SHREECEM
Large CapSHREE CEMENT LIMITED
Infra
Shree Cement Limited is an Indian cement manufacturer. The company has recently focused on a 'value over volume' strategy to improve realizations and narrow the price gap with competitors. It is expanding its Ready Mix Concrete (RMC) plant network and has a significant renewable energy portfolio, aiming for logistical cost optimization and increased capacity utilization.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -8% YoY · margin compression · Rev +10% YoY · +27% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,101 Cr | +10.3% | +27.1% |
| EBITDA | ₹1,384 Cr | -3.1% | +46.1% |
| Operating margin | 23.0% | -300 bps | +300 bps |
| PAT | ₹528 Cr | -8.2% | +97.0% |
| PAT margin | 8.7% | -174 bps | +307 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q3 FY26 results reflect strategic volume sacrifice for value, narrowing price gap with peers. Management expects demand pickup in Q4 FY26 and targets higher utilization through RMC expansion, while maintaining a strong balance sheet.
Management deliberately constrained volumes to improve realizations and narrow the price gap with competitors, impacting capacity utilization (mid-50s). While the price gap has reduced from INR 30/bag to INR 15/bag, the trade-off has suppressed overall volume growth and fixed cost recovery. The focus now shifts to improving utilization through RMC expansion and expected demand growth.
Sales by Region (Q3 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
RMC Plant Expansion
The company plans to increase RMC plants from 19 to 45 within the next 6-8 months (by September '26), which will use captive cement and improve capacity utilization.
Value Over Volume Strategy
Deliberate focus on value over volume has narrowed the price gap with competitors from INR 30/bag to INR 15/bag, aiming for higher realizations.
Expected Industry Demand Growth
Management expects cement demand to grow around 7.5-8% next year (FY27), aligning with RBI's 7.4% GDP growth projection for FY27.
Renewable Energy Portfolio
Highest renewable energy portfolio at 61%, with plans to add 2-3% more, including Waste Heat Recovery Systems at new units, to optimize energy costs.
Kodla Unit Commissioning
The new Kodla unit is due to be commissioned by March '26, which will include a Waste Heat Recovery System.
Total Capacity by March '26
The company expects to reach 72 million tons of capacity by March '26.
80 MT Target by FY29
The target of 80 million tons by FY29 may get deferred, depending on how demand pans out in FY27, as the company prioritizes productive capital.
Improved Price Realization
The price gap between the company's sales price and competitors like UltraTech has narrowed from INR 30/bag to INR 15/bag due to strategic volume restraint.
Q4 FY26 Demand Momentum
Demand picked up in December '25 and is expected to continue in February and March '26 due to central government budget spending deadlines.
Favorable Macro Outlook
RBI governor has pointed to a 7.4% GDP growth rate for FY27, with cement generally growing at 1x to 1.1x national GDP.
Low Demand in Prior Months
Demand was low in October and November '25, which impacted volumes.
Balancing Volume and Price
The company faces a calculated equilibrium game between pushing volumes and maintaining pricing discipline, as both don't go hand-in-hand.
International Fuel Price Volatility
Per kilocalorie cost is a function of international coal and pet coke prices, which are beyond the company's control.
Capacity Utilization & Expansion
Demand uncertainty could impact capacity utilization and defer future expansion plans, as the company aims for 70% utilization before significant new capacity additions.
MCA Investigation
A routine inquiry under section 210 by MCA is ongoing; information has been shared, but no report has been issued.
Premium Cement Definition
The lack of a standard definition for 'premium cement' means the 'premium' aspect can be subjective, potentially diluting its value proposition if all players claim it.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparisons are relevant for assessing realization trends and the impact of the 'value over volume' strategy. QoQ comparisons are crucial for understanding sequential volume momentum, cost trends (e.g., fuel), and the ramp-up of new initiatives like RMC plants.
Sales Volume (Q3 FY26)
Q3 FY26 sales volume was 8.7 million tons. November sales were 2.7 million tons, December sales were 3.3 million tons. Management expects 9-9.5 million tons in Q4 FY26.
Realization (Dec '25)
December '25 realization was INR 4,652 per ton, up from INR 4,554 per ton in December '24.
Capacity Utilization
Operating rates are in the mid-50s. Management is not happy with current capacity utilization and is taking steps to correct it.
Power & Fuel Cost
Per kilocalorie cost is 1.56, lowest in the industry. Renewable energy contributes almost 61% of the power portfolio.
Strategic Focus
The company will continue to concentrate on value over volumes, aiming to increase profits primarily through top-line growth and improved realizations.
Q4 FY26 Volume Outlook
Management is confident of achieving 9-9.5 million tons in Q4 FY26, driven by expected demand from government spending.
Capex Plans
FY26 capex is expected to be INR 2000 crores (INR 1500 cr done, INR 500 cr in Q4). FY27 capex visibility is INR 500 crores for RMC plants and railway sidings, with further capacity additions dependent on demand.
Dividend Payout
The dividend payout for FY26 is expected to be better than FY25, reflecting the company's strong financial position with INR 6000 crores of free cash and net debt-free status.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Capacity Utilization | Mid-50s | Improvement towards 70% utilization, driven by RMC expansion and demand pickup. |
| RMC Plant Expansion | 19 plants | Increase to 45 plants by September '26 and their contribution to captive cement consumption and volumes. |
| Price Delta vs. UltraTech | INR 15/bag | Further reduction or maintenance of this gap, while also growing volumes. |
| Q4 FY26 Sales Volume | Expected 9-9.5 MT | Achievement of the guided volume range, indicating successful balancing of value and volume strategy. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41NeutralSMA20 -4.7% / mo · near 52W low
Technical chart
SHREECEMdaily · 3Y-13.4%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 30.
- SMA20 falling (~1.3% over last month) — short-term momentum negative.
- RSI(14) at 30 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -797.2%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 85th percentile of the scored universe and 89th percentile within Infra. Main check: financial discipline is weak at 52/100.
High Trust Lite: Promoter holding is 62.6%. Key concern: ROE is low at 7.8%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Infra: 89th pctile, median 65 · Large: 66th pctile, median 74
31 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 62.6%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.1%.
- ▸9 years of positive FCF.
Trust risks
- ▸ROE is low at 7.8%.
- ▸3 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 48.70
- P/B
- 3.65
- EV/EBITDA
- 11.68
- Market Cap
- 84916.00Cr
Profitability
- ROE
- 7.78%
- ROCE
- 10.50%
- ROA
- 5.56%
- Dividend Y
- 0.47%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- -5.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- 11.00%
Balance Sheet
- Debt/Equity
- 0.08
- Interest Coverage
- 21.88×
- Altman Z
- 8.45
- Book Value
- 6449.00
Cash Flow
- FCF Yield
- 0.08%
- FCF Positive Y
- 9/5
- OCF
- 3794.00 Cr
- EPS TTM
- 483.24
Shareholding
- Promoter Hold
- 62.56%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 10%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Infra — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.