Shree Cement Ltd (SHREECEM) Q1 FY27 Results Analysis: PAT Plunges 29%, EBITDA Margin Compresses 621 bps

Shree Cement Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 5,622.68 Cr (+13.64% YoY) and PAT growth of -29.19% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 13.64% YoY but severe margin compression from fuel cost spike (power and fuel +29.24% YoY) drove EBITDA margin down 621 bps and PAT down 29.19%. Balance sheet remains strong with negligible debt. Key watch is fuel cost trajectory and ability to pass through price hikes.

Key Investment Insights

Key Positives

• Revenue grew 13.64% YoY to Rs.5,622.68 Cr, supported by price hikes and volume growth.
• Balance sheet remains strong with debt-equity ratio of 0.07x and net worth of Rs.22,942.84 Cr (+5.05% YoY).
• Credit rating reaffirmed at CARE AAA; Stable by CARE Ratings.
• Subsidiaries contributed Rs.91.20 Cr PAT (17.2% of consolidated PAT), with higher margins than standalone.

Risk Factors

• EBITDA margin compressed 621 bps YoY to 22.69%, driven by fuel cost surge and freight cost increase.
• PAT declined 29.19% YoY to Rs.437.99 Cr, with EPS falling to Rs.121.39 from Rs.171.42.
• Power and fuel costs rose 29.24% YoY to Rs.1,481.25 Cr, reflecting international petcoke price spike.
• Effective tax rate jumped to 30.94% from 25.76% a year ago, adding ~400 bps drag on PAT margins.
• Debtors turnover and inventory turnover weakened, indicating slower collections and higher inventory build.