Shree Cement: 1Q: volumes up, but so are costs – overall miss

研报英文原文证据摘录

Shree Cement: 1Q: volumes up, but so are costs – overall miss

J P M O R G A N Asia Pacific Equity Research

03 August 2026

Shree Cement Underweight

SHCM.NS, SRCM IN

1Q: volumes up, but so are costs – overall miss Price (31 Jul 26):Rs26,055.00

Price Target (Mar-27):Rs21,500.00

SRCM reported 1QFY27 standalone EBITDA of Rs.10.7bn, missing JPMe of Head of India Research

ACc.Rs.12bn. Headline volumes of 10.2MT (up 17% YoY) were strong, as Sanjay Mookim

anticipated. Realizations increased QoQ in line with peers. The miss was on (91-22) 6157-3600

account of a sharp increase in power and fuel costs (sharper than peers). Overall sanjay.mookim@jpmorgan.com

EBITDA/MT of Rs.1,050 declined from Rs.1,160 in 4QFY26. Management Atishy Rathi, CFA

suggested a) much of the cost increase was one-off, driven by a reduction in (9122) 6157-3589

petcoke / gypsum supplies, b) the use of locally sourced coal changed production atishy.rathi@jpmchase.com

J.P. Morgan India Private Limited, J.P. Morgan

characteristics, forcing increased sales to non-trade, c) the company remains Tower, Santacruz(E), Mumbai - 400098, SEBI

focused on ‘value over volume’ and will look to reduce costs / regain trade share Registration: INH000001873, (91-22) 6157-3000.

as the situation normalizes. The SRCM stock has outperformed the market over the

last two months – likely in anticipation of the strong volume recovery. The earnings

Style Exposure

miss could cause a near-term reversal. Maintain U/W.

• Miss on EBITDA and PAT: SRCM reported EBITDA of Rs.10.7bn, below

JPMe of c.Rs.12bn and consensus of Rs.11.3bn. Depreciation was lower than

expected (down 8% QoQ), but other income was also lower than we forecast

(flat YoY). A high overall tax rate of 31% meant overall PAT of Rs.4.4bn

missed JPM estimates of Rs.5.3bn.