Synopsis:
Shree Cement posted a strong Q1FY26 performance, with EBITDA rising 34% YoY and net profit nearly doubling QoQ. Backed by margin expansion, premium product contribution, and aggressive capacity expansion.
The company is one of India’s leading cement manufacturers, known for its operational excellence, strategic capacity expansions, and strong financial discipline.
With market capitalization of Rs. 1,09,398 cr, the shares of Shree Cement Ltd are currently trading at Rs. 30,280 per share from its previous closing of Rs. 30,205 per share. IDBI Capital has upgraded its rating from hold to buy on Shree Cements Ltd. has a share price target of 38,433 with an upside of 26.82%.
News
Shree Cement delivered a robust performance in Q1FY26, driven by disciplined cost control and a favorable pricing environment. EBITDA grew 34% year-on-year to Rs. 1,200 crore, while net profit surged 95% quarter-on-quarter to Rs. 618.5 crore, reflecting enhanced operating leverage. The EBITDA margin improved significantly by 590 bps YoY to 24.8%, and cash profit rose 24% YoY.
Sales volume stood at 9 million tonnes, with premium cement contributing 17.7% to trade sales, up from 15.6% in the previous quarter. These gains led to an upward revision in EBITDA estimates for FY26 and FY27, and a new target price of Rs. 38,433 along with a BUY rating, given by IDBI Capital.
Also read: Stock in Focus after Board Approves Strategic Investment Proposal from UNIQUBE Global Managed Services
Rationale
Capacity Expansion and Cost Leadership – Capacity expansion remains a key strategic focus. With ongoing projects in Jaitaran and Kodla, the company’s cement capacity is set to reach 68.8 MTPA, aiming for 80 MTPA by FY28.
Shree Cement’s UAE-based Union Cement Company also delivered a turnaround performance with EBITDA up 397% YoY. A new 3.0 MTPA capacity addition in the UAE is planned with an AED 110 million investment.
Expansion of Ready-Mix Concrete Business
The Ready-Mix Concrete (RMC) business is rapidly scaling, with 6 new plants added in Q1FY26, bringing the total to 21. The company aims to expand this to 50 plants by FY26-end, marking RMC as a strong growth pillar.
Written by Manideep Appana
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