Shree Cement (SRCM IN) – Q2FY26 Result Update – Regaining volume momentum will be the key – Accumulate
Published on 28 Oct 2025
Management reiterated its value-over-volume strategy, aiming for profitable growth even as capacity expands. However, to outperform the industry volume growth, SRCM may need to recalibrate its approach by driving volumes and capitalizing on the current pricing stickiness. Over last few quarters, SRCM has lost market share to its peers which remains a cause of concern. Although it has grown in line with industry in Q2, regaining volume momentum amid rising competitive intensity will be the key for SRCM to outperform. We cut our FY27/28E EBITDA estimates by ~2% each on lower volume assumptions. The stock is trading at EV of 16.4x/14x FY27/FY28E EBITDA. Maintain ‘Accumulate’ with revised TP of Rs31,769 (earlier Rs32,410) valuing at 17x EV of Sep’27E EBITDA.
