ACC vs Shree Cement Q4 FY26

AC

ACC

Q4 FY26 · Diversified

Ambuja Cement reported a disappointing Q4 FY26 with cost per tonne hitting ₹4,500, well above the earlier target of ₹4,000. Full-year EBITDA per tonne was ₹887, up 12% YoY, but Q4 saw significant cost inflation from packaging, fuel, and higher repairs at acquired assets (Sanghi at 57% utilization, Penna at 46%). Management admitted a 3-6 month delay in efficiency capex and guided for only ₹250/tonne cost reduction in FY27, implying average cost of ~₹4,250. Volume guidance of 80 million tonnes (8% growth) relies on stabilizing acquired assets and commissioning 10mt new capacity, but industry demand is expected to grow only 5-5.5%. Capex is being recalibrated to ₹6,000-6,500 crore for FY27, with a reset in ambition and timeline for the 140mt capacity target. Key risk: inability to pass on cost increases due to soft demand, further pressuring margins.

Guidance read

FY27 volume target of 80 million tonnes: Management expects 8% volume growth to ~80mt, driven by stabilization of acquired assets and new capacity commissioning. Cost reduction of ₹250/tonne in FY27: Targeting average cost reduction of ₹250/tonne in FY27 from Q4 FY26 exit cost of ₹4,500, implying ~₹4,250 average. Capex of ₹6,000-6,500 crore for FY27: Capital expenditure guided at ₹6,000-6,500 crore, with focus on completing ongoing projects and debottlenecking. Capacity to reach 119 million tonnes by FY27 end: Cement capacity expected to increase to 119mt by end of FY27, including 10mt of new grinding capacity.

Risk read

Key risks include Cost inflation from global factors — West Asia war led to packaging cost spikes and fuel cost increases, adding ~₹250/tonne in Q4; further escalation could derail cost reduction targets.; Soft demand limiting price hikes — Management noted demand is soft and price increases of only ₹10-15/bag have been achieved, insufficient to offset cost inflation.; Execution delays in efficiency capex — Management admitted 3-6 month delays in efficiency projects, which could push cost savings beyond FY27.; Acquired asset underperformance — Sanghi and Penna plants have low utilization (57% and 46%) and higher maintenance costs, impacting overall margins..

Promise ledger

Scorecard data is being built as historical quarters are processed.

SH

Shree Cement

Q4 FY26 · Manufacturing

Shree Cement delivered a strong Q4 FY26 with domestic cement sales volume up 11% YoY to 10.56 million tons, driven by a strategic shift to volume growth after narrowing the price gap with the top player by 15-20 rupees per bag. EBITDA rose 34% YoY to ₹1,212 crore, with EBITDA per ton improving to ₹1,125. Capacity utilization jumped to 66% from 56% in Q3. The company commissioned a 3.65 MTPA clinker and 3.5 MTPA cement plant in Karnataka, raising total capacity to 69.3 MTPA. Management guided for ~40 million tons cement volume in FY27 and capex of ₹1,500 crore. Key risks include Middle East conflict driving fuel cost inflation (expected ₹150-200/ton cost increase in Q1) and potential demand disruption from geopolitical tensions.

Guidance read

FY27 cement volume target of ~40 million tons: Management expects to achieve around 40 million tons of cement sales in FY27, implying ~10% growth over FY26. Capex guidance of ₹1,500 crore for FY27: Capital expenditure for FY27 is estimated at approximately ₹1,500 crore, primarily for RMC plants, railway sidings, and Meghalaya expansion. RMC plant count to reach 50-55 by FY27 end: The company plans to increase its RMC plant count from 26 to 50-55 by the end of FY27. UAE cement mill commissioning by September 2026: The 2.5 million ton cement mill at Union Cement UAE is scheduled to be commissioned by September 2026.

Risk read

Key risks include Fuel cost inflation from Middle East conflict — Geopolitical tensions have increased fuel costs; management expects a 10-12% rise in per kilo calorie cost in Q1 FY27, with potential further increases.; Packaging cost increase — Packaging costs have risen by ₹20/ton in Q4 and are expected to increase by another ₹80-100/ton in Q1 FY27 due to higher paper prices.; Demand slowdown from geopolitical tensions — The Middle East conflict has slowed sales in UAE, and management noted potential headwinds for the sector from geopolitical issues and monsoon conditions.; Meghalaya expansion incentives uncertain — Management has not yet received confirmed incentives from the Meghalaya government for the new plant, though the project is viable without them..

Promise ledger

Scorecard data is being built as historical quarters are processed.