Shree Cement (SHREECEM) Q2 25/26 earnings summary

Executive summary

• GST on cement reduced from 28% to 18%, fully passed to customers, expected to boost long-term demand.

• Value over volume strategy maintained, with premium product share rising from 15% to 21% YoY.

• Total cement sales volume up 6.8% YoY; combined cement and clinker volume up ~5%.

• UAE operations delivered record performance, with significant YoY growth in sales and EBITDA.

• 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.

Financial highlights

• Realization per tonne increased from INR 4,451 to INR 4,840 YoY, driven by premiumization.

• EBITDA rose 46% YoY to INR 851 crore; EBITDA per tonne up 43% YoY to INR 1,105 (adjusted for one-off).

• 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.

Outlook and guidance

• Expectation to grow in line or slightly ahead of industry, with continued focus on value over volume.

• Demand boost anticipated from GST cut, but short-term impact uncertain; long-term outlook positive.

• Capex guidance of INR 3,000 crore for FY 2026-2027; capacity target of 80 million tonnes may extend to FY 2029.

• FY 2026 volume guidance at 37–38 million tonnes.

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