Shree Cement Reaffirms Annual Volume Target and Shifts Focus Firmly Toward Organic Growth

Shree Cement has reaffirmed its full-year sales volume guidance, signalling a steady and confident outlook for the rest of the financial year. Chairman HM Bangur confirmed that the company remains committed to achieving over 36 million tonnes of sales, a target it has maintained throughout the year despite regional fluctuations and a competitive pricing environment. The company believes that improving demand and stronger realisations will help sustain the momentum.

According to Bangur, all capacity expansion will be driven exclusively through organic growth, with no plans for acquisitions in the near term. He noted that while the company has evaluated a few external plants, these reviews were focused only on mining assets and not potential takeovers. The company’s strategic roadmap remains firmly tied to its long-term goal of reaching nearly 80 million tonnes of capacity by 2029, supported by ongoing projects expected to lift current capacity to around 68 to 69 million tonnes by year-end.

Although Shree Cement anticipates a marginal dip in its traditional stronghold of North India, where limited new additions have affected its market share, the company remains optimistic about its broader national presence. Strong traction in South, East and West India is expected to support overall growth and help maintain an all-India market share close to 9 percent.

On the profitability front, Bangur expects EBITDA per tonne in the range of ₹1,100 to ₹1,200 for the second half, in line with the first half. He highlighted that the sector had been slightly cautious in pricing after GST-related adjustments, but expects improved pricing discipline to boost margins. Higher volumes and stable demand trends are likely to provide additional support.

Bangur also ruled out share buybacks, stressing that capital must remain focused on expansion. He acknowledged that returns across the cement sector have been subdued due to rigid pricing strategies, but expects industry profitability to strengthen as demand improves and pricing stabilises.

Shree Cement currently holds a market capitalisation of around ₹95,000 crore, reflecting its strong position in India’s evolving cement landscape.