Shree Cement Q2: Net profit jumps fourfold to ₹309.8 crore; shares in focus

The company had posted a net profit of ₹76.64 crore in the July-September period a year ago, according to a regulatory filing from the Bangur family-promoted Shree Cement Ltd (SCL).

Its revenue from operations increased by 17.43% to ₹4,761.07 crore during the quarter under review. It was at ₹4,054.17 crore in the corresponding quarter of the preceding fiscal year.

The revenue growth was "driven by volumes, premiumisation push and value over volume strategy adopted by the company", according to an earnings statement by the company.

Total expenses of SCL were at ₹4,506.37 crore, up 7% in the September quarter.

Though the company has not specified the total sales volume, it said it was "up by 6.8% on a YoY basis".

Moreover, the contribution from sales of premium products increased to 21.1% of trade.

Total income of SCL, which includes other income, was up 16.6% to ₹4,940 crore in the September quarter.

Commenting on the results, Managing Director Neeraj Akhoury said, "Our Q2 results underscore the resilience of our business operations and the agility of our teams in navigating a dynamic environment. We remain steadfast in our commitment to enhancing shareholder value through disciplined execution and continuous innovation."

Regarding the capex plan, Sree Cement said that in the second quarter, it commissioned a clinkerisation line of 3.65 MTPA capacity at its integrated project plant at Jaitaran, Rajasthan.

“The cement mill of 3.0 MTPA at this site is also expected to be commissioned in the coming days. The work on the integrated project at Kodla, Karnataka, of 3.0 MTPA cement capacity is in the final stage of completion," it said, adding, "The company is continuously exploring various opportunities to achieve its goal of +80 MTPA cement capacity."

Shree Cement: The outlook

On the outlook, the company said high-frequency indicators point to a pickup in real GDP growth in the second half of FY26, supported by an above-normal monsoon, healthy progress in kharif sowing, and adequate reservoir levels.

"Steady employment conditions, benign inflation, and the recent rationalisation of GST rates are expected to further stimulate demand," it said.

Shree Cement Ltd is engaged in the manufacturing of cement and autoclaved aerated concrete (AAC) blocks. The company has installed a cement production capacity of 46.4 million tonnes per annum (MPTA) in India alone, and the number goes up to 50.4 million tonnes, including overseas. It also has a business interest in power generation with an installed commercial power capacity of 300 megawatts, along with a captive and green power capacity of 452 MW.

The company sells cement under three brand names: Shree Ultra Jung Rodhak Cement, Bangur Cement, and Rockstrong Cement. Shree Cement is promoted by Calcutta-based industrialist Hari M Bangur.

Shares of Shree Cement Ltd on Tuesday settled at ₹28,534.50 apiece on the BSE, down 0.23% from the previous close.

On the NSE, the stock ended at ₹28,565, down 0.087%.