Shree Cements sees volume recovery in Q4FY26 and plans aggressive RMC expansion

Shree Cements sees volume recovery in Q4FY26 and plans aggressive RMC expansion

Shree Cements expects a strong recovery in cement volumes in the fourth quarter of the current fiscal, aided by a recovery in infrastructure activity and higher government spending towards the end of the fiscal, management said in a third-quarter analyst conference call.

The company is targeting a sales volume of 9 to 9.5 million tonnes in the January-March quarter.

It noted that the Centre’s push to utilize infrastructure allocations before March 31 is likely to support demand.

While pricing remained a focus in the first part of the year, the company is now looking to boost capacity utilization as volumes improve, an official said.

Additionally, Shree Cements outlined an aggressive expansion plan for its ready-mix concrete (RMC) business, with the company aiming to scale up its RMC footprint to 45 plants from the current 19 units in the next six to eight months.

Management said the RMC push is part of a broader strategy to move up the construction value chain, adding that about 45 percent of the cement consumed at these plants is sourced internally, supporting higher capacity utilization.

On capacity expansion, the company said total cement capacity is expected to reach 72 million tonnes by March 2026. For the next financial year, Shree Cements has earmarked a base investment of ₹500 crore, mainly for RMC expansion and infrastructure projects such as rail sidings.

The company reiterated its long-term capacity target of 80 million tonnes, but said future expansions will be tailored to demand conditions to avoid idle capital.

On the operational front, Shree Cements said it continues to maintain industry-leading cost metrics, with fuel costs at ₹1.56 per kilocalorie. Green energy accounts for 61 percent of total energy consumption, supported by a renewable capacity of 634 MW.

The company remains debt-free and has cash reserves of around ₹6,000 crore, the management said, adding that the company expects the total dividend payout for the current fiscal to be higher than that of the previous year.

Published on February 8, 2026

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