Shree Cement (SHREECEM) investor relations material

Executive summary

• Q1 FY 2027 was marked as an abnormal quarter due to significant operational disruptions from the Middle East conflict, impacting fuel and raw material sourcing.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30th June 2026.

• Statutory auditors conducted a limited review and found no material misstatements in the results.

• Management emphasized a shift to consolidated reporting, with overseas and subsidiary contributions rising to 10-12% of turnover, expected to reach 20-25% in the future.

• The group remains focused on cement and cement-related products, with no separate reportable segments.

Financial highlights

• Consolidated cement sales volume for Q1 was 114.5 lakh tons, down from 119.4 lakh tons in Q4 FY 2026 due to UAE sales disruption.

• Consolidated revenue from operations for Q1 FY27 was ₹6,233.13 crore, up from ₹5,280.88 crore in Q1 FY26.

• Consolidated net profit for Q1 FY27 was ₹531.12 crore, compared to ₹643.66 crore in Q1 FY26.

• Operational EBITDA (excluding other income) was INR 1,272 crore, down from INR 1,333 crore in Q1 FY 2026.

• EBITDA per ton declined to INR 1,111 from INR 1,339 year-over-year, mainly due to higher fuel and raw material costs.

Outlook and guidance

• Management expects cost pressures to stabilize or decline in Q2, provided no further escalation in the Middle East.

• FY 2027 volume guidance remains at 40 million tons, with H1 expected to reach 19.5-20 million tons.

• Trade sales mix is targeted to revert to 70% as conversion factors and fuel mix normalize.

• CapEx guidance for FY 2027 is INR 1,500 crore for India operations; UAE expansion is separately funded.

• Continued focus on core cement operations and operational efficiency is implied.