Shree Cement Revises Expansion Timeline to FY29; Reports Strong Q2 Performance with 198% Surge in PAT

Shree Cement Ltd, one of India’s leading cement manufacturers, has revised its capacity expansion timeline while reporting a strong performance in the second quarter of FY26. The company now targets a cement production capacity of 80 million tonnes by FY29, shifting its earlier target to align with evolving market conditions and strategic priorities.

Revised Expansion Strategy

Under the updated plan, Shree Cement aims to reach:

• 72–75 million tonnes capacity by FY27, and
• 80 million tonnes by FY29.

The company has also announced plans to set up 40 Ready-Mix Concrete (RMC) plants by FY28, further diversifying its product portfolio and expanding its footprint in the construction materials segment.

This calibrated growth approach reflects Shree Cement’s focus on sustainable and demand-aligned expansion, ensuring optimal utilization of resources and infrastructure.

Strong Financial Performance in Q2 FY26

Shree Cement delivered a robust set of financial results for the quarter ended September 2025:

The growth was driven by higher realizations, improved cost efficiency, and a stronger contribution from premium product sales.

Operational Highlights

• Cement sales volume grew 6.8% YoY.
• Premium products now contribute 21.1% of total trade volume, up from 14.9% in the same period last year — reflecting the company’s successful premiumization strategy.
• A one-time ₹23.68 crore expense was recorded under “Other Expenses” due to the transfer of certain power transmission assets to a government corporation.

Capex and Dividend

• Planned CAPEX: ₹3,000 crore for FY27.
• Interim Dividend: ₹80 per equity share declared by the Board.

These investments and shareholder rewards underline the company’s strong cash position and disciplined capital allocation.

Positive Market Outlook

Shree Cement remains optimistic about demand growth, supported by:

• Above-normal monsoon and strong kharif sowing,
• Adequate reservoir levels and improved rural liquidity,
• Steady employment conditions and controlled inflation, and
• Recent rationalization of GST rates that may stimulate infrastructure and housing demand.

Conclusion

Shree Cement’s revised expansion strategy, strong Q2 performance, and proactive investment outlook highlight its ability to adapt to market conditions while sustaining profitability and growth. With an enhanced focus on efficiency, premium product penetration, and long-term capacity building, the company is well-positioned to strengthen its leadership in India’s dynamic cement industry.

Summary:

Shree Cement has revised its expansion target, now aiming for 80 million tonnes capacity by FY29 and 72–75 million tonnes by FY27. Q2 FY26 results showed strong growth — revenue up 15% to ₹4,303 crore, EBITDA up 44% to ₹851 crore, and PAT up 198% to ₹277 crore. The company plans ₹3,000 crore in FY27 capex and announced an interim dividend of ₹80 per share. Positive demand drivers, including a good monsoon and stable macroeconomic indicators, continue to support the company’s optimistic outlook.