Shree Cement Reports Strong FY26 Performance; Board Recommends Final Dividend of Rs. 70 Per Share

Shree Cement Limited's Board of Directors, at its meeting held on May 6, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board also recommended a final dividend of Rs. 70 per equity share of Rs. 10 each for the financial year 2025-26, subject to approval of members at the ensuing Annual General Meeting. The statutory auditors, B R Maheswari & Co LLP, have issued an unmodified audit opinion on both the standalone and consolidated financial results.

Standalone Financial Performance

Shree Cement delivered a strong performance on a standalone basis for FY26. Revenue from operations grew to ₹19,310.52 crore from ₹18,037.33 crore in FY25. Total income for the year stood at ₹19,907.35 crore against ₹18,614.49 crore in the prior year. Net profit for the year rose significantly to ₹1,706.25 crore compared to ₹1,196.23 crore in FY25. EBITDA for the full year improved to ₹4,788.07 crore from ₹4,413.91 crore in FY25.

The following table summarises key standalone financial metrics:

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations (₹ Crore): 5,642.95 4,416.39 5,240.15 19,310.52 18,037.33 Total Income (₹ Crore): 5,755.16 4,543.00 5,390.27 19,907.35 18,614.49 EBITDA (₹ Crore): 1,362.51 987.14 1,531.41 4,788.07 4,413.91 Profit Before Tax (₹ Crore): 670.08 342.49 742.77 2,248.44 1,397.37 Net Profit (₹ Crore): 531.99 278.61 555.98 1,706.25 1,196.23 Basic & Diluted EPS (Rs.): 147.45 77.22 154.09 472.90 331.54 Cash EPS (Rs.): 331.33 239.92 352.64 1,126.26 1,076.87

On the standalone balance sheet, total assets as at March 31, 2026 stood at ₹30,095.13 crore compared to ₹27,755.90 crore as at March 31, 2025. Total equity increased to ₹22,511.60 crore from ₹21,211.39 crore. Net cash flow from operating activities for FY26 was ₹3,492.88 crore, while net cash used in investing activities was ₹3,466.35 crore.

Key Standalone Financial Ratios

The table below presents select standalone financial ratios for the quarter and year ended March 31, 2026:

Ratio: Q4 FY26 Q4 FY25 FY26 FY25 Debt Equity Ratio: 0.07 0.04 0.07 0.04 Debt Service Coverage Ratio: 24.88 7.77 23.05 9.50 Interest Service Coverage Ratio: 24.88 36.73 23.05 21.16 Current Ratio: 1.94 1.94 1.94 1.94 Operating Margin: 24% 29% 25% 24% Net Profit Margin: 9% 11% 9% 7% Net Worth (₹ Crore): 22,511.60 21,211.39 22,511.60 21,211.39

Consolidated Financial Performance

On a consolidated basis, the Group—comprising Shree Cement Limited and its seven subsidiaries—reported revenue from operations of ₹20,943.47 crore for FY26, up from ₹19,282.83 crore in FY25. Total income for the year was ₹21,604.30 crore against ₹19,872.05 crore in FY25. Net profit attributable to owners of the company for FY26 stood at ₹1,743.56 crore, compared to ₹1,122.77 crore in FY25. Consolidated EBITDA for the year improved to ₹5,298.69 crore from ₹4,523.25 crore in FY25.

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations (₹ Crore): 6,101.00 4,800.52 5,532.02 20,943.47 19,282.83 Total Income (₹ Crore): 6,202.16 4,946.04 5,689.95 21,604.30 19,872.05 EBITDA (₹ Crore): 1,485.15 1,092.83 1,586.50 5,298.69 4,523.25 Profit Before Tax (₹ Crore): 666.94 323.96 757.67 2,293.01 1,311.51 Net Profit – Owners (₹ Crore): 525.69 266.70 574.32 1,743.56 1,122.77 Basic & Diluted EPS (Rs.): 145.70 73.92 159.17 483.24 311.18 Cash EPS (Rs.): 357.55 265.55 368.30 1,247.83 1,102.79

Consolidated total assets as at March 31, 2026 were ₹31,475.69 crore versus ₹28,491.76 crore as at March 31, 2025. Total equity attributable to owners of the company stood at ₹23,267.53 crore, up from ₹21,537.75 crore. Net cash flow from operating activities on a consolidated basis was ₹3,794.07 crore for FY26.

Key Consolidated Financial Ratios

The table below presents select consolidated financial ratios for the quarter and year ended March 31, 2026:

Ratio: Q4 FY26 Q4 FY25 FY26 FY25 Debt Equity Ratio: 0.07 0.04 0.07 0.04 Debt Service Coverage Ratio: 26.64 8.07 25.03 9.81 Interest Service Coverage Ratio: 26.64 38.42 25.03 22.07 Current Ratio: 2.16 2.10 2.16 2.10 Operating Margin: 24% 29% 25% 23% Net Profit Margin: 9% 10% 8% 6% Net Worth (₹ Crore): 23,267.53 21,537.75 23,267.53 21,537.75

Dividend and Key Corporate Developments

The Board has recommended a final dividend of Rs. 70 per equity share of Rs. 10 each for FY 2025-26, subject to member approval at the next Annual General Meeting. In addition, the company had already paid an interim dividend of Rs. 80 per equity share of Rs. 10 each for FY 2025-26, declared on October 28, 2025.

During the quarter ended March 31, 2026, the company fully commissioned its integrated cement plant in Kodla, Kalaburagi District, Karnataka. Key details of the new facility are as follows:

Parameter: Details Location: Kodla, Kalaburagi District, Karnataka Cement Capacity: 3.50 Million Tonnes Per Annum (MTPA) Clinker Capacity: 3.65 MTPA Clinkerisation Section Start: 24th February, 2026 Cement Mill Commissioning: 14th March, 2026

Labour Code Impact and Credit Ratings

Following the Government of India's notification of four Labour Codes on November 21, 2025, the company restructured employee compensation effective April 1, 2026. As a result, ₹55.99 crore was recognised towards additional employee benefit obligations during the quarter ended December 31, 2025 and the year ended March 31, 2026 under "Employee Benefits Expenses." On a consolidated basis, the Group recognised ₹55.99 crore during the quarter ended December 31, 2025 and Rs. 56.08 crore during the year ended March 31, 2026 under the same head. The company continues to monitor the finalisation of Central and State Rules and related clarifications.

On the credit front, Shree Cement holds the highest ratings from both CRISIL Ratings Limited (CRISIL AAA; Stable for long term, CRISIL A1+ for short term) and CARE Ratings Limited (CARE AAA; Stable for long term, CARE A1+ for short term). The company has confirmed that it does not qualify as a Large Corporate under the applicable SEBI criteria for FY 2025-26. Outstanding qualified borrowings stood at Rs. 726.60 crore at the start of the financial year and Rs. 728.88 crore at the end of the year, with no incremental qualified borrowings or debt securities issued during FY 2025-26.

Shree Cement Limited has informed stock exchanges about the dismissal of its appeal by the Commissioner (Appeals), CE & CGST, Jodhpur, resulting in the reinstatement of a penalty related to Cenvat Credit violations. The company disclosed this development under Regulation 30 of SEBI listing regulations on April 30, 2026, following an earlier intimation dated February 4, 2025.

Appeal Dismissal Details

The Commissioner (Appeals), CE & CGST, Jodhpur dismissed the appeal filed by Shree Cement against a demand order passed by the Assistant Commissioner, Pali Division, Rajasthan. The dismissal was made for technical reasons, which has resulted in the reinstatement of the original penalty.

Parameter: Details Authority: Commissioner (Appeals), CE & CGST, Jodhpur Order Received: April 29, 2026 Penalty Amount: Rs. 3,59,831 Violation Type: Wrong availment of Cenvat Credit Original Authority: Assistant Commissioner, Pali Division, Rajasthan

Nature of Violation

The penalty stems from allegations of wrong availment of Cenvat Credit by the company. Cenvat Credit is a mechanism that allows manufacturers to claim credit for duties paid on inputs used in the production process. The Assistant Commissioner, Pali Division, Rajasthan had originally passed the demand order imposing the penalty for this violation.

Financial Impact Assessment

Shree Cement has assessed that the order will have no major financial impact on the company's operations. The penalty amount of Rs. 3,59,831, while significant in absolute terms, appears manageable for the cement manufacturer given its scale of operations.

Company's Response Strategy

The company is currently reviewing the dismissal order and consulting with legal advisors to determine the appropriate course of action. Shree Cement has indicated that it is evaluating next steps, which may include filing an appeal before the Tribunal. The disclosure was made through official communication to both NSE and BSE, signed digitally by Company Secretary S.S. Khandelwal.

The company's proactive approach in consulting legal experts suggests it may challenge the dismissal through available appellate mechanisms. This regulatory disclosure demonstrates Shree Cement's commitment to transparency in keeping shareholders informed about material developments affecting the company.

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