Archive · 5 Aug 2025
Shree Cement Prioritizes Premium, Despite Volume and Market Share Drops
Shree Cement is selling more expensive cement instead of just trying to sell a lot.
This strategy is helping them make more money per ton of cement.
They made the most money per ton compared to their competitors in the last quarter.
Even though they are doing well with prices, they sold less cement than before.
They are also building new factories to make even more cement in the future.
Shree Cement prioritizes value over volume, focusing on premium products.
Q1FY26 saw Shree Cement's realizations at ₹5,528 per tonne, highest among peers.
Premium products accounted for 17.7% of Shree Cement's trade sales in Q1FY26.
Cement sales volume fell 7% year-on-year in Q1FY26, missing analyst expectations.
Shree Cement is expanding capacity and targeting 80mtpa by FY28.
- Who
- Shree Cement and its competitors, industry analysts.
- What
- Shree Cement focuses on premium products, impacting sales volume and financial metrics.
- When
- Q1FY26
- Where
- India, with operations in the UAE.
- Why
- Shree Cement aims for value over volume, and expands capacity.
Concerns
Optimism
Volume vs. Value
Concerns
Focus on premiumization may limit volume.
Optimism
Expanding capacity and targeting higher production.
Return Ratios vs. Revenue
Concerns
Lower capacity utilization will lead to lower return ratios.
Optimism
Higher realizations will result in higher revenue.
- Q1FY26 Realizations
- ₹5,528 per tonne
- Premium Products (Q1FY26)
- 17.7% of trade sales
- Volume Decline (Q1FY26)
- 7% YoY
- Ebitda (Q1FY26)
- ₹1,229 crore
- Capacity (FY26)
- 68.8mtpa
- Capacity Target (FY28)
- 80mtpa