Revenue rose 18%, but margin fell 4.82 points YoY
Costs grew 25.65% against 18.03% revenue growth, while other income made up 28.57% of pre-tax profit.
Filed 31 Jul 2026, 14:26 IST · Shree Cement Ltd (SHREECEM)
Key takeaways
- Consolidated revenue grew 18.03% YoY, but operating margin fell 4.82 percentage points as expenses rose 25.65%.
- Net profit fell 17.48% YoY, with interest expense up 24.88% and the tax rate 2.44 percentage points higher.
- Operating margin was 20.41%, 1.02 percentage points above the 19.39% median for 41 reported sector peers.
Price around the results
Revenue growth did not translate into operating profit
Shree Cement’s consolidated revenue grew 18.03% YoY in Q1FY27, but operating profit declined 4.53% because expenses increased faster than revenue. Pre-tax profit fell 14.67% YoY, also reflecting a 24.88% rise in interest expense. Net profit declined 17.48% and EPS fell 17.66%.
Costs narrowed margins; other income supported reported profit
Expenses grew 25.65% YoY against 18.03% revenue growth, reducing operating margin by 4.82 percentage points. Other income was 28.57% of pre-tax profit, so reported earnings had a material non-operating contribution. The tax rate also rose 2.44 percentage points YoY, adding to the pressure on net profit.
Sequential recovery in profit came with a margin reversal
Revenue rose 2.17% QoQ, but expenses grew 5.17%, driving an 8.08% decline in operating profit and a 2.27 percentage-point margin contraction. Net profit still increased 0.68% QoQ as other income rose 109.28% and depreciation fell 10.03%, partly offset by a 7.43 percentage-point increase in the tax rate. Operating margin had recovered to 22.68% in Q4FY26 after falling to 19.73% in Q3FY26, but declined again this quarter; it remained 1.02 percentage points above the 19.39% median for 41 reported commodities-sector peers.
No immediate stock reaction; recent responses have been mixed
There is no post-results price move to assess yet. Across eight recent results, the stock rose four times and fell four times, with a median absolute move of 2.48%, indicating no consistent direction after earnings.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,233 cr | ₹6,101 cr | +2.17% | +18.03% |
| Other income | ₹212 cr | ₹101 cr | +109.28% | -10.00% |
| Expenses | ₹4,961 cr | ₹4,717 cr | +5.17% | +25.65% |
| Operating profit | ₹1,272 cr | ₹1,384 cr | -8.08% | -4.53% |
| Operating margin (%) | 20.41% | 22.68% | — | — |
| Interest | ₹57 cr | ₹56 cr | +1.99% | +24.88% |
| Depreciation | ₹686 cr | ₹762 cr | -10.03% | +4.92% |
| Profit before tax | ₹741 cr | ₹667 cr | +11.12% | -14.67% |
| Tax | ₹210 cr | ₹139 cr | +50.61% | -6.61% |
| Net profit | ₹531 cr | ₹528 cr | +0.68% | -17.48% |
| EPS (₹) | ₹146.67 | ₹145.70 | +0.67% | -17.66% |
Operating margin of 20.41% compares with a Commodities sector median of 19.39% across 41 peers that have reported Q1FY27.
What to watch
- Whether expense growth moderates from 25.65% YoY relative to revenue growth of 18.03%.
- Whether operating margin recovers from 20.41% after the 2.27 percentage-point QoQ decline.
- Whether other income remains a material contributor to pre-tax profit from the current 28.57% share.