Shree Cement's margin recovered sequentially but stayed below last year's level
Revenue grew 27.09% sequentially, outpacing expenses, but annual cost growth and a 35.02% rise in interest kept profit below Q4FY25.
Filed 06 May 2026, 17:06 IST · after market close · Shree Cement Ltd (SHREECEM)
Key takeaways
- Consolidated Q4FY26 operating margin recovered 2.95 percentage points sequentially to 22.68%, but remained 3.14 percentage points below Q4FY25.
- Revenue grew 10.29% YoY while expenses rose 14.95%, pulling operating profit down 3.12%.
- Net profit fell 8.25% YoY as pre-tax profit declined 11.97%, partly cushioned by a 3.21-percentage-point lower tax rate.
Price around the results
Sequential recovery did not erase the annual slowdown
Shree Cement's consolidated revenue grew 10.29% YoY, but expenses rose 14.95%, reducing operating profit by 3.12%. Sequentially, revenue increased 27.09% while expenses grew 22.42%, allowing operating margin to recover by 2.95 percentage points. Net profit still declined 8.25% YoY, as higher interest costs and weaker operating profit outweighed the improvement in sequential performance.
Lower tax helped, while other income remained material
The YoY tax-rate reduction of 3.21 percentage points softened the decline in pre-tax profit, which fell 11.97%. Interest costs rose 35.02% YoY, adding pressure below the operating line. Other income contributed 15.17% of pre-tax profit, so reported earnings were not solely driven by operations.
Margin recovered from a three-quarter slide, but remains below Q4FY25
Operating margin moved from 25.23% in Q1FY26 to 20.46% in Q2FY26 and 19.73% in Q3FY26 before recovering to 22.68% in Q4FY26. Among 51 Commodities peers that have reported, Shree Cement's margin was 3.91 percentage points above the sector median of 18.77%.
The first-day reaction was close to the stock's usual results move
The stock rose 2.48% on the first reaction day and was up 0.20% after five sessions. Across the previous eight results reactions, it rose three times and fell five times, with a median absolute move of 2.19%, making this response broadly typical.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,101 cr | ₹4,801 cr | +27.09% | +10.29% |
| Other income | ₹101 cr | ₹146 cr | -30.48% | -35.95% |
| Expenses | ₹4,717 cr | ₹3,853 cr | +22.42% | +14.95% |
| Operating profit | ₹1,384 cr | ₹947 cr | +46.10% | -3.12% |
| Operating margin (%) | 22.68% | 19.73% | — | — |
| Interest | ₹56 cr | ₹59 cr | -5.57% | +35.02% |
| Depreciation | ₹762 cr | ₹710 cr | +7.41% | -3.18% |
| Profit before tax | ₹667 cr | ₹324 cr | +105.87% | -11.97% |
| Tax | ₹139 cr | ₹56 cr | +147.58% | -23.69% |
| Net profit | ₹528 cr | ₹268 cr | +97.10% | -8.25% |
| EPS (₹) | ₹145.70 | ₹73.92 | +97.10% | -8.46% |
Operating margin of 22.68% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.48% | +2.50% |
| Next session | +1.84% | — |
| 5 sessions | +0.20% | +2.84% |
| 15 sessions | +1.20% | — |
| 30 sessions | +0.40% | — |
Volume on the results session was 1.67× its 20-day average.
What to watch
- Whether operating margin holds above 22.68% after recovering from 19.73% in Q3FY26.
- Whether expense growth remains below revenue growth after the sequential gap of 27.09% versus 22.42%.
- Whether other income's 15.17% contribution to pre-tax profit becomes smaller.