Shree Cement (SHREECEM) Q2 25/26 earnings summary

Executive summary

• Cement sales volume grew 6.8% year-over-year to 7.9 million tonnes in Q2 FY26, with premium product share rising from 15% to 21%.

• UAE operations delivered record performance, with sales up 34% and EBITDA up 158% year-over-year, supporting consolidated results.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2025 were approved and reviewed by statutory auditors, with no material misstatements identified.

• Interim dividend of Rs. 80 per equity share declared, payable to shareholders on record as of 3rd November 2025.

• The company commissioned new clinker and solar power capacities, expanded its RMC portfolio, and maintained a high green power share at 63% in H1 FY26.

Financial highlights

• Standalone revenue from operations for Q2 FY26 was Rs. 4,303.20 crore, up from Rs. 3,727.00 crore in Q2 FY25; consolidated revenue was Rs. 4,761.07 crore, up from Rs. 4,054.17 crore year-over-year.

• Standalone net profit for Q2 FY26 was Rs. 277.14 crore, compared to Rs. 93.13 crore in Q2 FY25; consolidated net profit was Rs. 309.82 crore, up from Rs. 76.64 crore year-over-year.

• Standalone EBITDA for Q2 FY26 was Rs. 1,008.30 crore, up from Rs. 770.11 crore in Q2 FY25; consolidated EBITDA was Rs. 1,152.88 crore, up from Rs. 794.86 crore year-over-year.

• Realization per tonne increased 9% year-over-year to INR 4,840, driving a 46% rise in EBITDA to INR 851 crore; however, sequential EBITDA fell 31% due to monsoon-related volume decline.

• UAE sales revenue grew 50% year-over-year, with EBITDA rising from AED 20.34 million to AED 52.53 million.

Outlook and guidance

• Management expects to grow in line or slightly ahead of industry, maintaining a value-over-volume strategy and premium product focus.

• Demand outlook remains cautious in the short term due to post-festival labor shortages and the lagged impact of GST cuts, but long-term prospects are positive.

• Capex guidance is INR 3,000 crore annually for FY26 and FY27, with capacity targets of 72–75 million tonnes by March 2027 and up to 80 million tonnes by FY29, depending on demand.

• Management continues to focus on operational efficiency and cost control, with no separate reportable segments as per Ind AS 108.