Shree Cement vs Craftsman Automation Q4 FY26

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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.

Craftsman Automation reported a mixed Q4 FY26. The powertrain segment saw margin improvement due to reduced repair maintenance and better product mix, but overall capacity utilization remains at 60-70%. The alloy wheel business exited March at an annualized run rate of 3 million wheels, with revenue of ~₹280 crore for FY26. The Sunbeam restructuring is ongoing, with management exiting unprofitable customers and products, expecting margin traction from Q2 FY27. Management guided for mid-teens revenue growth in FY27, driven by new projects across segments. The large engine powertrain business is on track to reach $100 million revenue by FY29-30. Key risks include inflationary manpower costs, inability to pass on commodity price increases, and potential import competition in alloy wheels.

Guidance read

Mid-teens revenue growth in FY27: Management expects double-digit revenue growth, specifically mid-teens, for FY27, assuming stable aluminium prices. Net debt to EBITDA below 2x in FY27: Management targets net debt to EBITDA to fall below 2x in the current fiscal year, and further to 1.5x. Sunbeam margin improvement from Q2 FY27: Restructuring of Sunbeam (exiting unprofitable customers/products) is expected to show margin traction from Q2 FY27. Large engine powertrain $100M revenue by FY29-30: The large engine powertrain business is on track to reach $100 million in revenue by FY29-30, with phase two expansion decision by September 2026.

Risk read

Key risks include Inflationary manpower costs — Management highlighted that labor cost inflation (20% YoY) is a major concern, difficult to pass on to customers, and could pressure margins.; Aluminium price pass-through and import competition — Analyst raised concerns about alloy wheel imports and commodity price pass-through; management acknowledged the risk and is cautious on further capacity expansion.; Sunbeam restructuring execution risk — Sunbeam's margin improvement depends on successful exit of unprofitable business and customer renegotiations; capacity utilization may temporarily drop to 45-50%.; High capex and debt levels — Despite management's confidence, net debt of ~₹3,300 crore and ongoing capex (land acquisition, new plants) could delay deleveraging if growth slows..

Promise ledger

Scorecard data is being built as historical quarters are processed.