Shree Cement Preview: Q4 volumes to rise on new capacity; realisation to drop on price decline

despite a decrease in cement prices, particularly in the East and North markets, the volume growth has been sufficient to sustain a positive revenue trajectory.

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26 Aug, 2025 12:21

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Shree Cement is expected to report an increase in Q4 revenue and profit, driven by the commissioning of new capacity and a consequent rise in sales volumes, alongside lower operational costs.

Also read: Is the cement sector overvalued? Here's what market experts say

The cement maker’s fiscal fourth quarter net profit is expected to rise 7.8 percent year-on-year to Rs 589 crore, according to a Moneycontrol poll of five brokerage estimates. Revenue is likely to rise 3.7 percent year-on-year to Rs 4,964 crore.

New capacity helps Shree Cement sales

The commissioning of new manufacturing capacity has enabled Shree Cement to boost its production volumes, which analysts from Axis Securities estimate will rise by 5-7 percent year-over-year. This increase in volume is a primary contributor to the revenue growth.

Also read: Neutral Shree Cement; target of Rs 27,700: Motilal Oswal

Furthermore, despite a decrease in cement prices, particularly in the East and North markets, the volume growth has been sufficient to sustain a positive revenue trajectory.

On the profitability front, the easing of cost pressures has played a crucial role. Lower costs, combined with higher sales, are expected to enhance the company's EBITDA margins, contributing to the expected increase in profit after tax (PAT). Axis Securities notes that these reduced costs and increased operational efficiency are likely to boost the company's EBITDA by 26 percent year-over-year to Rs 1,133 crore.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.