Shree Cement, one of India's largest cement makers with operations spanning India and the UAE through Union Cement, reports its Q2 FY 2026-2027 numbers with a clear question hanging over the print: can management deliver the 'healthier profit' it promised from Q2 onwards? The test hinges on whether fuel costs have truly peaked at Rs. 1.95/kcal and whether the Middle East situation that disrupted UAE sales and gypsum supply eases, against a strong volume backdrop of core-sector cement output up 13.1% YoY in July 2026.
| Results date | October 23, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 6,233 Cr |
| Previous quarter PAT | Rs. 531 Cr |
| Previous quarter EBITDA margin | 20.41% |
| Market cap | Rs. 81,037.36 Cr |
| CMP | Rs. 22,460.0 |
A board meeting is scheduled on 23 Oct 2026 to approve the un-audited standalone and consolidated results for Q2 and H1 FY27. The trading window remained closed from 1-25 Oct 2026 under SEBI PIT Regulations.
ICICI Securities will host the Q2 FY27 results conference call on 23 Oct 2026 at 4:30 PM IST. Dial-in numbers are +91 22 6280 1144 and +91 22 7115 8045.
The central question for this quarter is whether management's 'healthier profit from Q2 FY27' call holds, given it was explicitly conditional on Middle East calm, lower gypsum cost and a higher conversion factor. The volume backdrop supports the top line: core-sector cement output grew 13.1% YoY in July 2026 after 9.8% in June, and management guided Indian operations to 9-9.5 Mt in Q2 with July sales already at 3.1 Mt. Pricing, however, stayed flat — the Q2 FY27 all-India average of Rs. 351/bag was actually Rs. 1 below Q1, with the bigger Rs. 10-15/bag hike attempt pushed to October. The fuel tailwind management assumed did not arrive: Brent climbed from about $73 in early July to $102.58 by 28 September, imported petcoke moved to $155-160/t from roughly $110 pre-conflict, and the coal market stayed tight with record-low critical stocks at 90 plants. That sits against management's own guided cumulative cost inflation of Rs. 150-200/ton into Q2 versus March 2026 levels, and gypsum normalisation from Oman remains unverified in public reporting. The upcoming call will likely be probed on the actual fuel Rs./kcal print against the Rs. 1.95 peak, the petcoke share rebound from 9%, and UAE volumes against the 7 Mt-by-Q3 FY27 target.
Volume guidance tracking: Management has reiterated its FY27 volume path across multiple calls.
Profit recovery test: Management guided to 'healthier profit' from Q2 FY27, assuming Middle East calm, lower gypsum cost and a higher conversion factor.
Fuel and cost trajectory: Fuel was the dominant cost headwind in Q1 and management says it has peaked.
UCC commissioning and UAE ramp: UAE operations were disrupted by 'practically no sales in April and May in UAE because of war', with a ceasefire-driven recovery since.
RMC expansion and profitability path: Ready Mix Concrete is scaling fast but is not yet contributing to profit.
The gap narrowed from Rs. 30 to Rs. 15/bag, with Rs. 15-20 across regions and intent to compress further, though an analyst framed it at Rs. 10-12/bag in Q1 FY27. Management said 'In this quarter, there has been no improvement, but we are at it'.
Management acknowledged 'We have slowed down', noting capex guidance of Rs. 1,500 Cr for FY27. It said 'if needed 80 can shift from FY 28 to FY 29'.
Management guided that fuel cost peaked at Rs. 1.95/kcal in Q1 FY27, up from Rs. 1.60 in Q4 FY26, with upside limited to Rs. 0.02-0.03. On the call, management said fuel has 'almost peaked out'.
Management reiterated the 40 Mt FY27 guidance with an H1 checkpoint of 19.5-20 Mt. Indian operations delivered 10.4-10.5 Mt in Q1 and are 'on track' for 9-9.5 Mt in Q2.