Shree Cements Ltd. share price target

Reported PAT increased 197.6% YoY to Rs. 277cr owing to higher topline and lower finance costs (-10.5% YoY). The company's focus on value-over-volume strategy and premiumisation helped services tax rates on cement to 18% from 28%, which is expected to boost cement demand in the long term. Additionally, stable employment and low inflation are expected to boost demand, driving growth in infrastructure development and the housing sector, which will be favourable for cement demand. The company's focus on increasing the share of green power is expected to drive its growth better...

Shree Cement (SRCM) has been comparatively slower than its peers in terms of capacity expansion in one of its core markets in the north region, which led to market share loss for SRCM and also risks its pricing strategy over the medium term.

Near-term profitability is likely to remain constrained by elevated input costs and subdued pricing in key regions. Nonetheless, a post-monsoon recovery in demand, improving plant utilization, and commissioning of new capacities are expected to support a gradual earnings rebound.

Shree Cement reported a resilient performance in Q2FY26 despite seasonal headwinds, supported by premiumization and cost discipline. Revenue rose 15% YoY to Rs43bn down 12% QoQ driven by stronger realizations and an improved product mix, while EBITDA increased 46% YoY to Rs8.5bn, translating to Rs1,049/t up 44% YoY. PAT surged 198% YoY to Rs2.8bn, underscoring robust margin recovery. Cement volumes grew 6.8% YoY to 7.9mn tonnes, though sequentially lower due to extended monsoons and softer North India demand. Realizations improved to Rs4,840/t, aided by the premium segment's share...

About the stock: Shree Cement is the 3rd largest cement producer in India with Continuous focus on operational efficiencies to further improve EBITDA/ton: Company's EBITDA/ton improved substantially YoY to 1235/ton in H1FY26, primarily due to better realizations as company remains focused on increasing share of premium product portfolio (reached 21% of trade sales in Q2FY26). Going ahead, though we expect company's EBITDA/ton to remain flattish in H2FY26 (as compared to H1FY26), but full year FY26E EBITDA/ton would be significantly better on YoY basis. Moreover, profitability is expected to improve...

Shree Cement (SRCM) reported standalone EBITDA (adjusted) at Rs8.75bn (up 48% YoY, albeit down 29% QoQ), which came in ~10% below our estimate. In contrast to its weak YoY volume growth (-8%) in Q1FY26, SRCM reported ~4% growth in Q2FY26 which is in line with the industry growth estimate.

We maintain our BUY recommendation on the stock.

Shree Cement’s (SRCM) 2QFY26 EBITDA was below our estimate due to higher-than-estimated opex/t. EBITDA (adjusted for one-off) stood at INR8.8b (up 48% YoY; ~9% below our estimates).

We recommend BUY on Shree Cement Ltd. with a Target Price of Rs 33,960/share, offering an upside potential of 13% from CMP.

We maintain our BUY recommendation on the stock.

Shree Cement’s (SRCM) Q1FY26 volume declined 7% YoY, yet the EBIDTA surged 34% YoY led by price hikes. With blended realisation rising ~4% QoQ (up 10% YoY), EBITDA/t catapulted 44% YoY (down a mere 2% QoQ) to INR 1,373.

SRCM reported a weak operating standalone performance in Q1FY26, impacted by a 7% YoY decline in volumes impacted by geopolitical issues in May'25. Blended NSR rose 3.8% QoQ, supported by significant price hikes in the East and South regions post Mar'25. Power and fuel costs continued to decline, aided by a higher share of renewable energy, helping SRCM achieve an EBITDA of Rs1,373/t, though other expenses remained elevated. As cement pricing across regions remain sticky aided by relatively better demand, we expect SRCM to deliver strong Q2 on a weak base. With its focus on value over volume,...

Shree Cement (SRCM) reported a robust performance in Q1FY26 with EBITDA growing by 34% YoY to Rs12bn, driven by effective cost control and pricing strategy. Net profit almost doubled to Rs6,185mn, up 95% QoQ, underlining the company's margin improvement and operational leverage. The EBITDA margin expanded by nearly 590 bps YoY to 24.8%, and cash profit also saw a healthy 24% YoY rise to Rs12mn. Total sales volume for the Q1 2026 stood at 9mn tonnes. The contribution of premium cement products in trade sales improved to 17.7%, up from 15.6% QoQ. Given the improvement in cement prices, we...

Shree Cement’s (SRCM) 1QFY26 operating performance was in line with our estimates. EBITDA increased ~34% YoY to INR12.3b and EBITDA/t rose ~44% YoY to INR1,373 (est. INR1,325).

In a recent media interaction, Shree Cement’s management stated that cement demand was slightly subdued in May due to a heatwave and geopolitical uncertainty (IndiaPakistan tensions) in the North.

Shree Cement’s (SRCM) FY26 playbook, as articulated by Chairman Mr H M Bangur in a recent media interview (Link), seems decisive and leaves little room for ambiguity.

Shree Cement's Q4FY25 revenue rose slightly, owing to an increase in sales volume. The company's growing focus on premium products improved average realisation per tonne in the quarter. The company is also continuing to focus on increasing the share of green power, which will further reduce the cost of producing cement. Despite the decrease in the cost of sales, higher employee costs, other operating expenses and tax outgo shrunk the profit margin this quarter. For FY26, the company projects cement demand to grow 6.5%-7.5%, owing to sustained capex in infrastructure projects, recovery in the rural economy, continuing...

SRCM commissioned 3mtpa GU at Etah (UP) and 3.4mtpa GU at Baloda Bazar (CG), taking its total cement production capacity to 62.8mtpa. SRCM delivered robust operating performance in Q4FY25 on the back sharp 4.5% QoQ jump in NSR while volumes grew at moderate pace, 3.3% YoY to 9.84mt. SRCM continued to adopt value over volume strategy in FY25 and achieved industry leading EBITDA/t however volume remained flattish....

Keeping up with its ‘industry-superior’ performance trend, Shree Cement (SRCM) reported a fabulous Q4FY25. Adjusted EBITDA/t stood at a whooping INR 1,459, surging 35% QoQ (reported being INR 1,404) being 7% ahead of our estimate.