Shree Cement Q2 Profit Soars Nearly Threefold to ₹277 Crore, Revenue Up 15.5%

Shree Cement Limited announced its financial results for the second quarter, showcasing robust growth. The company's net profit surged to ₹277 crore, a substantial increase from ₹93 crore in the same period last year, although it fell short of analyst estimates. Revenue for the quarter reached ₹4,303 crore, marking a 15.5% year-on-year rise, slightly exceeding poll estimates. This growth was attributed to higher sales volumes, a strategic shift towards premium product offerings, and an overall value-over-volume approach.

EBITDA saw a significant jump of 43.5% to ₹851.8 crore, compared to ₹593 crore a year ago, indicating improved operational performance and cost management, though it missed market expectations. The operating margin improved to 19.8% from 15.9% year-on-year.

On a standalone basis, cement sales volume grew by 6.8%. The share of premium products in total trade volume rose to 21.1% from 14.9% in the prior year's quarter.

Shree Cement's operations in the United Arab Emirates also performed strongly, with revenue increasing by 50% year-on-year to AED 231.80 million and operational EBITDA soaring by 158%. Total sales volume in the UAE climbed 34%.

The company is actively expanding its production capacity, commissioning a 3.65 MTPA clinkerisation line at Jaitaran, Rajasthan, with a cement mill expected soon. Work on another 3.0 MTPA project in Karnataka is also nearing completion. Shree Cement aims to exceed 80 MTPA total capacity.

Furthermore, the company continues to emphasize sustainability, with green electricity comprising 63.15% of its total consumption in H1 FY26. A new 20 MW solar power plant was commissioned, increasing its total green power generation capacity in India to 612.5 MW.

Shares of Shree Cement Limited closed down 0.23% at ₹28,534.50 on the BSE.

Impact This news is significant for investors as it indicates strong operational performance, strategic execution, and expansion plans for a major player in the Indian cement industry. The profit growth, revenue increase, and capacity expansion suggest a positive outlook for the company and the sector. The strong performance in the UAE also adds diversification benefits. The stock price movement shows a cautious market reaction, possibly due to profit-taking or slight miss on estimates, but the underlying business metrics are robust. Impact Rating: 7/10

Difficult Terms Explained: Net Profit: The profit remaining after all expenses and taxes have been deducted from the total revenue. Revenue: The total income generated from the sale of goods or services related to the company's primary operations. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. Operating Margin: The percentage of revenue that remains after deducting the cost of goods sold and operating expenses. It reflects operational efficiency. Premiumisation: A strategy where a company focuses on selling higher-value or more advanced versions of its products at higher prices. Clinkerisation Line: A part of a cement plant where clinker, the intermediate product in cement manufacturing, is produced. MTPA: Million Tonnes Per Annum. A unit of measurement for production capacity, typically used for large-scale industrial operations like cement and mining. Standalone Basis: Refers to the financial results of a single legal entity (the parent company) without including the financial results of its subsidiaries. Wholly Owned Subsidiary: A company that is completely owned by another company, typically the parent company. Green Electricity: Electricity generated from renewable sources such as solar, wind, or hydro power, which have minimal environmental impact.