The shares of Shree Cement jumped nearly 4% on Thursday even after the company reported an 8% drop in consolidated net profit to Rs 526 crore for Q4 FY26, from Rs 574 crore in the year-ago period, with brokerages still remaining bullish on the cement-maker.
The company released its results for the January-March quarter of the financial year 2026 in the post market hours of Wednesday. The shares of the company sharply surged around 4% to trade at Rs 25,945 apiece on NSE in the morning trading hours of Thursday.
While net profit dipped, revenue from operations surged 10% to Rs 6,1010 crore in the January-March quarter of the financial year 2026, from Rs 5,532 crore reported in the corresponding quarter of the previous financial year.
On a sequential basis however, Shree Cement’s net profit surged 97% from the Rs 267 crore reported in Q3 of the same financial year. Revenue from operations meanwhile rose 27% from Rs 4,801 crore reported in the January-March quarter of FY26.
Total cement sales volume grew by 11% YoY from 9.52 million tonnes to 10.56 million tonnes, while registering 24.5% growth on a quarter-on-quarter basis. Total volume (including clinker sales) also jumped 9.4% YoY from 9.84 million tonnes to 10.77 million tonnes, while increasing 23.2% on a quarter-on-quarter basis.
Along with the Q4 results, Shree Cement announced a final dividend of Rs 70 per equity share for FY26, subject to approval by the members at the upcoming Annual General Meeting (AGM).
Nomura on Shree Cement
Nomura maintained its ‘Buy’ rating on the shares of Shree Cement, with a target price of Rs 28,000 apiece. This implies an upside potential of more than 12% from the stock’s previous closing price of Rs 24,975 apiece on NSE.
The international brokerage noted that the company’s surge in cement volumes were in line with expectations, while EBITDA beat estimates. It however highlighted that the company’s management indicated that fuel cost remained at Rs 1.60/kcal in Q4, and expects a a further 10-12% increase to Rs 1.76-1.80/kcal in the ongoing first quarter of FY27, implying continued cost pressure.
“On the capex front, guidance for FY27E stands at ~INR1.5bn, to be deployed towards RMC expansion, railway sidings, and initial work on the Meghalaya project, with management acknowledging a slowdown in capex and adopting a measured approach,” it added.
JM Financial on Shree Cement
JM Financial maintained its ‘Add’ rating on the stock, but increased its target price by nearly 3% to Rs 28,400 apiece, implying an upside potential of around 14% from the stock’s previous closing price.
The domestic brokerage said that it liked the firm’s better-than-estimated realisation, but did not like the higher than estimated costs. “Incorporating Q4 FY26 performance and improving profitability in UAE operations, we increase our FY27‒FY28E EBITDA estimates by 2-4%. However, lower depreciation guidance led to a sharp increase in EPS estimates,” it said.
Elara Capital on Shree Cement
Elara Capital maintained its ‘Buy’ call on the shares of Shree Cement, with a target price of Rs 31,171 apiece, implying an upside potential of nearly 25% from the previous closing price. The domestic brokerage said that the volume growth accelerated sharply and highlighted the firm’s strong net cash position of Rs 8,400 crore, ET Now reported.
Elara retained its positive stance on the company, citing premiumisation, green energy adoption and cost optimisation initiatives.
Sensex, Nifty today: Catch all the LIVE stock market action here
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
