Shree Cement’s Q2 FY26 earnings call highlighted a 6.8% YoY increase in cement sales volume and a rise in realization per ton to INR 4,840. EBITDA increased by 46% to INR 851 crores. The company commissioned a new clinkerisation unit and continues to focus on premium products and green power, with 63% of electricity from green sources. Expansion in the UAE is also progressing well.
Financial Performance Overview
Shree Cement reported a 6.8% year-over-year increase in total cement sales volume for Q2 FY26. The realization per ton increased to INR 4,840, driven by a higher share of premium products, which now constitute 21% of sales, compared to 15% in the same quarter last year. Total EBITDA increased by 46%, reaching INR 851 crores.
Operational Highlights
The company successfully commissioned a 3.65 million ton clinkerisation unit at Jaitaran, Rajasthan. A 3 million ton cement mill is expected to be commissioned shortly. Work on the integrated project at Kodla, Karnataka, is in its final stage and is also expected to be commissioned this quarter. Shree Cement also commissioned a 20-megawatt solar power plant in Chitrakoot, UP, bringing the group’s total green power capacity to 612 megawatts.
Sustainability Initiatives
Shree Cement emphasized its commitment to green energy, with 63% of its electricity consumption coming from green sources during the first half of FY26. All manufacturing locations are zero liquid discharge facilities, with 100% of waste being treated, recycled, and reused.
UAE Operations
The company’s UAE operations registered record quarterly performance, with sales up by 34% and EBITDA increasing by 158% to AED 52.53 million. This improvement is attributed to increased realization and enhanced operational efficiency. The expansion of the UAE unit is progressing as planned.
Strategic Focus
Shree Cement will continue to focus on premium products, aiming to maintain a share of around 20% of total trade volumes. The company expects demand to be stimulated by steady employment conditions and infrastructure development, along with growth in the housing sector.
Capacity Expansion Plans
The company expects to reach a production capacity of approximately 72 to 75 million tons by March 2027. The timing of reaching 80 million tons will depend on demand and capacity utilization and may shift between FY28 and FY29.
Cost Management and Efficiency
Shree Cement aims to increase its rail share in outbound logistics to approximately 20%, which is expected to result in savings of at least INR 100 per ton. Focus is also directed toward increasing the AFR (Alternate Fuel and Raw materials) consumption, with current consumption around 2.3%.
Source: BSE
