Shree Cement Ltd announced on Friday a 17.48% decline in consolidated net profit for the June quarter of fiscal year 27. This decrease was attributed to increased raw material costs. According to regulatory filings, the company, promoted by the Bangur family, reported a net profit of 643.66 crore rupees for the period from April to June last year.
The country's third-largest cement group demonstrated an 18% growth in operating revenue for the June quarter of FY27, reaching 6233.13 crore rupees, compared to 5280.88 crore rupees in the same quarter of the previous fiscal year.
The company's operating profit decreased due to rising fuel and raw material expenses caused by the Middle East crisis, as stated in the earnings report. Cement sales volume increased by 17% year-on-year, totaling 10.23 million tonnes (MT) in Q1 FY27, compared to 8.74 MT in Q1 FY26. Total sales volume, including clinker, grew by 17.2% to 10.49 MT from 8.95 MT.
Furthermore, the Ready Mix Concrete (RMC) business showed significant growth during the quarter: volumes increased by 156% year-on-year, reaching 2.36 lakh cubic meters compared to 0.92 lakh cubic meters in the corresponding quarter last year, according to the earnings report.
The company's total expenses rose by 22.7% to 5703.75 crore rupees in the June quarter of FY27. According to SCL, premium product sales increased to 23.3% of total turnover compared to 17.7% in the same quarter last year. Meanwhile, total revenue grew by 16.83% to 6444.84 crore rupees in the reporting quarter.
Commenting on the results, Shree Cement Managing Director, Niraj Ahoury, noted that the quarter was characterized by strong demand momentum, confident volume growth, and continuous progress in the premiumization strategy implementation. The company continued to focus on increasing sales volumes and value proposition, which was supported by the expansion of the RMC business.
Regarding capital expenditure, SCL reported that work on the planned new integrated plant in Meghalaya is progressing satisfactorily. Necessary permits have been obtained, and orders have been placed for major plant equipment. The project is expected to be completed by the quarter ending March 31, 2028.
Concerning growth forecasts, SCL maintains a positive outlook, supported by consumption growth, government infrastructure spending, stable inflation, and favorable policy measures. However, the company warned that geopolitical tensions in the Middle East and the possibility of a moderate monsoon could create short-term challenges to growth rates.
On Friday, Shree Cement Ltd shares closed at BSE at ₹26146 per share, declining by 1.12%.
