Archive · 31 Jul 2026
Shree Cement Q1 Profit Falls Amid West Asia Fuel Surge
Shree Cement, a big cement maker in India, earned less money in the first quarter of 2027 because it had to pay more for fuel and raw materials.
The price rise was caused by a war in West Asia that made it hard to get cheap supplies.
Even though the company sold more cement, the cost of making it went up.
The CFO said the high fuel cost is almost at its peak and should go down if the Middle East stays calm.
He also said the company will focus on making money, not just selling more.
Shree Cement’s Q1FY27 net profit fell 18% to ₹529 crore due to higher fuel and raw material costs from the West Asia conflict.
Revenue rose 18% to ₹6,233 crore, but EBITDA margin contracted to 20.4% from 25.2% a year earlier.
The company switched from petroleum coke to coal, raising production costs and reducing blended cement sales.
Demand stayed strong, with cement sales up 17% YoY, but trade sales share fell to 62% and blended cement ratio dropped to 50%.
CFO Ashok Bhandari expects costs to peak and profitability to improve in Q2 if Middle East conditions stabilize.
- Who
- Shree Cement Ltd and CFO Ashok Bhandari
- What
- Q1FY27 profit decline due to higher fuel and raw material costs from West Asia conflict
- When
- Quarter ended 30 June 2027
- Where
- Kolkata-based company with operations in India and UAE
- Why
- Higher fuel and raw material costs triggered by West Asia conflict
- Net profit
- ₹529 crore
- Revenue
- ₹6,233 crore
- EBITDA
- ₹1,272 crore
- EBITDA margin
- 20.4%
- Fuel cost trend
- Peaked