Shree Cement Ltd is favouring profitability over volume in an industry racing to scale up capacities and chase market share. Its March quarter (Q4FY25) results reflect that, though not without raising questions.
The company continued to deliver industry-leading blended profitability. Reported Ebitda per tonne, one of the best in the sector, rose to a multi-quarter high of ₹1,404 from ₹1,079 in Q3 and ₹1,391 in Q4FY24, thanks to strong growth in realisations.
Average cement realization in Q4FY25 stood at ₹4,758 per tonne, up 4.5% sequentially, flattish year-on-year, aided by better regional mix and rising share of premium products. The premium portfolio, including the newly launched Bangur Marble Cement, contributed 15.6% of Q4FY25 volumes.
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Sales volume at 9.84 million tonnes (MT) was up 3.1% year-on-year, helped by a rebound in infrastructure and real estate demand, both rural and urban. Yet, utilisation remains tepid at around 72%, lagging peers that are operating above 80%. The management doesn’t expect this to change meaningfully in the near term. Shree Cement is adding capacity. FY26 capex is budgeted at ₹3,000 crore. Cement capacity reached 62.8 MT in March and is slated to touch 68.8 MT by FY26, with new units at Kodla (Karnataka) and Jaitaran (Rajasthan) coming online.
What Shree Cement lacks in volume aggression, it made up in energy efficiency.The company added 60.3MW of solar capacity in Q4FY25, taking its green power portfolio to 582MW—a 21% increase over the 480 MW when FY25 began. Green power now accounts for 60% of Shree’s total electricity consumption, among the highest in the sector. This shift has helped lower fuel costs. Management expects further savings as renewable capacity ramps up.
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Shree Cement forecasts 6.5–7.5% industry growth in FY26, driven by post-election government capex and broader construction tailwinds. The company is targeting high single-digit volume growth in FY26.
But the bigger question is whether it can retain its edge on margins without sacrificing growth. Defending profitability in a market bracing for new supply won’t be easy.
“With over 95 mt capacity expected to get commissioned (about 34% in East) over next two years, maintaining value over volume can be challenging for Shree Cement,” said PL Capital. The broking firm has tweaked its FY26/27 Ebitda estimates by 4%/-1.5% on account of better near-term pricing.
For now, Shree Cement is proving that scale isn’t everything. The company’s shares hit a new 52-week high of ₹31,835 apiece on Thursday. With the sector heating up, investors will be watching whether premium positioning alone can cement long-term outperformance.
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