Shree Cement Q2 FY27: consolidated PAT down 15% YoY to ₹263 Cr on fuel-cost surge

Shree Cement's consolidated revenue rose 23.9% YoY to ₹5,896.51 Cr in Q2 FY27 (quarter ended September 30, 2026), but consolidated profit for the period fell 14.96% YoY to ₹263.46 Cr (₹261.82 Cr attributable to owners), with EPS of ₹72.56 against ₹85.50 a year ago. Sequentially, revenue dipped 5.4% from Q1 FY27's ₹6,233.13 Cr — a seasonal monsoon-quarter pattern typical for cement — but PAT nearly halved QoQ (-50.4% from ₹531.12 Cr), a steeper fall than seasonality alone explains. The YoY profit decline despite double-digit revenue growth, not the topline gain, is the real story of the quarter. The squeeze sits almost entirely on the power-and-fuel line: this cost jumped 55.7% YoY to ₹1,843.25 Cr, rising to 31.3% of revenue from 24.9% a year ago and 26.4% last quarter. That directly contradicts management's Q1 FY27 concall claim that fuel cost (then cited at ₹1.95/kcal) had 'peaked' in Q1 and would stabilise from Q2 'if Middle East calm prevails' — the data shows the opposite happened. Operating EBITDA margin (ex-other income) compressed to 17.2% from 20.5% YoY and 20.4% QoQ; net margin fell to 4.4% from 6.3% YoY and 8.2% QoQ. Freight (+12.7% YoY) and other expenses (+18.9% YoY) also outpaced revenue growth, though at a smaller scale than fuel. The print missed the Street bar we flagged pre-result: our preview expected PAT of ₹450-500 Cr and an EBITDA margin of 20-22%; actual PAT of ₹263 Cr and a margin near 17-19% both fall well short, even as revenue (₹5,897 Cr) beat the ₹5,650-5,700 Cr estimate — volumes/pricing held up while cost control did not. Standalone told a sharper version of the same story: standalone PAT fell 25.9% YoY to ₹205.33 Cr versus consolidated's 15.0% decline, suggesting international/subsidiary operations cushioned the group-level hit. The quarter also carried a cluster of corporate developments — a new China subsidiary incorporation (Oct 14), a promoter reclassification request (Oct 8), and dismissal of a tax appeal by Hyderabad authorities (Oct 7) — none reflected in this quarter's numbers but worth tracking into H2. Management's FY27 guidance from the Q1 concall implied roughly 40 MT of volumes for the full year and about 20 MT for H1 (10.4-10.5 MT in Q1 plus a 9-9.5 MT Q2 target), alongside ₹1,500 Cr of India capex for the year; neither volume nor capex detail is disclosed in this results filing and no management press release was available to cross-check, so the guidance verdict here rests on the one claim that is verifiable — fuel-cost stabilisation — which was missed. H1 FY27 PAT of ₹794.58 Cr, down 16.65% YoY despite 20.8% revenue growth, confirms the margin pressure spans both quarters of H1, raising the bar for Q3 to show the cost stabilisation management had promised for Q2.