Mumbai, July 31 — Shree Cement Limited on Friday reported a 17.7 per cent decline in consolidated net profit for the quarter ended June 30 (Q1 FY27), as elevated fuel and raw material costs weighed on margins despite robust growth in sales volumes and revenue.

The company’s net profit stood at Rs 529 crore in the April-June quarter of FY27, compared with Rs 643 crore in the corresponding period of the previous financial year. Revenue from operations rose 18 per cent year-on-year to Rs 6,233 crore from Rs 5,281 crore, supported by higher cement dispatches and improved demand.

At the operating level, EBITDA declined 4.5 per cent to Rs 1,272 crore from Rs 1,333 crore a year earlier. The EBITDA margin contracted to 20.4 per cent from 25.2 per cent.

Shree Cement attributed the margin pressure to higher fuel and raw material expenses linked to the ongoing West Asia crisis, which offset the benefits of increased sales volumes.

Despite the cost headwinds, operational performance remained healthy. Cement sales volume increased 17 per cent year-on-year to 10.23 million tonnes, while total sales volume, including clinker, rose 17.2 per cent to 10.49 million tonnes.

Managing Director Neeraj Akhoury said the quarter was marked by healthy demand, strong volume growth and continued progress in the company’s premiumisation strategy. Premium products accounted for 23.3 per cent of trade volumes during the quarter, up from 17.7 per cent in the year-ago period.

The company also reported improvement in its sustainability metrics. Its Thermal Substitution Rate rose to 5.1 per cent from 1.9 per cent a year earlier. A higher Thermal Substitution Rate reflects greater use of alternative fuels in place of conventional fossil fuels, supporting energy efficiency and lower carbon emissions over time.

Following the earnings announcement, Shree Cement shares recovered part of their intra-day losses and were trading 1.23 per cent lower at Rs 26,130 in afternoon trade. The stock has declined more than 15 per cent over the past one year.

The results highlight the impact of external cost pressures on profitability even as the company recorded solid volume growth and advanced its premium product mix.