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SHREECEM - Shree Cement

📊 NSE: SHREECEM 🏢 Cement - North India 📅 Last Updated: 12/14/2025 13:15

📢 Recent Corporate Announcements

Shree Cement's ₹1,000 Cr Commercial Paper Rating Reaffirmed at CRISIL A1+

🟢 POSITIVE ⭐ 4/10

ROUTINE 📅 28 Apr 2026, 02:59 PM

CRISIL Ratings Limited has reaffirmed the credit rating for Shree Cement's Commercial Paper program. The rating for the ₹1,000.00 crore instrument remains at CRISIL A1+, which is the highest possible rating for short-term debt instruments. This reaffirmation underscores the company's robust financial health and strong liquidity position. It provides assurance to investors regarding the company's ability to meet its short-term financial obligations.

CRISIL Ratings reaffirmed the rating for Commercial Paper worth ₹1,000.00 Crores.
The rating assigned is CRISIL A1+, indicating the highest degree of safety.
The reaffirmation confirms the company's stable credit profile as of April 2026.
The disclosure was made under Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 No immediate action is required as the rating reaffirmation confirms the company's existing strong creditworthiness. Investors should maintain their positions while monitoring overall cement sector demand and input costs.

Shree Cement Schedules Q4FY26 Earnings Conference Call for May 6, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 22 Apr 2026, 04:14 PM

Shree Cement Limited has announced its conference call to discuss the financial results for the quarter ended March 31, 2026. The call is scheduled for Wednesday, May 6, 2026, at 5:30 PM IST and will be hosted by ICICI Securities. Senior management, including Managing Director Neeraj Akhoury and CFO Subhash Jajoo, will be present to interact with analysts and investors. This is a standard regulatory procedure following the conclusion of the fiscal year.

Conference call for Q4FY26 financial results scheduled for May 6, 2026, at 17:30 hrs IST.
Management representation includes MD Neeraj Akhoury, Senior Advisor Ashok Bhandari, and CFO Subhash Jajoo.
Hosted by ICICI Securities with universal access numbers +91 22 6280 1144 and +91 22 7115 8045.
International toll-free numbers provided for Singapore, Hong Kong, UK, and USA participants.

💡 Investors should monitor the call for management commentary on cement demand trends and margin outlook for the next fiscal year. No immediate trading action is required based on this scheduling announcement.

Shree Cement Receives ₹8.31 Crore Service Tax Demand Order; Company to Appeal

🟡 NEUTRAL ⭐ 4/10

LEGAL 📅 16 Apr 2026, 05:46 PM

Shree Cement Limited has received a demand order for ₹8.31 crore from the Commissioner of Central GST & Central Excise, Jodhpur. The demand pertains to alleged non-payment of service tax and includes applicable interest and an equivalent penalty. The company has stated that the order does not have a major financial impact on its operations and they disagree with the allegations. Shree Cement intends to file an appeal before the Tribunal by July 15, 2026, to contest the demand on its merits.

Service tax demand of ₹8,30,94,582 plus interest and equivalent penalty.
Order issued by the Commissioner, Central GST & Central Excise, Jodhpur on April 16, 2026.
Allegation involves non-payment of Service Tax under the Finance Act, 1994.
Company to file an appeal before the Tribunal on or before July 15, 2026.
Management confirms no major financial impact expected from this order.

💡 The demand amount is not material relative to the company's size and financials; investors should treat this as a routine legal update. No immediate portfolio action is required.

Shree Cement Receives Draft Income Tax Assessment Order with Rs 149 Crore Proposed Demand

🔵 WATCH ⭐ 6/10

REGULATORY 📅 01 Apr 2026, 09:51 PM

Shree Cement Limited has received a draft assessment order for FY 2022-23 from the Income Tax Authority, proposing additions to its returned income. This draft order suggests a potential tax demand of approximately Rs 149 crore, excluding interest. The company intends to contest these findings through the Dispute Resolution Panel or Commissioner Appeals, asserting that the disallowances are not legally sustainable. Management expects any final demand to be adjusted against pending tax refunds, minimizing the immediate impact on cash reserves.

Draft Assessment Order received under Section 144C(1) of the Income Tax Act for FY 2022-23.
Potential financial implication involves a tax demand of approximately Rs 149 crore.
Company plans to file objections and believes the proposed additions will not hold up in appellate proceedings.
The anticipated demand is expected to be adjusted against existing tax refunds due to the company.
Management states there is no major impact on the financial or operational activities of the company at this stage.

💡 Investors should monitor the progression from this draft order to a final assessment and the company's subsequent appeals. While the demand is significant, the company's ability to offset it against refunds reduces immediate liquidity concerns.

Shree Cement Board to Meet May 6 for Q4 Results and Final Dividend Recommendation

🟡 NEUTRAL ⭐ 4/10

BOARD_MEETING 📅 25 Mar 2026, 10:55 AM

Shree Cement Limited has scheduled a Board Meeting on May 6, 2026, to approve the audited standalone and consolidated financial results for the quarter and year ending March 31, 2026. The board will also consider recommending a final dividend for the financial year 2025-26. In accordance with SEBI regulations, the trading window for dealing in the company's securities will be closed from April 1, 2026, until May 8, 2026. This is a standard regulatory procedure ahead of the annual financial disclosure.

Board meeting scheduled for May 6, 2026, to review Q4 and FY26 performance.
Consideration of a final dividend for the financial year 2025-26 is on the agenda.
Trading window for designated persons to be closed from April 1, 2026, to May 8, 2026.
The meeting will cover both standalone and consolidated audited financial results.

💡 Investors should monitor the May 6 announcement for the company's full-year earnings performance and the quantum of the final dividend. No immediate action is required as this is a routine regulatory filing.

Shree Cement Receives ₹68.56 Lakh Penalty Demand from Rajasthan Mining Department

🟡 NEUTRAL ⭐ 3/10

LEGAL 📅 24 Mar 2026, 01:26 PM

Shree Cement Limited has received a demand order for a penalty of ₹68.56 lakhs from the Department of Mines & Geology, Rajasthan. The penalty is attributed to delayed compliance issues identified during an inspection of the Sheopura Kesarpura Mines conducted in 2013. The company has stated that this order will not have any significant financial impact on its operations. Management intends to pursue suitable legal actions to contest or resolve the demand.

Penalty of ₹68.56 lakhs imposed by the Superintending Mining Engineer, Ajmer Circle, Rajasthan.
The demand relates to delayed compliance under the Mineral Concession Rules, 1960, observed in 2013.
The specific site involved is the Sheopura Kesarpura Mines in Rajasthan.
Company confirms the order has no major financial impact and legal recourse will be taken.

💡 The penalty amount is negligible relative to the company's market capitalization and earnings; no immediate action is required from investors.

Shree Cement Shareholders Approve Re-appointment of Hari Mohan Bangur as Chairman for 5 Years

🟡 NEUTRAL ⭐ 7/10

MANAGEMENT 📅 23 Mar 2026, 04:20 PM

Shree Cement shareholders have approved the re-appointment of Mr. Hari Mohan Bangur as Whole Time Director and Chairman for a five-year term starting April 1, 2026. The special resolution was passed with 86.42% of the total votes in favor. Notably, there was significant dissent from public institutional investors, with 50.53% of their votes cast against the resolution. Despite this, the strong support from the promoter group, which voted 100% in favor, ensured the resolution met the required threshold for a special resolution.

Special resolution for re-appointment passed with 86.42% votes in favor and 13.58% against.
Mr. Hari Mohan Bangur re-appointed as Chairman for a 5-year term effective from April 1, 2026.
Public institutional investors showed high dissent, with 50.53% (4.19 million votes) voting against the resolution.
Promoter group provided unanimous support with 22.57 million votes cast entirely in favor.
A total of 30.87 million valid votes were polled out of 36.08 million eligible shares held by voting participants.

💡 Investors should note the continuity in leadership which provides stability, but may want to monitor the reasons behind the significant institutional dissent regarding the Chairman's re-appointment.

Shree Cement Incorporates Wholly Owned Subsidiary in Mauritius with MUR 5M Capital

🟡 NEUTRAL ⭐ 4/10

EXPANSION 📅 18 Mar 2026, 07:16 PM

Shree Cement Limited has successfully incorporated a new wholly-owned subsidiary named Shree Cement (Mauritius) Limited on March 18, 2026. The subsidiary has been established with an initial authorized share capital of MUR 5,000,000. This new entity is intended to operate within the cement industry, focusing on ancillary products and trading activities. This move signals the company's intent to potentially expand its international operations or optimize its global trading structure.

Incorporation of 100% Wholly Owned Subsidiary 'Shree Cement (Mauritius) Limited'
Initial authorized share capital of MUR 5,000,000 (Mauritian Rupee)
Business scope includes cement, ancillary products, and trading activities
Incorporation completed on March 18, 2026, following an initial intimation on March 17

💡 Investors should view this as a routine corporate expansion; monitor future disclosures for specific capital allocation or project announcements related to this international entity.

Shree Cement Declared Preferred Bidder for 373-Hectare Limestone Block in Andhra Pradesh

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 17 Mar 2026, 06:20 PM

Shree Cement Limited has been declared the preferred bidder for the Dommarnandyala-1 Limestone Block in the YSR Kadapa District of Andhra Pradesh. The mining lease area spans approximately 373 hectares, secured through an e-auction conducted by the State Government. This move is a strategic step to secure long-term raw material reserves for the company's cement manufacturing operations. Securing such large limestone deposits is critical for supporting future capacity expansions and maintaining cost efficiency in the Southern Indian market.

Declared preferred bidder for the Dommarnandyala-1 Limestone Block in Andhra Pradesh.
The mining lease covers a significant land area of 373 hectares.
Secured via an e-auction conducted by the Government of Andhra Pradesh.
Strengthens raw material security for future expansion in the South Indian region.

💡 Investors should view this as a positive development for long-term operational stability and growth. Monitor for updates regarding the final lease grant and the estimated limestone reserve capacity of the block.

Shree Cement to Incorporate Wholly Owned Subsidiary in Mauritius with MUR 5M Capital

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 17 Mar 2026, 07:40 AM

Shree Cement Limited has approved the incorporation of a wholly-owned subsidiary in Mauritius, named Shree Cement (Mauritius) Limited. The new entity will focus on cement blending, storage, packaging, and trading of materials like clinker and coal. The initial authorized capital is set at MUR 5,000,000, which the company will subscribe to entirely in cash. This strategic move aims to strengthen the company's international presence and trading operations.

Incorporation of 100% Wholly Owned Subsidiary in Mauritius approved by the Business Operations Committee.
Initial authorized capital of the new entity is MUR 5,000,000.
Business focus includes installation of cement facilities, blending, and trading of clinker and coal.
The transaction involves 100% cash consideration for the initial share capital.

💡 Monitor the scale-up of international operations through this subsidiary. The current investment is small, so focus on future capital allocation plans for this entity.

Shree Cement Commissions 3.50 MTPA Mill in Karnataka; Total India Capacity Reaches 70 MTPA

🟢 POSITIVE ⭐ 8/10

EXPANSION 📅 14 Mar 2026, 07:07 PM

Shree Cement has successfully commissioned its 3.50 MTPA cement mill at Kodla, Karnataka, marking the full commissioning of the integrated plant. This follows the recent commissioning of a 3.65 MTPA clinkerisation unit at the same site in February 2026. The final cement capacity of 3.50 MTPA exceeded the initial target of 3.0 MTPA due to equipment optimization and process improvements. This expansion brings the total capacity at the Kodla site to 6.50 MTPA and pushes the company's total domestic capacity to nearly 70 MTPA.

Commissioned 3.50 MTPA cement mill at Kodla, Karnataka on March 14, 2026
Final capacity of 3.50 MTPA is 16.6% higher than the initially planned 3.0 MTPA
Total cement capacity at the Kodla site now stands at 6.50 MTPA
Overall India cement capacity for Shree Cement has increased to approximately 70 MTPA
Integrated plant is now fully operational following clinker unit commissioning in Feb 2026

💡 This expansion strengthens Shree Cement's footprint in the Southern market and provides a clear path for volume growth. Investors should monitor the ramp-up of this facility and its impact on the company's market share in the region.

Shree Cement Receives GST Demand and Penalty Order Totaling Rs 15.6 Crore

🔴 NEGATIVE ⭐ 4/10

REGULATORY 📅 25 Feb 2026, 12:29 PM

Shree Cement Limited has received a GST demand order from the Joint Commissioner, Central Tax & Central Excise, Belagavi. The order includes a tax demand of Rs 7.8 crore and an equivalent penalty of Rs 7.8 crore, totaling approximately Rs 15.6 crore. The demand arises from alleged wrong availment of input tax credit. The company has stated it disagrees with the order and plans to file an appeal by May 23, 2026, noting that the order has no major financial impact on its operations.

Tax demand of Rs 7,79,78,359 confirmed by the Joint Commissioner, Belagavi.
Penalty of Rs 7,79,78,359 imposed, bringing the total financial implication to ~Rs 15.6 crore.
The order is based on allegations of wrong availment of input tax credit.
Company will file an appeal under Section 107 of the Karnataka GST Act within the 3-month deadline.
Management maintains that the order will not have a significant impact on financial or operational activities.

💡 Investors should note this as a routine regulatory dispute; the total demand of Rs 15.6 crore is immaterial relative to the company's annual revenue and market capitalization. No immediate portfolio action is required.

Shree Cement Commissions 3.65 MTPA Clinker Capacity in Karnataka

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 24 Feb 2026, 01:10 PM

Shree Cement Limited has successfully commissioned a new clinkerisation section with a capacity of 3.65 MTPA at its integrated plant in Kodla, Karnataka. This expansion significantly boosts the total clinker capacity at the Kodla site to 7.15 MTPA. The move is part of the company's strategic growth plan to strengthen its manufacturing footprint in the Southern Indian market. This operational milestone is expected to support future cement production volumes and improve supply chain efficiency in the region.

Commissioned 3.65 MTPA clinkerisation capacity at Kodla, Kalaburagi District, Karnataka
Total clinker capacity at the Kodla facility has now reached 7.15 MTPA
The unit is part of a larger Integrated Cement Plant project
Strengthens the company's market position and production capabilities in South India

💡 Investors should view this as a positive development for long-term volume growth and regional market share. Monitor the company's upcoming quarterly results for updates on the utilization levels of this new capacity.

Shree Cement Q3 FY26: Focus on Value Narrows Price Gap; RMC Expansion to 45 Plants by Sept 2026

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 12 Feb 2026, 07:56 PM

Shree Cement is successfully executing a 'value over volume' strategy, narrowing its price gap with competitors from INR 30 to INR 15 per bag. The company reported sales volumes of 8.7 million tons for Q3 FY26 and expects to reach 9-9.5 million tons in Q4 FY26 as demand picks up. Management highlighted industry-leading cost efficiency with fuel costs at 1.56 per kilocalorie and a high renewable energy mix of 61%. The company is also aggressively scaling its RMC business, targeting 45 plants by September 2026 with an allocated capex of INR 500 crores.

Narrowed price gap with market leader UltraTech from INR 30/bag to INR 15/bag through disciplined pricing.
Sales volume stood at 8.7 million tons in Q3 FY26, with a projected 9-9.5 million tons for the upcoming quarter.
Renewable energy share reached 61%, helping maintain the lowest fuel cost in the industry at 1.56 per kilocalorie.
RMC business generated INR 71 crore revenue in Q3; plant count to increase from 19 to 45 by September 2026.
Maintained long-term capacity target of 80 million tons by FY29, supported by a 7.5-8% expected industry growth rate.

💡 Investors should view the improvement in realizations and cost leadership as strong indicators of margin resilience. Monitor the successful ramp-up of the RMC business and the commissioning of the Kodla unit as near-term growth catalysts.

Shree Cement Releases Audio Recording of Q3 FY26 Earnings Conference Call

🟡 NEUTRAL ⭐ 3/10

EARNINGS 📅 06 Feb 2026, 08:42 PM

Shree Cement Limited has informed the exchanges that the audio recording of its earnings conference call, held on February 6, 2026, is now available for public access. The call pertained to the company's financial performance for the quarter ended December 31, 2025 (Q3 FY26). This disclosure is part of the company's routine compliance under Regulation 30 of SEBI (LODR) Regulations, 2015. The recording provides transparency regarding management's discussion on the latest quarterly results and future outlook.

Earnings conference call for Q3 FY26 was conducted on February 6, 2026.
Audio recording has been uploaded to the company's official website for investor access.
Compliance filing made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The recording covers management commentary on the financial results for the period ending December 31, 2025.

💡 Investors should access the recording to understand management's perspective on volume growth, pricing power, and cost pressures in the cement industry. No immediate trading action is required based on this administrative update.

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💰 Financial Performance

Revenue Growth by Segment

Consolidated operating income moderated by around 6% YoY to INR 19,283 Cr in fiscal 2025, primarily due to industry-wide subdued cement realisations. Total volume growth (cement plus clinker) was reported at 4.6%-4.7% for the recent quarter, with cement-only volume growing at 6.8%. Ready Mix Concrete (RMC) business is being scaled with new plants planned for FY26.

Geographic Revenue Split

The company maintains a strong market position in Northern India (core market) with an increasing presence in Eastern and Southern regions. It also operates in the UAE through its subsidiary Union Cement Company PJSC, which is currently undergoing a AED 110 million expansion to serve the Middle East market.

Profitability Margins

EBITDA per tonne moderated to INR 986 in fiscal 2025 from INR 1,155 in fiscal 2024 (a 14.6% decline). However, the company achieved a 9% Net Sales Realisation (NSR) growth in Q2 FY26, outperforming the industry average of 5%-7%. Operating margins are expected to improve to over INR 1,050 per tonne from fiscal 2026 onwards.

EBITDA Margin

Consolidated EBITDA per tonne stood at INR 986 in FY25. The company targets an improvement to INR 1,300-1,400 per tonne in the long term, driven by a focus on premium products and internal efficiency measures such as increased green power usage and logistics optimization.

Capital Expenditure

Planned capital expenditure of INR 10,000-12,000 Cr is scheduled for fiscals 2026-2028 to reach a capacity of 80 MTPA. Additionally, a capex of approximately AED 110 million (fully funded by local cash) is allocated for UAE operations expansion.

Credit Rating & Borrowing

Maintains 'CRISIL AAA/Stable/CRISIL A1+' and 'CARE AAA; Stable / CARE A1+' ratings. The company operates with a highly deleveraged balance sheet, with a gearing ratio of 0.04 times as of March 31, 2025, and total debt of only INR 817 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include clinker, slag (for special products), and multiple fuel types for power generation. Specific cost percentages for each material were not disclosed, but input cost volatility is cited as a primary risk factor.

Import Sources

Sourced domestically across India and locally within the UAE for Middle East operations. Specific state-level or country-level import splits are not disclosed.

Capacity Expansion

Current installed domestic cement capacity is 62.8 MTPA as of April 2025, following the commissioning of units in Etah (UP) and Baloda Bazar (Chhattisgarh). The company has a roadmap to reach 80 MTPA by FY28.

Raw Material Costs

Susceptible to volatility in input costs. The company mitigates this through internal efficiency measures and the ability to operate plants with multiple fuel types to optimize costs based on market tariffs.

Manufacturing Efficiency

Efficiency is driven by high capacity utilization (projected volume of 37-38 million tons for the current year) and the use of waste heat recovery systems and green energy.

Logistics & Distribution

Distribution costs are being optimized through the expansion of railway sidings and the assumption of a new role by the Chief Logistics Officer to streamline the supply chain.

📈 Strategic Growth

Expected Growth Rate

4.70%

Growth Strategy

Growth will be achieved by expanding capacity from 62.8 MTPA to 80 MTPA by FY28, increasing the share of premium products (which grew 9% in price recently), and scaling the RMC business with a new 'playbook' of plants by FY26. The company is also expanding in the UAE to capture slag and oil well cement markets.

Products & Services

Cement bags (base and premium), Clinker, Ready Mix Concrete (RMC), Slag cement, and Oil Well cement.

Brand Portfolio

Shree Cement, and various unnamed 'Premium Products' positioned at higher price points than base brands.

New Products/Services

Expansion into special products like slag and oil well cement in the Middle East and the rollout of a standardized RMC plant playbook by FY26.

Market Expansion

Targeting increased presence in Southern and Eastern India, alongside a AED 110 million capacity expansion in the UAE market.

Market Share & Ranking

Established market leader in Northern India; currently diversifying to maintain and grow capacity share against large competitor announcements.

🌍 External Factors

Industry Trends

The industry is seeing a trend toward consolidation and massive capacity announcements. Shree Cement is positioning itself by accelerating its 80 MTPA roadmap and focusing on premiumization and green energy to maintain a superior EBITDA per tonne.

Competitive Landscape

Facing significant capacity expansion announcements from competitors, particularly in the core Northern India market.

Competitive Moat

Moat is built on cost leadership (cost-efficient operations), a strong brand in North India, and a robust financial profile (Net Cash). Sustainability is supported by a high share of green power and internal cash-funded expansions.

Macro Economic Sensitivity

Highly sensitive to cyclicality in the cement industry and infrastructure spending. Realizations are sensitive to industry-wide demand-supply dynamics.

Consumer Behavior

Increasing demand for premium, higher-priced cement products and specialized solutions like RMC and oil well cement.

Geopolitical Risks

Exposure to Middle East markets through UAE operations; however, management remains positive on UAE and Middle East demand for special products.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental and pollution norms for cement manufacturing. Compliance is managed through investments in green energy and internal efficiency measures.

Environmental Compliance

Strong focus on ESG; commitment to green energy and internal efficiency. NSE Sustainability Ratings & Analytics Ltd recently provided an ESG rating for the company.

Taxation Policy Impact

The company received a demand notice of INR 588.65 Cr in May 2025 following IT department surveys in fiscal 2024. The company is expected to take legal remedial action.

Legal Contingencies

Pending demand of INR 588.65 Cr from the Income Tax department. Management is pursuing legal remedies against this notice.

⚠️ Risk Analysis

Key Uncertainties

Volatility in cement realizations and input costs (fuel/power) are the primary uncertainties. A sustained decline in operating profitability or debt-funded acquisitions exceeding 1.0x Net Debt/EBITDA are key downward rating factors.