Shree Cement banks on pricing strategy to boost FY26 growth
Cement

Shree Cement banks on pricing strategy to boost FY26 growth

Shree Cement has outlined its strategy for FY26, aiming to enhance profitability through improved pricing rather than focusing on volume growth. The company anticipates only a modest increase in sales volumes, around 2–4 per cent, but expects price hikes of 5–6 per cent to drive overall revenue growth by approximately 9 per cent.

The company is confident it can maintain an average EBITDA per tonne of around Rs 1,400 this year, supported by better pricing and stable costs.

Although demand dipped slightly in May due to heatwaves and regulatory restrictions in parts of Rajasthan and Punjab, Shree Cement expects demand to improve in the coming months, helped by a favourable monsoon, which should support both rural and urban markets.

The company is unaffected by the West Bengal government’s withdrawal of industrial incentives for cement manufacturers, as it has no operational units in the state and has not received any incentives from there over the past five years. The incentives recorded in the previous fiscal year, amounting to Rs 80–10 billion, primarily came from Rajasthan and Uttar Pradesh.

On the expansion front, the company plans to continue pursuing organic growth. While it has submitted a bid for Jaypee Cement’s assets, it does not intend to pursue the acquisition aggressively, citing the asset’s limited market presence. Shree Cement remains on track to reach its target of 80 million tonnes in production capacity by 2030, potentially achieving it a year earlier.

With a net cash reserve exceeding Rs 5,500 crore, the company is also exploring options to reward its shareholders. A final decision on this front is expected within the year.

News source: CNBC TV18

Shree Cement has outlined its strategy for FY26, aiming to enhance profitability through improved pricing rather than focusing on volume growth. The company anticipates only a modest increase in sales volumes, around 2–4 per cent, but expects price hikes of 5–6 per cent to drive overall revenue growth by approximately 9 per cent.The company is confident it can maintain an average EBITDA per tonne of around Rs 1,400 this year, supported by better pricing and stable costs.Although demand dipped slightly in May due to heatwaves and regulatory restrictions in parts of Rajasthan and Punjab, Shree Cement expects demand to improve in the coming months, helped by a favourable monsoon, which should support both rural and urban markets.The company is unaffected by the West Bengal government’s withdrawal of industrial incentives for cement manufacturers, as it has no operational units in the state and has not received any incentives from there over the past five years. The incentives recorded in the previous fiscal year, amounting to Rs 80–10 billion, primarily came from Rajasthan and Uttar Pradesh.On the expansion front, the company plans to continue pursuing organic growth. While it has submitted a bid for Jaypee Cement’s assets, it does not intend to pursue the acquisition aggressively, citing the asset’s limited market presence. Shree Cement remains on track to reach its target of 80 million tonnes in production capacity by 2030, potentially achieving it a year earlier.With a net cash reserve exceeding Rs 5,500 crore, the company is also exploring options to reward its shareholders. A final decision on this front is expected within the year.News source: CNBC TV18

Next Story
Infrastructure Energy

Invenia Wins Rs 3.6 Billion Contract for PowerGrid Data Centre

Invenia-STL Networks Limited, a leading digital infrastructure and IT services company, announced it has secured a major contract worth over Rs 3.6 billion from PowerGrid Teleservices Limited (PowerTel), a wholly owned subsidiary of the Power Grid Corporation of India Limited (PGCIL), the nation’s largest electric power transmission utility.Under the agreement, Invenia will design, build, commission and maintain the complete IT and cloud infrastructure for a greenfield Tier III data centre at PowerGrid’s Manesar facility. In addition, Invenia will establish a Disaster Recovery Data Centre ..

Next Story
Infrastructure Energy

Vikram Solar Secures 200 MW Order to Expand India’s Solar Capacity

Vikram Solar, one of India’s leading solar PV module manufacturers, has announced a major order of 200 MW high-efficiency solar modules from AB Energia, a specialist in end-to-end EPC solutions for commercial and industrial (C&I) solar projects. The modules, rated at 590 Wp and above, will be deployed across Maharashtra, Madhya Pradesh and Gujarat — three solar-progressive states accelerating their adoption of clean energy.Under this order, Vikram Solar will supply its advanced M10R N-Type TOPCon modules, designed for superior performance, reliability and higher energy yield. Deliverie..

Next Story
Real Estate

Shriram Properties Backs Neerathon 2025 to Promote Water Conservation

Shriram Properties Limited (SPL), one of India’s leading residential developers in the mid-market and mid-premium segments, reaffirmed its commitment to sustainability and community welfare by supporting IPA Neerathon 2025 in Chennai as the Title Sponsor. The event, which attracted thousands of participants across 10K, 5K and 3K categories at Island Grounds, was more than a race — it was a movement for water conservation and environmental stewardship.For SPL, this partnership aligns with its long-standing efforts to support initiatives beyond real estate, promoting sustainable communities ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?