Shree Cement Q4 FY26 profit falls 8.3% to ₹526 crore on margin squeeze
Synopsis
Shree Cement's Q4 FY26 results present a tale of two metrics: revenue surged 10.3% on strong volumes, but net profit fell 8.3% and EBITDA margins compressed sharply to 22.6% from 25.8%. With the Kodla plant now online and premium product mix improving, the real test is whether FY27 can finally convert volume momentum into margin recovery.
Key Takeaways
Shree Cement reported Q4 FY26 net profit of ₹526 crore , down 8.3% year-on-year from ₹574 crore .
Revenue from operations rose 10.3% to ₹6,101 crore , driven by 11% volume growth in cement sales.
EBITDA margin contracted to 22.6% from 25.8% a year ago, reflecting cost pressures.
Total dividend for FY26 raised to ₹150 per share , a 36% increase over FY25's ₹110 per share .
New Kodla, Karnataka plant adds 3.65 MTPA clinker and 3.50 MTPA cement capacity, taking total India capacity to 69.3 MTPA .
RMC business to expand to 36 plants by start of FY27 .
Shree Cement reported an 8.3% year-on-year decline in consolidated net profit for the fourth quarter of FY26, even as revenues climbed on the back of robust volume growth. The company posted a net profit of ₹526 crore for the quarter ended 31 March 2026, down from ₹574 crore in Q4 FY25, according to its stock exchange filing.
Revenue Growth Masks Margin Pressure
Revenue from operations rose 10.3% year-on-year to ₹6,101 crore, compared with ₹5,532 crore a year ago, supported by strong cement volumes. However, operational profitability told a different story. EBITDA declined 3% to ₹1,384 crore from ₹1,429 crore in the year-ago period, while the EBITDA margin contracted sharply to 22.6% from 25.8% — a compression of over 320 basis points — reflecting sustained cost pressures across the cement sector.
Volume Growth Remains a Bright Spot
Cement sales stood at 10.56 million tonnes in Q4, up 11% year-on-year and 24.5% sequentially — one of the stronger volume performances in the industry this quarter. Total volumes, including clinker, rose 9.4% annually to 10.77 million tonnes and increased 23.2% quarter-on-quarter. Notably, the company improved its product mix, with premium products contributing 22% of total trade volume, up from 16% in the same quarter last year — a shift that could support realisations going forward.
Dividend Raised 36% for FY26
The board recommended a final dividend of ₹70 per equity share (face value ₹10) for FY26, subject to shareholder approval. This takes the total dividend for the year to ₹150 per share, marking a 36% increase over the ₹110 per share payout in FY25 — a signal of confidence in the company's cash generation even as near-term margins remain under pressure.
Capacity Expansion Accelerates
During the quarter, Shree Cement commissioned its integrated project at Kodla, Karnataka, adding 3.65 MTPA clinker capacity and 3.50 MTPA cement capacity. This has taken the company's total installed cement production capacity in India to 69.3 MTPA, reinforcing its position as the country's third-largest cement producer. The company also expanded its ready-mix concrete (RMC) business, ending FY26 with 26 operational plants. It commissioned 10 new commercial RMC plants in March 2026, currently under commissioning, and expects the total count to reach 36 plants at the start of FY27.
Outlook
The margin compression seen in Q4 mirrors a sector-wide trend, with cement makers facing elevated input and energy costs even as realisations remain subdued amid competitive pricing. With the Kodla capacity now online and premium product volumes rising, Shree Cement's ability to convert volume gains into profitability improvement will be the key metric to watch in FY27.
Point of View
But it is not yet translating into earnings quality. A 320-basis-point EBITDA margin compression in a quarter when revenues grew 10% is a red flag — it suggests pricing power remains weak and cost pass-through is incomplete. The 36% dividend hike looks generous but may also reflect a lack of near-term reinvestment urgency. The Kodla commissioning is strategically sound, yet adding capacity into a margin-compressed environment carries execution risk. The premium product mix improvement — from 16% to 22% of trade volumes — is the one structural positive that mainstream coverage has underplayed; if sustained, it is the most credible path to margin recovery in FY27.
NationPress
10 Aug 2026
Frequently Asked Questions
What was Shree Cement's net profit in Q4 FY26?
Shree Cement reported a consolidated net profit of ₹526 crore in Q4 FY26, an 8.3% decline year-on-year from ₹574 crore in Q4 FY25. The drop came despite a 10.3% rise in revenue, as cost pressures weighed on margins.
Why did Shree Cement's EBITDA margin fall in Q4 FY26?
The EBITDA margin contracted to 22.6% from 25.8% in the year-ago quarter, a compression of over 320 basis points, due to sustained cost pressures across the cement sector. EBITDA in absolute terms also declined 3% to ₹1,384 crore.
What dividend has Shree Cement announced for FY26?
The board recommended a final dividend of ₹70 per equity share for FY26, taking the full-year total to ₹150 per share. This represents a 36% increase over the ₹110 per share paid in FY25, subject to shareholder approval.
What is Shree Cement's total cement production capacity after the Kodla expansion?
Following the commissioning of its integrated project at Kodla, Karnataka — which added 3.65 MTPA clinker and 3.50 MTPA cement capacity — Shree Cement's total installed cement production capacity in India stands at 69.3 MTPA, making it the country's third-largest cement producer.
How did Shree Cement's cement volumes perform in Q4 FY26?
Cement sales reached 10.56 million tonnes in Q4 FY26, up 11% year-on-year and 24.5% sequentially. Total volumes including clinker rose 9.4% annually to 10.77 million tonnes, reflecting strong demand momentum.
