Shree Cement (SHREECEM) Q2 26/27 earnings summary

Executive summary

• India sales volume rose 18% YoY to 9.31mt and consolidated volume increased 14% to 10.52mt; operating-update EBITDA rose 4% to INR 1,016 crore as higher fuel costs weighed on EBITDA per ton.

• Consolidated revenue increased to ₹5,896.51 crore from ₹4,761.07 crore, while reported EBITDA declined to ₹1,128.74 crore and profit after tax to ₹263.46 crore.

Financial highlights

• India realizations rose 1% YoY to INR 4,870/ton; consolidated EBITDA per ton declined to INR 966 from INR 1,055 YoY and INR 1,111 QoQ.

• Reported consolidated Q2 EBITDA was ₹1,128.74 crore vs ₹1,152.88 crore YoY; PBT was ₹367.24 crore vs ₹433.62 crore and PAT ₹263.46 crore vs ₹309.82 crore.

• Standalone Q2 revenue was ₹5,107.44 crore vs ₹4,303.20 crore; EBITDA was ₹955.11 crore vs ₹1,008.30 crore and PAT ₹205.33 crore vs ₹277.14 crore.

• H1 consolidated revenue rose to ₹12,129.64 crore; EBITDA was ₹2,612.65 crore and PAT ₹794.58 crore, both below prior year.

• Blended production cost was INR 4,636/ton vs INR 4,329 in Q1 FY27 and INR 4,245 in Q2 FY26.

Outlook and guidance

• FY27 India sales volume target is 40mt–41mt; growth is expected slightly ahead of industry if demand growth remains near 7%.

• Q3 fuel cost forecast is INR 2.15–2.20/kcal vs INR 2.09 in Q2; overall Q3 costs are expected not to differ materially from Q2.

• October pricing was better than September; premium mix actions are expected to support realizations above Q2, subject to demand and supply.

• Q3 and Q4 performance is expected to be reasonably better than, or similar to, Q2; FY27 tax-rate guidance is 31%–32%.

• Management cited industry demand growth estimates of 7%–10%, supported by infrastructure, rail, housing and data-center activity.