SHREECEM Q4 FY25 earnings call.
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Revenue
₹5,532 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹1,383 Cr
latest reported figure
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Shree Cement delivered a strong Q4 FY25 with 9.84 million tons sales volume (up 13% QoQ) and INR 1,383 crore EBITDA (up 47% YoY), driven by 5% sequential improvement in realization to INR 4,758/ton and lower fuel costs. EBITDA per ton surged 29% to INR 1,406. Premium product share expanded to 15.6% from 11.9% YoY, validating the brand elevation strategy. Green energy now constitutes 60.2% of total electricity consumption. Management targets 39 million tons volume in FY26 (vs industry guidance of 6.5-7.5% growth) while maintaining its 'most profitable player' strategy over volume leadership. Two grinding units (Etah 3MT, Raipur 3.4MT) commissioned, taking installed capacity to 62.8 million tons. However, capacity utilization remains subdued at 72% company-wide with South at only 51%, and new competitor capacity additions could pressure pricing in an oversupply environment. Net debt stands at ~INR 5,400 crore with INR 3,000 crore CapEx planned for FY26.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to achieve approximately 39 million tons volume in FY26, implying growth roughly in line with or slightly ahead of industry expectations of 6.5-7.5% demand growth.
- Cement demand expected to grow by 6.5-7.5% during FY2026, fueled by infrastructure projects, rural recovery, real estate momentum, and softening interest rates.
- Integrated cement units at Jaitaran (Rajasthan) and Kodla (Karnataka) scheduled for commissioning by Q1 FY26 and Q2 FY26 respectively. Cement capacity expected to reach 68.8 million tons by end of FY26.
- Total CapEx for FY26 earmarked at approximately INR 3,000 crore for ongoing expansion projects. Depreciation expected at INR 3,000-3,200 crore.
Risks flagged
- Company-wide capacity utilization at 72% (South at only 51%) with more capacity additions coming in FY26 could keep utilization depressed, impacting fixed cost absorption and profitability optimization.
- Multiple new entrant capacities expected in the system; management acknowledged that in a supply-overhang scenario, matching competitor pricing would be necessary to gain market share, potentially sacrificing realization improvements.
- Management flagged that demand was not as robust as expected in April through first week of May, attributing it partly to geopolitical factors (war), indicating near-term demand visibility remains uncertain.
- Analyst questioned management on regional cost structure (manufacturing and delivered cost including freight) for upcoming capacity decisions in South/West regions. Management declined to share citing strategic sensitivity, limiting external analysis of regional profitability.
Key quotes
- Our strategy is not to be the biggest volume player in the industry, but be the most profitable player in the industry. We do not distribute revenue; we distribute profits.
- You cannot, in a supply-overhang scenario, enjoy the cake and have it too. You have to play an equilibrium between volumes and prices. We have told you we have never aspired to be the number one cement seller in the country. We aspire to be the most profitable cement company in the country.
- We are creating an option at 2% [delta between treasury returns and inflation] for additional capacity because if we get two quarters like January-March, all these option costs are taken care of.
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