coming to its profitability, the company reported a net profit growth of 132 percent to Rs 644 crore in Q1 FY26 from Rs 278 crore in Q1 FY25.
The stock delivered a poor ROE and ROCE of 5.29 percent and 6.71 percent respectively, and is currently trading at a high P/E of 74x as compared to its industry average of 51.54x.
Shree Cement is a prominent cement manufacturer in India, with large-scale operations and energy-efficient processes. It manufactures OPC, PPC, PSC, and composite cements branded as Bangur. Apart from cement, the company also produces ready-mix concrete and aerated autoclaved concrete (AAC) blocks.
Written by Satyajeet Mukherjee
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