PAT stood at Rs 277 crore for the quarter ended September 30, 2025, compared with Rs 93 crore in the same period last year. The sharp improvement was driven by higher volumes, a premiumisation strategy, and enhanced operational efficiency.
Revenue for the quarter rose 15% YoY to Rs 4,303 crore, supported by strong demand, better pricing, and a strategic shift toward value over volume. Sequentially, revenue also improved, reflecting steady operational momentum despite the seasonally weaker monsoon quarter.
Operating profit (EBITDA) stood at Rs 851 crore, up 44% YoY, aided by disciplined cost control and improved capacity utilisation. The company said the strong performance underscores its resilience and focus on long-term value creation amid evolving market dynamics.
Its overseas business also contributed positively. In the UAE, revenue rose 50% YoY to AED 231.80 million, while operational EBITDA surged 158% YoY to AED 52.53 million. Total sales volume in the region climbed 34% to 13.19 lakh tonnes.
On the expansion front, Shree Cement commissioned a 3.65 MTPA clinkerisation unit at its integrated plant in Jaitaran, Rajasthan, during the quarter. A 3.0 MTPA cement mill at the same site is expected to be commissioned soon, while the Kodla, Karnataka integrated plant (3.0 MTPA capacity) is in its final phase of completion.The company said it remains committed to its goal of reaching over 80 MTPA capacity in the coming years.
Brokerage Views on Shree Cement After Q2 Results
Citi: Buy | Target price: Rs 33,000-35,500
Citi has maintained its “Buy” rating on Shree Cement with a target price range of Rs 33,000–35,500.
The brokerage noted that Q2 EBITDA was around 14% below estimates, primarily due to higher input costs. EBITDA per tonne fell to Rs 1,105, down from Rs 1,375 in Q1. Realisations dropped 2% sequentially, while costs increased 4%, and volumes contracted by roughly 12% QoQ.
On the positive side, the contribution of premium products rose to 21% of the mix from 18% in the previous quarter. Despite softer operational metrics, Citi remains bullish on the stock, citing resilient margins and attractive valuations, with the company trading at an EV per tonne of $160.
Goldman Sachs: Neutral | Target price: Rs 31,250
Goldman Sachs has reiterated its “Neutral” rating on Shree Cement with a target price of Rs 31,250.
The brokerage said Q2FY26 revenue and EBITDA were broadly in line with its estimates, missing projections by only 1% and 4%, respectively. EBITDA per tonne stood at Rs 1,077, including a Rs 30/t one-time power sub-station expense.
Cement and clinker volumes grew 4% YoY, with cement volumes up 6.8% YoY, marking a recovery after several quarters of market share erosion. While realisations slipped 2% QoQ, the premium product mix improved to 21%, versus 15% a year ago — a trend Goldman expects to remain stable.
The company reaffirmed its 80 MTPA capacity target, though the pace of commissioning may align with market demand. Goldman also highlighted strong momentum in UAE operations, where revenue surged 40% YoY to Rs 458 crore, and EBITDA reached Rs 123 crore, marking a second straight quarter above Rs 100 crore.
Looking ahead, Goldman has cut its FY26 and FY27 volume growth estimates to 5% and 14%, respectively, and trimmed EBITDA forecasts by 2–5%, though it raised the valuation multiple to 18x, supported by the UAE outperformance.
Nuvama: Hold | Target price: Rs 31,120
Nuvama has maintained a “Hold” rating on Shree Cement with a revised target price of Rs 31,120 (earlier Rs 30,873).
The brokerage noted that Shree Cement prioritised realisation over volume growth in Q2FY26, with volumes rising 4% YoY, but blended realisation slipping 1.5% QoQ.
EBITDA stood at Rs 851 crore, around 5% above expectations, with EBITDA per tonne at Rs 1,078.
Looking forward, Nuvama expects FY26 volumes at 37–38 million tonnes (mt), with cement capacity likely reaching 69 mt by FY26-end, and expanding to 72–75 mt by FY28. It added that ongoing capex initiatives will support growth and cost efficiency, leading to a +2% upward revision in its FY26E EBITDA estimate.
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