Shree Cement (SRCM IN) – Q2FY27 Result Update – Strong volumes, but higher fuel costs impacted Q2 – BUY
Published on 23 Oct 2026
Shree Cement (SRCM) reported strong operating performance in Q2FY27, with volumes growing 17.7% YoY to 9.31mt. Blended NSR grew 2.3% QoQ led by increase in cement prices in the Northen region and increase in premium share to 28.7% (23.3% QoQ). Higher fuel costs due to elevated pet coke and coal increased the landed fuel cost to INR2.09/kcal leading to EBITDA/t of INR912 (PLe of INR896). Pet coke share in the fuel mix declined sharply to 11% from 66% in Q2FY26, while imported coal accounted for 75%. Management expects landed fuel cost to rise to INR2.15-2.20/kcal in Q3FY27, with overall costs expected to remain broadly similar to Q2FY27. FY27 volume guidance stands at 40-41mt, while October prices were higher than September, supporting expectations of improved realization in H2. Maintain ‘BUY’ with a revised TP of INR28,379 (earlier INR27,969), valuing the stock at same 17x Sep’28E EV/EBITDA.
