Shree Cements Q1 Results Review — Dolat Capital Maintains 'Reduce', Cuts Target Price

Shree Cement’s Q1 FY26 revenue, Ebitda/tonne were in line with estimates, however, Volumes and Ebitda came in below expectations, while blended realization/tonne and adjusted profit after tax were above estimates.

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Dolat Capital Report

Shree Cement Ltd.’s Q1 FY26 revenue, Ebitda/tonne were in line with our estimates, however, Volumes and Ebitda came in below expectations, while blended realization/tonne and adjusted profit after tax were above estimates.

We expect revenue/Ebitda/APAT CAGR of 7.8%/21.9%/42.4% over FY25-27E, led by 2.0%/8.0% volume growth and 6.0%/-0.5% blended realization growth in FY26E/FY27E.

We maintain our FY26E/FY27E Ebitda estimates. We expect Ebitda/tonne improvement from Rs 1,078/Rs 1,373 in FY25/Q1 FY26 to Rs 1,437/Rs 1,454 in FY26E/FY27E. However, current market price factors in the expected improvement in profitability.

Accordingly, we maintain our ‘Reduce’ rating with a revised target price of Rs 29,915 based on 17x FY27E EV/Ebitda + 50% of FY27E CWIP + 0.5x P/B UAE subsidiary.

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