Adani Green Q2 Results: Profit Soars 103% to ₹644 Crore
28 Oct 2025
Shree Cement demonstrates exceptional Q2 FY26 performance with 304% profit growth and strong operational metrics
Shree Cement Q2 FY26 Results - Official NSE Filing
Download the complete financial results and management report submitted to National Stock Exchange
Q2 FY26 Cement Sector Overview
The Q2 FY26 earnings season has highlighted Shree Cement's exceptional performance in the cement sector. The company's latest results demonstrate remarkable growth across all financial metrics, backed by strong demand from infrastructure and housing sectors, operational efficiency improvements, and strategic market expansion. This analysis decodes Shree Cement's quarterly performance and strategic direction in India's growing construction materials market.
Cement Sector Leader: Building India's Infrastructure
Exceptional Performance
About Shree Cement Ltd
Shree Cement Ltd is one of India's leading cement manufacturers with a strong presence across North, East, and Central India. Founded in 1979 in Beawar, Rajasthan, the company has grown into one of the most efficient and profitable cement producers in the country. Shree Cement operates multiple brands including Shree Ultra, Bangur Cement, and Rockstrong, catering to diverse customer segments across retail and institutional markets. The company has consistently demonstrated operational excellence with one of the lowest power and fuel costs in the industry, driven by captive power plants and efficient energy management. With a current capacity of over 50 MTPA and ongoing expansion projects, Shree Cement is well-positioned to capitalize on India's infrastructure growth story.
💎 Operational Excellence & Profitability
Shree Cement demonstrated exceptional 304% YoY profit growth and 59% EBIDT expansion, achieving industry-leading operational efficiency and strong realization improvements despite cost pressures in the cement sector.
Q2 FY26 Financial Performance Highlights
Revenue (₹ Cr)
4,761
⇡ 17% YoY
EBIDT (₹ Cr)
974
⇡ 59% YoY
Net Profit (₹ Cr)
310
⇡ 304% YoY
EPS (₹)
85.51
⇡ 304% YoY
| Financial Metric | Sep 2025 | Jun 2025 | Sep 2024 | YoY Change |
|---|---|---|---|---|
| Sales (₹ Cr) | 4,761 | 5,281 | 4,054 | ⇡ 17% |
| EBIDT (₹ Cr) | 974 | 1,333 | 613 | ⇡ 59% |
| Net Profit (₹ Cr) | 310 | 644 | 76.6 | ⇡ 304% |
| EPS (₹) | 85.51 | 178.12 | 21.19 | ⇡ 304% |
📈 Interim Dividend Declaration
The Board declared an interim dividend of ₹80 per equity share, reflecting the company's strong financial performance and commitment to rewarding shareholders. The record date for the dividend will be announced shortly.
💡 Strategic Growth Drivers
- Strong Demand: Robust infrastructure and housing sector demand driving volume growth
- Operational Efficiency: Industry-leading cost structure with efficient power management
- Market Expansion: Strategic presence across North, East, and Central India markets
- Product Portfolio: Diverse brand portfolio catering to different customer segments
- Capacity Utilization: Optimal utilization of existing capacities supporting profitability
Operational Performance & Market Position
Strong Operations
Business Segments & Market Presence
Shree Cement has demonstrated strong operational performance across its business segments, with efficient capacity utilization and strategic market positioning. The company's focus on operational excellence and cost leadership has resulted in industry-leading profitability metrics despite sector-wide challenges.
Cement Business
Capacity
50+ MTPA
Market Reach
Pan-India
Brands: Shree Ultra, Bangur Cement, Rockstrong catering to diverse segments. Strong presence in North, East, and Central India with ongoing capacity expansion projects to strengthen market position.
Power Business
Captive Capacity
752 MW
Cost Advantage
Significant
Advantage: Extensive captive power plants providing cost competitiveness. Focus on renewable energy integration and energy efficiency contributing to sustainable operations and cost leadership.
Operational Metrics
Utilization
High
Cost/tonne
Industry Low
Efficiency: Industry-leading operational efficiency with one of the lowest power and fuel costs. Continuous improvement initiatives driving productivity and cost optimization across operations.
Market Presence
Geographies
15+ States
Market Share
Growing
Expansion: Strategic presence across key growth markets. Focus on deepening penetration in existing markets while expanding into new geographies through organic and inorganic opportunities.
Technical Parameters & Market Position
Current Price
₹ 28,585
Market Cap
₹ 1,03,137 Cr
Stock P/E
60.0
Book Value
₹ 2,850
Capacity Expansion & Growth Strategy
Shree Cement is pursuing a balanced growth strategy with focus on both organic capacity expansion and strategic market development. The company is investing in debottlenecking existing plants and setting up new grinding units to enhance capacity utilization and market reach. The expansion projects are strategically located to tap into high-growth markets and optimize logistics costs. The company maintains a strong balance sheet to support growth initiatives while delivering consistent shareholder returns.
⚠️ Key Challenges & Risk Factors
- Input Cost Inflation: Volatility in prices of key inputs like coal, petcoke, and diesel
- Competitive Intensity: Increasing competition in cement sector affecting pricing power
- Logistics Costs: Transportation costs impacting overall cost structure
- Regulatory Changes: Evolving environmental regulations and compliance requirements
- Economic Cycles: Sensitivity to economic cycles and infrastructure spending patterns
💡 Investment Perspective & Outlook
- Growth Potential: Well-positioned to benefit from India's infrastructure and housing growth
- Operational Excellence: Industry-leading cost structure and efficiency metrics
- Market Leadership: Strong brand equity and market position in key regions
- Financial Strength: Robust balance sheet supporting growth initiatives and shareholder returns
- Sustainability Focus: Increasing focus on green manufacturing and sustainable operations
Industry Analysis & Competitive Positioning
Cement Sector Performance Overview
| Parameter | Shree Cement | Industry Position | Competitive Advantage |
|---|---|---|---|
| Operational Efficiency | Industry Leader | Top Performer | Lowest power and fuel costs in industry |
| EBIDT Margin | 20.5% | Above Average | Superior cost management and realizations |
| Profit Growth (YoY) | ⇡ 304% | Industry Best | Exceptional operational performance |
| Market Presence | North, East, Central | Strategic Footprint | Presence in high-growth cement markets |
| Brand Portfolio | Diverse Range | Comprehensive | Catering to different customer segments |
| Power Cost Advantage | Significant | Industry Leader | Extensive captive power capacity |
Investment Perspective: Shree Cement presents a compelling case of operational excellence and growth leadership in the cement sector. The company's exceptional Q2 performance, coupled with strong market position and industry-leading cost structure, positions it as a key beneficiary of India's infrastructure growth story. While trading at premium valuations (P/E 60), Shree Cement's operational efficiency, growth visibility, and consistent shareholder returns justify its positioning for long-term investors seeking exposure to India's construction materials sector.
⚠️ Market Dynamics & External Factors
Infrastructure Push: Government's strong focus on infrastructure development driving cement demand
Housing Sector: Robust demand from both urban and rural housing segments
Input Cost Management: Volatility in fuel and raw material prices impacting cost structures
Environmental Regulations: Increasing focus on green manufacturing and sustainability compliance
Logistics Optimization: Transportation costs and efficiency critical for profitability
🏢 Management Commentary
"Our Q2 FY26 performance reflects the strong underlying demand in the cement sector, driven by infrastructure development and housing projects across our key markets. The significant improvement in profitability is a result of our continued focus on operational efficiency, cost optimization, and better realizations. We have successfully navigated the challenges of input cost inflation through strategic procurement and operational excellence.
"The government's continued focus on infrastructure development through various initiatives including the National Infrastructure Pipeline and housing schemes provides strong growth visibility for the cement sector. Our expansion projects are progressing as per schedule, which will further strengthen our market position and capacity utilization.
"The declaration of ₹80 per share interim dividend underscores our commitment to creating value for shareholders while maintaining adequate resources for future growth initiatives. We remain cautiously optimistic about the demand outlook and are well-positioned to capitalize on the opportunities in the evolving market landscape."
- Company Management, Shree Cement Ltd