Shree Cement Ltd.Value-Over-Volume Strategy Narrows Pricing Gap

Shree Cement delivered 8.7 million tons sales volume in Q3 FY26, up 2% year-on-year and 10.1% quarter-on-quarter, while pursuing a deliberate value-over-volume strategy that successfully narrowed the pricing gap with UltraTech from ₹30 to ₹15 per bag.

December 2025 realization reached ₹4,652 per ton, marking 2.2% year-on-year growth. Management displayed cautious optimism, guiding Q4 FY26 volumes at 9 to 9.5 million tons as momentum recovers from November's 2.7 million tons to December's 3.3 million tons monthly run-rate. The company is aggressively expanding its RMC business from 19 to 45 plants by September 2026, generating ₹71 crores revenue with 45% captive cement consumption.

FY27 capex is guided at ₹500 crores, focusing on RMC and logistics rather than new cement capacity, with the 80 million ton capacity target deferred pending demand visibility. Shree maintains industry-leading cost advantages with fuel at ₹1.56 per kilocalorie versus peer ₹1.80, and 61% renewable energy mix. The company remains net debt-free with ₹6,000 crores cash, expecting improved dividend payouts for FY26.