SHREECEM Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹6,101 Cr
verified against source
Revenue YoY
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EBITDA
Pending
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Where this quarter sits.
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What the record says.
Shree Cement delivered a strong Q4 FY26 with domestic cement volumes of 10.56 million tons (+11% YoY) and total volumes of 10.77 million tons (+23.2% QoQ). Operating EBITDA jumped 34% QoQ to INR 1,212 crore with EBITDA per ton improving to INR 1,125. Capacity utilization rose to 66% from 56% in Q3. Full-year volumes grew 2.2% to 36.4 million tons with realizations improving 3.6% to INR 4,732/ton. The company commissioned its Kodla integrated plant (3.65MT clinker + 3.5MT cement), taking Indian capacity to 69.3 million tons. Management targets 40 million tons for FY27 (+10% YoY). Key headwinds include Middle East geopolitical tensions impacting fuel costs and moderate monsoon forecasts; fuel cost per kcal expected to rise 10-12% in Q1 with cumulative cost inflation of INR 150-200/ton. Cash position remains robust at ~INR 6,400-6,700 crore with net cash. Expansion to 80MT by 2029 remains on track but pace may adjust to demand conditions.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets cement volume of approximately 40 million tons for FY27, implying ~10% growth over FY26's 36.4 million tons, growing 1% above industry average.
- Company plans to spend approximately INR 1,500 crore during FY27 focused on RMC expansion to 50-55 plants, railway sidings, and preliminary work on Meghalaya plant.
- Full-year depreciation for FY27 maintained at INR 1,600-1,700 crore as per previous guidance.
- Long-term target of 80 million tons by 2029 remains stated but management acknowledges dynamic situation and has slowed CapEx aggression given industry peers also moderating expansion.
Risks flagged
- The Red Sea conflict has disrupted shipments through Strait of Hormuz, causing fuel costs per kcal to rise from INR 1.60 to INR 1.76-1.80 (+10-12%) with further Q2 impact expected. Management notes 90-day coal inventory buffer means cost inflation will flow through incrementally.
- Management explicitly flags forecast of moderate monsoon conditions as a potential headwind that may impact cement sector growth momentum in the short term alongside geopolitical factors.
- Average lead distance increased by ~12km to 457km in Q4, causing freight cost inflation. Management targets returning to sub-440km but this depends on regional demand-supply dynamics.
- While pricing gap with top players has compressed to INR 15-20/bag, upcoming capacities in North region could pressure market share. Management sacrificed volumes historically to maintain pricing but is now chasing volumes.
Key quotes
- Q2 and Q3 of last financial year, we suffered to pull up our prices. We did not aggressively sell. Once the prices have established to a level where the delta between the top players and us has reduced significantly, we don't intend to give up that advantage. We would like to have now our fair and proper market share. Profitability is the prime focus.
- As Mr. Akhoury has already informed you, we are pursuing three distinct places. One is we will be increasing our RMC plants during 2026, 2027. Number two, we are aggressively working on railway sidings. Number three, the Meghalaya expansion, for which orders have already been placed.
- We have moved to a more stable pricing platform, narrowing the gap between the topmost player and us by almost INR 20 a bag, and now we will be chasing volumes. We have delivered on both these accounts, which explains our ethos of delivery and not proclamation.
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