Shree Cement Ltd (NSE:SHREECEM)

Q1 2027 Shree Cement Ltd Earnings Call Transcript

Jul 31, 2026 / 11:30 AM GMT

Release Date Price: ₹26055 (-1.51%)

Transcript

Key Points

Positve

Shree Cement Ltd (BOM:500387) reported a strong 17% volume growth in its Indian operations for Q1 FY27, driven by robust demand and successful market penetration in the south and west regions.
The company's consolidated revenue for the quarter reached INR 114.5 billion, up from INR 99.6 billion in the same period last year, reflecting the growing contribution from overseas and subsidiary operations.
Management anticipates that fuel costs, which peaked at INR 1.95 per kilocalorie in Q1 due to the Middle East conflict, have stabilized and should decline in Q2 as contracted pet coke supplies resume.
The company is actively pursuing cost-reduction initiatives, including the deployment of 100 electric commercial vehicles this year and increasing the renewable energy share in its total energy mix to 65%.
Shree Cement Ltd (BOM:500387) maintains a strong balance sheet with net cash increasing to INR 8,348 crore as of June 2026, providing ample liquidity for future growth investments.
The company is progressing with its strategic expansion in the Northeast, having secured necessary approvals, and is building infrastructure to support a potential 4-5 million ton capacity in the region.

Negative

Shree Cement Ltd (BOM:500387) experienced a significant decline in consolidated EBITDA to INR 1,272 crore in Q1 FY27, down from INR 1,339 crore in the previous year, due to the adverse impact of the Middle East war on fuel and raw material costs.
The forced shift from pet coke to higher-cost coal, due to supply disruptions, increased the company's fuel cost to INR 1.95 per kilocalorie, negatively impacting production costs.
The unavailability of natural gypsum forced the company to procure more expensive alternatives, further elevating raw material costs and compressing margins.
Lower coal quality reduced the clinker conversion factor to 1.50, limiting the company's ability to produce blended cement and forcing a shift toward lower-margin non-trade sales.
The company's trade sales mix fell to 52% in Q1, down from 71% in the year-ago quarter, as operational constraints led to a higher proportion of non-trade sales, which typically yield lower realizations.
Consolidated volumes declined sequentially to 11.45 million tons in Q1 FY27 from 11.94 million tons in Q4 FY26, primarily due to minimal sales in the UAE during April and May because of the regional conflict.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SHCM.NS - Shree Cement Ltd
Q1 2027 Shree Cement Ltd Earnings Call
Jul 31, 2026 / 11:30AM GMT

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Presentation
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Ladies and gentlemen.

Good day and welcome to Shi Cement Limited Q1F527 conference call hosted by ICICI Securities Limited.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call?

Please signal an operator by pressing 100 on your touchstone phone.

That this conference is being recorded.

I now hand the conference over to Mr.

Naveen Sahio from ICICI Securities.

Thank you and over to you, sir.

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