Shares of Shree Cement rose as much as 2.3% on Thursday to Rs 31,350 on the BSE after the cement manufacturer reported record quarterly sales volume and reiterated a positive demand outlook for FY26, helping offset concerns around a weaker bottom line in the March quarter.
The country’s third-largest cement group by capacity posted a 14.9% year-on-year decline in consolidated net profit to Rs 575 crore in the March quarter of FY25, compared to Rs 675.75 crore a year earlier. However, revenue from operations edged higher to Rs 5,532.02 crore from Rs 5,401.01 crore, supported by higher sales volumes and improved premium product contribution.
The board has recommended a final dividend of Rs 60 per share, on top of the Rs 50 interim dividend declared earlier in January.
Volume milestone, premium push
Shree Cement said its total sales volume for the March quarter stood at 9.84 million tonnes, the highest ever quarterly figure achieved by the company, surpassing the 9.53 million tonnes sold in the same period last year. The share of premium products in trade sales also rose to 15.6%, reflecting the company’s continued focus on margin-accretive segments.
Total income, including other income, was up at Rs 5,689.95 crore in the quarter versus Rs 5,550.64 crore a year earlier, while total expenses rose 3.9% to Rs 4,932.28 crore.
For the full year FY25, consolidated net profit more than halved to Rs 1,123.8 crore from Rs 2,396.16 crore, while annual revenue from operations declined to Rs 19,282.83 crore from Rs 20,403.8 crore.
Capacity expansion and future outlook
In April, the company commissioned two new grinding units—one in Etah, Uttar Pradesh (3 MTPA) and another in Baloda Bazar, Chhattisgarh (3.40 MTPA). With these additions, Shree Cement’s installed cement production capacity now stands at 62.8 MTPA in India.
Looking ahead, the company is targeting further growth, with integrated cement units in Jaitaran, Rajasthan, and Kodla, Karnataka, scheduled for commissioning by the end of Q1 and Q2 of FY26, respectively. However, the company has revised plans for the Jaitaran site, choosing to proceed with only one of the originally planned two mills for now.
Shree Cement said it expects the cement industry to grow at 6.5–7.5% in FY26, driven by infrastructure spending, rural recovery and continued strength in real estate. “We remain optimistic about improved cement demand and will continue to drive our strategic initiatives of premiumization, geo-mix and cost optimisation,” said Managing Director Neeraj Akhoury.
Stock performance and technical view
Shares of Shree Cement ended Thursday’s session at Rs 30,631.90, up 1.43% on the BSE. The stock has gained 21.3% in the past year and risen 31% in the last six months. It has advanced nearly 5% in the past month and almost 7% over the last week.
Also read | Shree Cement Q4 Results: Profit falls 15% to Rs 575 crore
From a technical perspective, the stock is trading above all eight key simple moving averages, including the 100-day, 150-day and 200-day averages. Its 14-day Relative Strength Index (RSI) stands at 59.2, well below the overbought threshold of 70, indicating room for further upside, though some near-term consolidation cannot be ruled out.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The country’s third-largest cement group by capacity posted a 14.9% year-on-year decline in consolidated net profit to Rs 575 crore in the March quarter of FY25, compared to Rs 675.75 crore a year earlier. However, revenue from operations edged higher to Rs 5,532.02 crore from Rs 5,401.01 crore, supported by higher sales volumes and improved premium product contribution.
The board has recommended a final dividend of Rs 60 per share, on top of the Rs 50 interim dividend declared earlier in January.
Volume milestone, premium push
Shree Cement said its total sales volume for the March quarter stood at 9.84 million tonnes, the highest ever quarterly figure achieved by the company, surpassing the 9.53 million tonnes sold in the same period last year. The share of premium products in trade sales also rose to 15.6%, reflecting the company’s continued focus on margin-accretive segments.
Total income, including other income, was up at Rs 5,689.95 crore in the quarter versus Rs 5,550.64 crore a year earlier, while total expenses rose 3.9% to Rs 4,932.28 crore.
For the full year FY25, consolidated net profit more than halved to Rs 1,123.8 crore from Rs 2,396.16 crore, while annual revenue from operations declined to Rs 19,282.83 crore from Rs 20,403.8 crore.
Capacity expansion and future outlook
In April, the company commissioned two new grinding units—one in Etah, Uttar Pradesh (3 MTPA) and another in Baloda Bazar, Chhattisgarh (3.40 MTPA). With these additions, Shree Cement’s installed cement production capacity now stands at 62.8 MTPA in India.
Looking ahead, the company is targeting further growth, with integrated cement units in Jaitaran, Rajasthan, and Kodla, Karnataka, scheduled for commissioning by the end of Q1 and Q2 of FY26, respectively. However, the company has revised plans for the Jaitaran site, choosing to proceed with only one of the originally planned two mills for now.
Shree Cement said it expects the cement industry to grow at 6.5–7.5% in FY26, driven by infrastructure spending, rural recovery and continued strength in real estate. “We remain optimistic about improved cement demand and will continue to drive our strategic initiatives of premiumization, geo-mix and cost optimisation,” said Managing Director Neeraj Akhoury.
Stock performance and technical view
Shares of Shree Cement ended Thursday’s session at Rs 30,631.90, up 1.43% on the BSE. The stock has gained 21.3% in the past year and risen 31% in the last six months. It has advanced nearly 5% in the past month and almost 7% over the last week.
Also read | Shree Cement Q4 Results: Profit falls 15% to Rs 575 crore
From a technical perspective, the stock is trading above all eight key simple moving averages, including the 100-day, 150-day and 200-day averages. Its 14-day Relative Strength Index (RSI) stands at 59.2, well below the overbought threshold of 70, indicating room for further upside, though some near-term consolidation cannot be ruled out.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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