Shree Cement Ltd.Consol EBITDA/t ₹1,111 as Fuel Shift Hits

Shree Cement reported Q1 FY27 consolidated sales volume of 114.5 lakh tons against 99.6 lakh tons a year earlier, but consolidated operational EBITDA excluding other income fell to ₹1,272 Cr from ₹1,333 Cr and EBITDA per ton to ₹1,111 from ₹1,339.

Management blamed the Middle East war: contracted petcoke did not arrive, so petcoke fell from 54% to 9% of fuel and coal rose to 81%, fuel cost reached about ₹1.95 per kcal, and Omani gypsum was unavailable. Poorer coal cut the clinker conversion factor to 1.50 from 1.58 and pushed sales into non-trade, with trade share at 62% against 71%. Indian operations sold about 10.4 to 10.5 million tons, up more than 15%, capacity utilisation was 62%, and UAE had almost no sales in April and May.

Management called Q1 abnormal, said fuel cost has almost peaked, held its 40 million ton FY27 guide and expects healthier profit from Q2. It will now report consolidated numbers, plans about ₹1,500 Cr of India capex, and expects its Northeast plant by Q4 FY28.