Shree Cement Reports Q1'FY27 Results: Volume Grows as Premium Products Reach 23.3% of Trade

Shree Cement Reports Q1'FY27 Results: Volume Grows as Premium Products Reach 23.3% of Trade​

Shree Cement Ltd, one of India's third-largest cement groups by capacity, announced its financial results for the quarter ended June 30, 2026. The company reported strong volume growth, driven by targeted sales interventions and a concerted effort toward premiumization across its operations.

The Q1'FY27 performance highlights the company’s resilience amidst cost pressures and external economic uncertainties, while maintaining a focus on sustainable growth strategies.

Financial Performance Review​

Shree Cement posted results across standalone and consolidated segments for Q1'FY27, comparing them against previous periods.

Key financial metrics are detailed in the table below:

Operational Highlights and RMC Growth​

The company reported significant operational advancements in India operations. Cement sales volume increased by 17% year-on-year, reaching 10.23 million tonnes from 8.74 million tonnes. Total sale volume, including clinker, saw a 17.2% increase, moving from 8.95 million tonnes to 10.49 million tonnes.

The push towards higher value products is evident as the sales of premium products jumped to 23.3% of total trade volume, up from 17.7% in the corresponding quarter of the previous year. The Thermal Substation Rate (TSR) also showed improvement, rising to 5.1% compared to 1.9% in Q1'FY25-26.

Ready-Mix Concrete Business Strengthening​

The Ready-Mix Concrete (RMC) business continued its strong growth trajectory, reporting a 156% year-on-year volume increase. Volumes reached 2.36 lakh cubic meters, up from 0.92 lakh cubic meters in the corresponding quarter of the previous year.

Shree Cement further strengthened its RMC network by commissioning 8 new plants, bringing the total number of operational RMC plants to 33. The business now covers 17 cities across 11 states, reinforcing its standing as one of India's fastest-growing organically built RMC networks.

Management Commentary and Capex Progress​

Mr. Neeraj Akhoury, Managing Director of Shree Cement Limited, noted that the quarter demonstrated healthy demand momentum and strong volume growth alongside progress in the premiumization drive. He stated that the increase in premium products to 23.3% reflects brand strength. The performance also showcased the operating model's resilience despite cost pressures and external uncertainties.

Regarding future investments, work on the proposed greenfield integrated plant in Meghalaya is progressing satisfactorily. Necessary clearances have been obtained, and orders for major plant and machinery items have been placed. This project is scheduled for completion by the quarter ending March 31, 2028.

Sustainability Initiatives and Outlook​

Shree Cement continues to prioritize sustainability. The company's share of green electricity in total consumption stood at 65.2% in Q1'FY27, an increase from 64% in Q1'FY26. Green power generation capacity currently stands at 666.5 MW (including wholly owned subsidiaries in India).

All manufacturing locations operate on a Zero Liquid Discharge basis, treating and recycling 100% of generated wastewater. These efforts contributed to the company maintaining a water positivity index of more than 8 times in FY2025-26. CARE ESG Ratings Limited upgraded the Environmental, Social and Governance (ESG) rating Score to 73.8 from 70.8 while reaffirming the Rating Symbol of 'CareEdge-ESG 1'.

The market outlook for the cement sector remains positive due to rising consumption, infrastructure spending by the government, stable inflation, and favorable policy measures. However, geopolitical tensions in West Asia and the possibility of a moderate monsoon are noted as potential short-term challenges.

SHREECEM Stock Price Movement​

As of 3:12 PM, shares of SHREE CEMENT LIMITED are shedding value in live trading, slipping 1.91% to trade at ₹25950. The stock has seen a traded volume of 45,232 shares so far today.