SHREECEM

focuses on premiumization and price hikes

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is prioritizing a premiumization strategy, focusing on value rather than chasing market share, which is helping them achieve better financial and operational metrics compared to their peers. -> Q1 FY26 Financials: The company's focus on premium products and price hikes, particularly in eastern India, resulted in a significant sequential rise in realizations of ₹203 per tonne to ₹5,528, the highest among its large-cap competitors. However, sales volume fell by around 7% YoY and 9% sequentially to 8.95 million tonnes, missing analyst expectations. Despite this, EBITDA per tonne was ₹1,373, remaining an industry leader on this metric. -> Profitability and Margins: EBITDA grew 34% YoY to ₹1,229 crore, driven by improved pricing, but fell sequentially. A rise in freight costs also weighed on margins. The company continues to lead in energy efficiency, with green electricity comprising 65.6% of its power usage, a gap that should help manage energy costs. -> The volume decline was a key concern, leading to a fourth consecutive quarter of market share loss. This was attributed to their value-over-volume strategy, a high base from the previous year, subdued demand, and regional issues like border tensions and heavy rains in their key north India market. Analysts also raised concerns that this strategy, combined with large capacity expansion plans, could lead to tepid utilization rates and lower returns. -> Shree Cement is aggressively expanding, having added 6.4 mtpa grinding capacity in April and with plans for another 6 mtpa, aiming for a total of 68.8 mtpa by FY26 and 80 mtpa by FY28, with a planned annual capex of ₹4,000 crore. Its UAE subsidiary, Union Cement Co., is also expanding its grinding capacity by 3 mtpa. The company's shares have outperformed peers, but the near-term outlook is tempered by seasonal weakness and a muted pricing scenario.