Shree Cement's Profitability Squeeze Masks Steady Revenue Growth
The cement major posted an 18% YoY revenue jump, but profit fell sharply as net margins compressed by 370 basis points.
Shree Cement's Q1 FY27 results show a clear divergence: strong top-line growth contrasted by a significant drop in profitability. While revenue climbed, net profit margin fell to 8.5%.
Shree Cement delivered a quarter of mixed signals, with robust revenue growth overshadowed by a sharp contraction in profitability. While sales momentum remained strong, rising costs or other pressures significantly eroded the bottom line, leading to a notable year-on-year decline in profit.
The company's revenue for Q1 FY27 reached ₹6,233 crore, marking an 18% increase compared to the same quarter last year. Sequentially, revenue also grew by 2.2% from the March 2026 quarter. However, profit told a different story, falling 17.5% year-on-year to ₹531 crore, though it held nearly flat compared to the previous quarter. This divergence highlights a severe profitability squeeze, with the net profit margin dropping to 8.5% from 12.2% a year ago—a compression of 370 basis points.
A look at the recent quarterly trajectory shows revenue has been on a steady climb over the past three quarters, while profit has stabilized after a dip in the middle of last fiscal year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 6,233.13YoY +18% | 6,101.00 | 5,280.88 |
| Profit (₹ Cr) | 531.12YoY -17% | 527.53 | 643.66 |
| Net Profit Margin (%) | 8.5YoY -30% | 8.6 | 12.2 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 7.5%, below the latest quarter's level.
- The company maintains a strong, conservative balance sheet with a debt-to-equity ratio of just 0.07.
- The stock trades at a P/E of 47.6, a significant premium to the industry average of 34.1.
Despite the top-line strength, the persistent margin pressure will be the critical factor for Shree Cement's earnings recovery in the coming quarters.
Live Chart
· SHREECEM
(BSE)
ISIN: INE070A01015
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.