Shree Cement Q4 operating profit slips 9% despite 11% volume growth; dividend declared

Shree Cement Ltd on Wednesday, May 6, reported a 4.3% year‑on‑year decline in net profit to ₹532 crore for the fourth quarter of FY26, compared with ₹556 crore in Q4FY25. The figure marginally missed the CNBC‑TV18 poll estimate of ₹540 crore. The cement maker’s revenue rose 7.7% to ₹5,643 crore from ₹5,240 crore a year earlier, comfortably beating the poll estimate of ₹5,516 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 9.4% year on year to ₹1,250.7 crore, down from ₹1,381.7 crore in Q4FY25. EBITDA margins contracted sharply to 22.2%, compared with 26.4% in the corresponding quarter last year. While EBITDA came in marginally ahead of the poll estimate of ₹1,240 crore, the margin of 22.2% was slightly below market expectations of 22.5%.

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On a sequential basis, however, the quarter showed sharp improvement. EBITDA rose 36.3% from ₹917 crore in Q3FY26 (excluding a one-time ₹55.99 crore charge in Q3 related to the notification of new labour codes), and net profit nearly doubled from ₹279 crore in Q3FY26.

The board declared a final dividend of ₹70 per share. Combined with the interim dividend of ₹80 per share declared in October 2025, the total dividend for FY26 stands at ₹150 per share — a 36% increase over ₹110 per share paid in FY25.

On the operational front, total cement sales volume grew 11% year-on-year to 10.56 million tonnes from 9.52 million tonnes. Sales of premium products rose to 22% of total trade volume from 16% in Q4 FY25.

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During the quarter, the company commissioned its integrated cement plant at Kodla, Karnataka. With this, the company's installed cement production capacity in India, including wholly owned subsidiaries, increased to 69.3 MTPA.

The company is also setting up an integrated cement plant in Meghalaya. During the quarter, it incorporated a wholly-owned subsidiary to establish cement, blending, storage and packaging facilities in Mauritius.

Managing Director Neeraj Akhoury said the domestic cement sales volume growth of 11% year-on-year was supported by efforts to deepen customer engagement and expand market reach.

He acknowledged that cost pressures persisted due to the impact of the West Asia conflict, but said the company continues to improve energy efficiency and increase digitalisation. He added that with "robust demand fundamentals and ongoing digital and sustainability-led interventions, we are confident of delivering sustainable and profitable growth in the coming quarters."

On the market outlook, the company noted that India's macroeconomic environment remains resilient. However, it flagged the geopolitical conflict in West Asia and a forecast of moderate monsoon conditions as near-term headwinds for the sector.

For the full year FY26, standalone revenue from operations was ₹19,310 crore against ₹18,037 crore in FY25. Standalone net profit for FY26 was ₹1,706 crore, up from ₹1,196 crore in FY25.

Shares of Shree Cement ended 1.19% higher at ₹25,140, ahead of the result announcement on Wednesday. The stock has declined nearly 15% in the last year.