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Shree Cement Reports 16% Q4 Profit Decline Despite Record Sales Volumes

Higher freight and tax costs eroded margins, but the company remains optimistic about FY26 demand recovery and continues its capacity expansion plans.

Overview

  • Shree Cement's Q4 FY25 net profit fell 16% year-on-year to Rs 556 crore, missing analysts’ estimates.
  • Sales volumes reached a record 9.84 million tonnes, driving revenue up 3% to Rs 5,240 crore.
  • Higher freight costs, which rose over 10%, and a 69% increase in tax expenses significantly pressured profitability.
  • The company commissioned two new grinding units during FY25, raising total cement capacity to 62.8 MTPA, with a target of 80 MTPA by FY28.
  • A final dividend of Rs 60 per share has been recommended, as management projects robust demand growth in FY26, driven by infrastructure and real estate recovery.