SHREE CEMENT LIMITED Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
Shree Cement Q3 FY26: Revenue ₹4,800.52 Cr (vs ₹4,572.68 Cr YoY), PAT ₹267.65 Cr (vs ₹193.72 Cr YoY)
In Q3 FY26 (quarter ended 31.12.2025) consolidated revenue from operations rose to ₹4,800.52 Cr, up from ₹4,572.68 Cr in Q3 FY25, while consolidated profit after tax increased to ₹267.65 Cr versus ₹193.72 Cr YoY. EBITDA for the quarter was ₹1,092.83 Cr, supported by operating scale despite elevated power, fuel and freight costs. The company recognised an additional employee benefit obligation of ₹55.99 Cr in the quarter due to new Labour Codes and commissioned the integrated Jaitaran plant (3.65 MTPA clinker / 3.0 MTPA cement) during the quarter. Balance-sheet metrics remain strong with...Revenue from Operations (Q3 FY26)
₹4,800.52 Crvs ₹4,572.68 Cr in Q3 FY25
Profit After Tax (Consolidated, Q3 FY26)
₹267.65 Crvs ₹193.72 Cr in Q3 FY25
EBITDA (Q3 FY26)
₹1,092.83 Crvs ₹1,075.58 Cr in Q3 FY25
Profit Before Tax (Q3 FY26)
₹323.96 Crvs ₹224.71 Cr in Q3 FY25
Net Worth (Consolidated, Q3 FY26)
₹22,503.76 Crvs ₹21,139.95 Cr in Q3 FY25
EPS Basic & Diluted (Q3 FY26)
₹73.92 per sharevs ₹53.61 per share in Q3 FY25
Power & Fuel Expense (Q3 FY26)
₹1,122.48 Crvs ₹1,037.87 Cr in Q3 FY25
Freight & Forwarding Expense (Q3 FY26)
₹1,113.62 Crvs ₹1,049.17 Cr in Q3 FY25
Key Highlights
9
Consolidated revenue increased to ₹4,800.52 Cr in Q3 FY26 driven by higher volumes and pricing vs ₹4,572.68 Cr in Q3 FY25.
Commissioning of the integrated Jaitaran plant (3.65 MTPA clinker and 3.0 MTPA cement) was completed during Q3 FY26, adding incremental capacity to the network.
Employee benefit expenses in Q3 FY26 include a one-off recognition of ₹55.99 Cr due to compliance with new Labour Codes and actuarial assessment.
Power & fuel expense rose to ₹1,122.48 Cr in Q3 FY26, reflecting energy cost pressure compared to ₹1,037.87 Cr in Q3 FY25 and pressuring gross margins.
Freight & forwarding costs were material at ₹1,113.62 Cr in Q3 FY26, up from ₹1,049.17 Cr in Q3 FY25, indicating logistics cost headwinds.
EBITDA of ₹1,092.83 Cr in Q3 FY26 was sustained despite higher operating costs, with depreciation at ₹709.83 Cr supporting PBT of ₹323.96 Cr.
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Key Highlights
9
Consolidated revenue increased to ₹4,800.52 Cr in Q3 FY26 driven by higher volumes and pricing vs ₹4,572.68 Cr in Q3 FY25.
Commissioning of the integrated Jaitaran plant (3.65 MTPA clinker and 3.0 MTPA cement) was completed during Q3 FY26, adding incremental capacity to the network.
Employee benefit expenses in Q3 FY26 include a one-off recognition of ₹55.99 Cr due to compliance with new Labour Codes and actuarial assessment.
Power & fuel expense rose to ₹1,122.48 Cr in Q3 FY26, reflecting energy cost pressure compared to ₹1,037.87 Cr in Q3 FY25 and pressuring gross margins.
Freight & forwarding costs were material at ₹1,113.62 Cr in Q3 FY26, up from ₹1,049.17 Cr in Q3 FY25, indicating logistics cost headwinds.
EBITDA of ₹1,092.83 Cr in Q3 FY26 was sustained despite higher operating costs, with depreciation at ₹709.83 Cr supporting PBT of ₹323.96 Cr.
Other comprehensive income contributed ₹87.43 Cr in Q3 FY26, supporting total comprehensive income of ₹355.08 Cr for the quarter.
Three subsidiaries reported interim losses (totaling Rs.84.36 Cr loss for the quarter) as disclosed, which could affect consolidated volatility going forward.
Consolidated deferred tax credit of ₹17.88 Cr in Q3 FY26 reduced the current tax charge and supported PAT conversion from PBT.
Guidance & Outlook
4
Commissioning of Jaitaran plant in Q3 FY26 is expected to increase cement and clinker supply from the company’s network in subsequent quarters.
Management flagged implementation of Labour Codes (recognized as ₹55.99 Cr in Q3 FY26) which may create ongoing employee-benefit accounting changes until rules are finalised.
Operating leverage from higher volumes in Q3 FY26 supported margins despite cost inflation, implying near-term focus on cost control across power and freight.
With net worth at ₹22,503.76 Cr and low leverage metrics reported, the company is positioned to absorb incremental capital expenditure tied to commissioned capacity.
Risks & Concerns
5
Elevated power & fuel expense of ₹1,122.48 Cr in Q3 FY26 versus ₹1,037.87 Cr in Q3 FY25 poses a recurring margin risk if energy prices remain high.
High freight & forwarding costs at ₹1,113.62 Cr in Q3 FY26 compared with ₹1,049.17 Cr in Q3 FY25 increase unit logistics cost and could pressure net margins.
Recognition of additional employee benefit obligation of ₹55.99 Cr due to new Labour Codes introduces accounting and cash-cost uncertainty until detailed rules are notified.
Interim losses reported by three subsidiaries (aggregate loss Rs.84.36 Cr for the quarter) may increase consolidated earnings volatility if those businesses do not recover.
Depreciation is significant at ₹709.83 Cr in Q3 FY26, which constrains PBT conversion from EBITDA even as operating EBITDA remains strong.
AI-generated analysis. May contain inaccuracies — verify against original sources.