Shree Cement Profit Slips Despite Strong Revenue Growth
The cement maker reported an 18% jump in quarterly revenue, but profit fell sharply due to a significant contraction in net profit margin.
Shree Cement's Q1 FY27 earnings show a mixed picture. While revenue grew healthily, profit declined year-on-year as net profit margin compressed sharply from 12.2% to 8.5%.
Shree Cement delivered a quarter of contrasting fortunes. While revenue growth remained robust, profitability took a significant hit, highlighting margin pressures in the cement sector.
The company's revenue for the quarter ended June 2026 rose 18% year-on-year to ₹6,233 crore. However, profit after tax (PAT) fell 17.5% to ₹531 crore. This divergence points to a sharp contraction in net profit margin, which fell to 8.5% from 12.2% in the same quarter last year. Sequentially, both revenue and profit showed modest growth of about 2% and 1%, respectively, from the March 2026 quarter.
Looking at the recent trajectory, the last five quarters reveal a volatile earnings path.
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 balance sheet with a low debt-to-equity ratio of 0.07.
- The stock trades at a significant premium, with a P/E of 47.6 compared to an industry average of 30.0.
Despite the recent stock price weakness over the past year, the valuation premium suggests the market is still pricing in a recovery in earnings quality. The immediate challenge for Shree Cement is to defend its profitability in the face of rising costs.
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· SHREECEM
(BSE)
ISIN: INE070A01015
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