Q2 2026 Shree Cement Ltd Earnings Call Transcript
Key Points
- The reduction of GST rate on cement from 28% to 18% is expected to boost long-term cement demand.
- Shree Cement Ltd (BOM:500387) reported a 6.8% year-over-year increase in cement sales volume.
- Realization per tonne increased significantly from INR4,451 to INR4,840, driven by a rise in premium product share from 15% to 21%.
- The company's UAE operations achieved their best-ever quarterly performance, with sales up by 34% and EBITDA increasing by 158%.
- Shree Cement Ltd (BOM:500387) has expanded its green power capacity to 612 megawatts and achieved a 63% share of green electricity in total consumption.
- Sequentially, volumes were down by about 12% due to heavy rains in North India during the monsoon season.
- Total EBITDA decreased by about 31% sequentially, with EBITDA per tonne also declining by 20%.
- The company experienced a one-off write-off related to a power connection substation transfer in Andhra Pradesh.
- Despite the GST cut, immediate demand boost is uncertain, with potential short-term labor shortages affecting construction sites.
- The company faces challenges in maintaining stable prices amidst fluctuating demand and competitive pressures in the cement market.
Ladies and gentlemen, good day and welcome to Shree Cement Limited Q2 FY26 earnings conference call. (Operator Instructions) Before we begin, a brief disclaimer.
This conference call may contain certain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. The statements are not the guarantees of the future performance and involves risks and uncertainties that are difficult to predict. I now hand over the conference to Mr.
Navin Sahadeo from ICICI Securities. Thank you, and over to you.
Thank you, Mark. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Q2 FY26 earnings call of Shree Cement Limited. From the management, we have with us Mr. Neeraj Akhoury, Managing Director; Mr. Ashok Bhandari, Senior Adviser; and Mr. Subhash Jajoo, the company's CFO. So without any further ado, I hand over the call to the management for opening comments. Over to you, sir.
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