Shree Cement has outlined its strategy for FY26, aiming to enhance profitability through improved pricing rather than focusing on volume growth. The company anticipates only a modest increase in sales volumes, around 2鈥�4 per cent, but expects price hikes of 5鈥�6 per cent to drive overall revenue growth by approximately 9 per cent.
The company is confident it can maintain an average EBITDA per tonne of around Rs 1,400 this year, supported by better pricing and stable costs.
Although demand dipped slightly in May due to heatwaves and regulatory restrictions in parts of Rajasthan and Punjab, Shree Cement expects demand to improve in the coming months, helped by a favourable monsoon, which should support both rural and urban markets.
The company is unaffected by the West Bengal government鈥檚 withdrawal of industrial incentives for cement manufacturers, as it has no operational units in the state and has not received any incentives from there over the past five years. The incentives recorded in the previous fiscal year, amounting to Rs 80鈥�10 billion, primarily came from Rajasthan and Uttar Pradesh.
On the expansion front, the company plans to continue pursuing organic growth. While it has submitted a bid for Jaypee Cement鈥檚 assets, it does not intend to pursue the acquisition aggressively, citing the asset鈥檚 limited market presence. Shree Cement remains on track to reach its target of 80 million tonnes in production capacity by 2030, potentially achieving it a year earlier.
With a net cash reserve exceeding Rs 5,500 crore, the company is also exploring options to reward its shareholders. A final decision on this front is expected within the year.
News source: CNBC TV18
