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
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement