+
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

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code