Shree Cement’s Northern Advantage: Profitability on the Rise

Shree Cement Ltd. is strategically positioned in the Indian market, with 60% of its production capacity located in the Northern region. This advantageous placement is set to enhance the company’s profitability, especially as the region anticipates better pricing trends over the next two years. Analysts are optimistic, predicting significant financial gains for Shree Cement in the coming years.

Profit Projections for Shree Cement

According to insights from DAM Capital, Shree Cement is poised to reap the most considerable benefits from the anticipated strong profitability in the North during the fiscal years 2025 to 2027. The Northern region alone accounts for 60% of the company’s overall capacity, and it is expected that a substantial 55-60% of the new capacity to be introduced in this area will come from Shree Cement.

Key Points:

• Shree Cement’s Northern capacity is 60% of its total.
• The company is expected to lead profitability in the region.
• 55-60% of new capacity in the North will come from Shree Cement.

Why the North is Set to Thrive

The Northern cement market is projected to benefit from favorable supply-demand dynamics between FY25 and FY27. This promising outlook is likely to bolster both pricing and profitability, placing the North in a stronger position compared to other regions. In contrast, the Southern and Eastern markets are expected to face oversupply challenges, with 53% of the planned 107 MTPA capacity increase occurring in these areas.

• The South is likely to experience added pressure from the ramp-up of assets by India Cements and Penna Cement, which have been underutilized until now.

Regional Price Trends

Recent reports from Nomura indicate that the Northern region has experienced the most significant quarter-on-quarter cement price increase, with a 4.3% rise in Q4 FY25, translating to an increase of approximately Rs 15 per bag. In comparison, the East saw a 3.6% increase, while price hikes in the Central, Western, and Southern regions remained below 1%.

Furthermore, Nuvama’s dealer surveys reveal that Northern dealers implemented a price hike of Rs 5-7 per bag in March 2025, with an additional increase of Rs 10 per bag following the Holi festival.

Conclusion

Shree Cement’s strategic positioning in the Northern region is set to yield significant profitability in the coming years. As market dynamics favor the North, industry analysts believe Shree Cement will continue to strengthen its market share and financial performance. For those in the cement industry, keeping an eye on these developments will be crucial as they unfold.

For more insights on cement industry trends, check out our articles on market analyses and investment opportunities.