Shree Cement Limited (NSE: SHREECEM) Q4 2025 Earnings Call dated May. 14, 2025
Corporate Participants:
Neeraj Akhoury — Managing Director
Subhash Jajoo — Chief Financial Officer
Ashok Bhandari — Senior Advisor
K.K. Jain — Head of Finance
Analysts:
Navin Sahadeo — Analyst
Amit Murarka — Analyst
Satyadeep Jain — Analyst
Rajesh Ravi — Analyst
Raghav Malik — Analyst
Shravan Shah — Analyst
Naveen Sahadev — Analyst
Moksh Ranka — Analyst
Rahul Gupta — Analyst
Jyoti Gupta — Analyst
Girija Shankar — Analyst
Uttam Kumar Srimal — Analyst
Ashish Jain — Analyst
Rashi — Analyst
Tushar Chowdhury — Analyst
Presentation:
Operator
Ladies and gentlemen. Good day, and Welcome to the Shree Cement Limited Q4 FY25 Earnings Conference Call. Hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Navin Sahadeo for opening remarks. Thank you. And over to you sir.
Navin Sahadeo — Analyst
Thank you, Saisha. Good evening everyone. On behalf of ICICI Securities, I welcome you all to the Q4 FY25 earnings call of Shree Cement. From the management, we have with us MD, Mr. Neeraj Akhoury; Senior Advisor, Mr. Ashok Bhandari; and CFO, Mr. Subhash Jajoo.
So without any further ado, I hand over the call to the management for their opening comments. Over to you sir.
Neeraj Akhoury — Managing Director
Thank you. Thank you, Navin. Good morning or Good evening ladies and gentlemen. Most welcome to the call for Shree Cement Limited. I’m sure you must have had a chance to read our quarterly results. The Q4 last quarter has witnessed a rebound in demand driven by increase in government capex and overall pickup in all the economic activities.
The residential sector demand picked up propelled by uptick in rural demand because of good monsoons and increased urbanization. The commercial segment has also shown good potential driven by retail and office space expansion which is fast emerging as another cement demand growth driver. While there are several challenges but the strategic expansions, consolidation and sustainability efforts position the cement industry for a long term growth.
Talking about operational and financial performance, the current quarter has been a period of superior performance, if I may say so. Our total India sales volume increased to 9.84 million tons in the current quarter up from 8.67 million tons on sequential basis registering a growth of approximately about 13%.
Our focus on premium products helped us improve our average radiation per ton by about 5% to INR4,768 from INR4,554 on sequential basis again. Supported by drop in the fuel sourcing cost, rationalization of the power cost due to rising share of green energy and efficiency measures undertaken across our operations.
EBITDA for the quarter was INR1,383 crore representing a growth of 47%. EBITDA per ton increased by 29% to INR1,406 from INR1,088 on sequential basis. In fact, I might just like to add that our adjusted EBITDA per ton is standing at 1437. When the impact of one off item of INR30.66 crores regarding impact of voluntary separation scheme of employees and contract workers undertaken by the company, the quarter is taken into account.
Companies focus over last several months has been on improving price variation through enhancing our sale of premium products, raising -the level of brand positioning versus competitors and a superior better geo mix. We are confident ladies and gentlemen that going forward the strategy will play out in improving brand equity, lifting volumes as well as price realization.
The company continues its effort towards enhancing the share of green power to produce cement in a more sustainable and cost effective manner. The company’s share of green electricity in total electricity consumption very proud to say is stood at about 60.2% in quarter four ’25 which is one of the highest in the Indian cement industry if not the global cement industry.
The company is consistently ramping up its green power generation capacity which stood at 582 megawatts at the end of quarter four FY25 up by 21% vis-a-vis 480 megawatts at the beginning of the FY24 – FY25. During March 25, the company commissioned a solar power of 60.3 megawatt at Jodhpur in Rajasthan. The work on few more solar plants at different plant sites is underway. Accordingly, we are convinced that going forward the share of green energy will increase further.
The company also remains focused and committed to improve our ESG performance on all parameters. Again, very proud to say that yesterday the company received ESG rating Care Edge ESG1 with a rating score of 70.8% from Care ESG Ratings Limited. The above ratings represent Shree Cement’s leadership position in managing ESG risk through his best-i- class disclosure policies and performance.
Further, the company also secured its place with the S&P Global Assembly Yearbook ’25 as an industry mover based on S&P Global Comprehensive Corporate Sustainability Assessment. The sustainability yearbook comprises companies scoring in the top 15% of the industry for sustainable business practices.
On the capex front recently the company commissioned a few units. First was the cement grinding unit in Ita near Agra in Uttar Pradesh of 3 million ton through its wholly owned subsidiary and the second was a cement grinding unit at Baroda Bazaar, Chhattisgarh which is about 3.4 million tons. This has taken our total installed cement capacity to $62.8 million tons in India. Company’s other ongoing projects of integrated cement unit in Jaitaran and Rajasthan and Kodla in Karnataka scheduled for commissioning by end of quarter one ’26 and quarter two ’26 respectively.
Further, the company decided that out of the two cement mills of aggregate 6 million ton capacity planned earlier in Jaitaran and Rajasthan only one will be commissioned in Jaitaran while the other mill will be installed later. The company is continuously working to identify suitable opportunities to reach its goal of achieving more than 80 million tons capacity by 2028.
Recognizing the market demand for premium products, the company has launched several premium products which have resulted into increase of share of premium product sales from 11.9% in Q4 2024 to 15.6% in Q4 of ’24 ’25. During March quarter the company launched Bangur Marble Cement extra wide Portland slag cement in Bihar, West Bengal and Jharkhand markets. The product offers high performance attributes and an eco friendly approach incorporating GBS byproduct from the steel manufacturing. An eco-friendly approach from our side and the composition supports stronger, more durable structures by reducing the environmental footprints.
The product will be offered alongside Bangur Cement’s premium lineup including Jangorodhak, Rockstrong, Power, Magna and Roofon. We are expecting the cement demand to grow by 6.5% to 7.5% during FY26 fueled by infrastructure projects, rural recovery, real estate momentum and software interest rates. This is from my side, ladies and gentlemen.
Now I hand over to my colleagues Mr. Ashok Bhandari, our Senior Advisor; Mr. Subhash Jajoo, our CFO to take this conversation further. In addition to them we also have our Company Secretary with us Mr. Khandelwal as well as our Head of Finance and Accounts, Mr. K.K. Iain with us. Thank you everyone.
Subhash Jajoo — Chief Financial Officer
Thank you, Neeraj ji. Good afternoon everybody. Mr. Neeraj, has given you a comprehensive overview of the operations of the company. I suggest you may like to go straight to the Q&A. But before that I must point one more thing in these results from this quarter onwards we have changed. We have lightly tweaked our ECL policy to be to have a more conservative accounting approach. Accordingly, either to we were providing ECL only to the extent of legal suits filed. Henceforth we shall be using ECL provisioning or we shall be providing for ECL for all legal notices served. This means that in this quarter another INR24 crore of additional provision has been made towards ECL based on legal notices issued. I must care. I must caution you guys that these are provisions only for a more conservative accounting approach and do not mean that they are debts written-off.
We shall be following this policy. So Accordingly, apart from Mr. Neeraj Akhoury’s announcement of about INR31 crores of one time VRs. You may also like to add about INR24 crores of one time such provisioning. In addition, the numbers are there. You may like to ask your questions please. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Yeah. Hi, good evening. So, yeah, so congratulations on a great result. Firstly, so my first question is on volume actually. So we have seen generally industry kind of do high-single digit volume growth of late. So but our volume rate still remains in low-single digits. So wanted to understand that what is the outlook now for volume for FY26 particularly as we are commissioning large capacities in Q1 also?
Ashok Bhandari
Murarka Ji. Let me make it very clear to you. Right after Q124, ’25 we had said that our strategy is not to be the biggest volume player in the industry but be the most profitable player in the industry. Accordingly, a constant trade off has been undertaken between price and volumes. And since price is what are the resultant of the price that is EBITDA or net profit is available to the shareholders, we thought it better to concentrate on profits apart from instead of concentrating on volumes. And you know that it is a proven fact that you don’t in a capacity overhang scenario you don’t get price and volumes both.
So you have to do a trade off, come to a cutoff point and see at what volumes you can maximize your profitability because that is the only distributable item in our hands. We don’t distribute revenue, we distribute profits. And I’ve been telling you this for last three quarters, but then so be it. And as far as the volumes, as far as the volume for ’25 ’26 is concerned, Mr. Akhoury has clearly said that we expect 6.5% to 7.5% or 8% growth. I would be slightly more aggressive. I would like to say that we may do about 39 million tons for this year. However, the strategy of trade between volume and profit will be foremost in our minds. And as the, as the year progresses we will keep you updating.
Amit Murarka
Understood understood. So when we pursue, like you’re saying, a high single digit volume growth is the target maybe this year, which broadly understand will be in line with industry. So then is it fair to say that the capacity utilization will stay subdued for you? I mean which we have been seeing this to be in the range of 65 odd percent for the last year or so. So then with new expansions also will remove?
Ashok Bhandari
You have to understand the rationale of our capital expenditure or capacity creation. Please understand that the delta between the treasury return which may be say 10 years he sake and inflation is hardly about 2%. So we are creating an option at 2% for additional capacity. Because, if we get two quarters like January, March, all these option costs are taken care of. So at 2% option we are creating capacity to see and generally the cement demand should be more vibrant than what we are claiming today. And that is because of the fact that the demand has not been as robust as it should have been in April until first week of May which was because of the war. So we are slightly cautious give us some time. The demand should pick up. We are positive about it. No growth is possible without cement and steel. So we expect that in two, three years time we should go back to about 75%, 85% capacity utilization.
Amit Murarka
Understood, that’s very clear. Just the last question now on the Q4. So I see that the purchase of traded good is a bit elevated in this quarter. Is it some kind of earlier I remember some coal was sold overseas. It’s something similar this quarter?
Ashok Bhandari
It must be similar. I will check. I’ll take and let Mr. Jaju or Mr. Jain respond on that. I please appreciate that I do not go into such detailed analysis of numbers. If you need or if you can wait, send a mail to us and we’ll reply you accordingly. But it should be in line with the trend.
Amit Murarka
Okay sure. Fine, I’ll just come back in the queue. Thank you.
Operator
Thank you so much. [Operator Instructions] The next question is from the line of Satyadeep Jain from Abbot Capital. Please go ahead.
Satyadeep Jain
Hi. Thank you so much. Mr. Akhoury. Just wanted to first question would be on the branding strategy. You joined Shree Cement about two and a half years ago. So the intent has always been to close the pricing gap with others. Initially different strategies then gave the desired result. But last few months we’ve seen a change. Just want to see what different strategy you adopted. Now in the past few months doesn’t seem like it’s just withholding volumes because you’re seeing the pricing gap in certain markets close with the peers.
So what different have you done in the last few months which you didn’t do earlier? And is that strategy different across regions? Because as for the channel checks, it seems the gap has closed in certain regions and certain regions still needs to close. So just the overall change in strategy. And how is it working in different regions?
Neeraj Akhoury
I don’t think, we had described our strategy and I think we’re hearing from us in last two, three quarter call that we are giving lot of push to our premium products and with the intent that we should improve our brand equity scores, we should create the right brands that makes an impact in the market. That strategy of creating a better brand equity score through several means, including new products, including impact on quality improving, including bringing the right amount of technical work in the field, all that is continuing. It’s a journey and as we find that our brands are becoming more strong, we are pushing for a better pricing as well. And I think as I said, this is a journey and it will take some more time before we really start talking about it that we are one of the best positioned players in the industry.
Satyadeep Jain
And how is that positioning different in different regions do you think? Its’ similar in.
Neeraj Akhoury
I think Pan India market the approach will be same in terms of brand equity and improving the brand scores that will be absolutely same. The approach will not be different in different markets. We may have different brands in different market but not the approach. Approach fundamentally will remain same and that is to use our brand equity to better our price positioning.
Satyadeep Jain
Okay. Second question on the capacity you’re creating especially in north you have one near Pali and the other one coming up, the other one in Etah. So they on, I mean it looks like on the outside similar market north with distance of 500 kilometers. But just wanted to understand with it are you looking to go further Eastern side of Central, Eastern side of UP and with the Pali one are you looking at maybe going to Gujarat? So what are the target markets? You are because they’re both north. But are you looking to get to Central and Gujarat from these markets?
Neeraj Akhoury
So clearly even Etah being closer to Agra towards it is closer to the Central UP markets as well as some of the East UP markets and therefore Etah will be. We will try to use Etah capacity to better our market shares in the very high demand markets of Central and East UP. As far as north plants are concerned, we still have rooms in many of the northern markets including states like Jammu & Kashmir and states like Gujarat and states like West MP and some other markets as well. So that effort will continue. So both plants are will be catering to different markets. But we are excited that we will be entering Central UP and East UP using Etah as a base. It’s a large plant and it will help us to augment our market shares in these markets.
Ashok Bhandari
If I may further add the putting the Indus Valley Treaty in advance. A significant scope exists in creating necessary infrastructure to control the flow of waters. That means much greater demand in North India. Please appreciate that.[Speech Overlap]
Satyadeep Jain
So just the one unit you have. Maybe you’re looking. You were looking to do it in Pali and expand it. So this new unit that you will think will be considering. Mr. Bandari, what you just said. Catering to demand in those particular pockets.
Ashok Bhandari
My dear friend, you can set up a cement capacity only if you have limestone. If there be limestone in Jammu & Kashmir, we’ll certainly set it up there.
Satyadeep Jain
For that. I understand, it’ll come from Nawalgarh or one of the yield. Or maybe I was just trying to understand.
Ashok Bhandari
It will be for north players in general. And this gives us confidence in our 11th unit in RAS or Jaitaran and wherever you want to call it. That we should be able to service it nicely.
Satyadeep Jain
Okay. Thank you and wish you the best.
Operator
Thank you so much. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi sir. Good evening and congrats on good set of numbers. First some housekeeping numbers. If you could share what was the fuel cost per kl? Trade mix and lead distance?
K.K. Jain
Yeah.
Ashok Bhandari
Introduce yourself.
K.K. Jain
Yeah. Myself is K.K, Jain. Fuel cost for KCL[Phonetic] for this quarter is 1.48 against 1.82 of March ’24. And
Rajesh Ravi
Right. And lead distance and trade share.
K.K. Jain
Lead distance is 446 for this quarter against 435 for March ’24.
Rajesh Ravi
And trade share?
K.K. Jain
Trade share is 73%. It is same in the.
Rajesh Ravi
Year-on-year right. What was the cement realization Neeraj Sir mentioned during the opening remarks?
Ashok Bhandari
Yeah. Cement realization for the quarter is INR4,006.8[Phonetic] rupees per ton.
Rajesh Ravi
Sorry missed it sir.
Ashok Bhandari
INR4,758.
Rajesh Ravi
Okay. INR4,758 okay. Against?
Ashok Bhandari
Against this ’24. It’s a INR4,554.
Rajesh Ravi
INR4,554 in December. right. And INR4,554 in December?
Ashok Bhandari
And in March ’24 it was a INR4,722.
Rajesh Ravi
Yeah. And what is the incentive? We have approved for this full year or we have booked in revenues?
Ashok Bhandari
The figure is not presently available. We will share it with you.
Rajesh Ravi
Okay. And sir, what is the thought process going forward in terms of expansion? We have 3 million ton which is deferred and 3 million ton in Kodla, this Bangalore grinding unit. I think last call we had mentioned that you know the clearances are awaited. So you know what is the status on that? And the 3 million ton at Rajasthan which you have deferred?
Neeraj Akhoury
So you know, as I said what we are, we have put up, we are announcing. Yeah. Several locations where we already in the advanced levels of preparedness now to launch an expansion. At the right time. We’ll be very happy to share with all of you once we start the work at those sites.
Rajesh Ravi
Okay. So currently whatever you have announced is for expansion still FY26. For expansions beyond FY26, you would be making announcements from. Right?
Neeraj Akhoury
Yeah. Yeah.
Rajesh Ravi
Okay. And total capex for FY26 which is earmarked on the ongoing projects.
Neeraj Akhoury
About INR3000.
Ashok Bhandari
Yes, it’s about INR3000 crore.
Rajesh Ravi
INR3000 crore. Great. Sir, I’ll come back in queue. Thank you.
Operator
Thank you so much. The next question is from the line of Raghav Malik from Jefferies. Please go ahead.
Raghav Malik
Yeah. Hi, Thank you for the opportunity. Just a question on pricing. So you mentioned that average realization for cement are higher about 5% sequentially. So is it possible to bifurcate that between North and East to give some idea of pricing in these two regions for the industry?
Ashok Bhandari
If I may reply. You see basically, if we shall share with you regional prices. But then you are generally aware that North was quite vibrant market and East had picked up quite a lot about since last two months. South has also substantially picked up. So I’ll ask Mr. Jajoo to look at the numbers and send you a mail or you send him a mail and he’ll reply to it. If he has the numbers just now, he’ll share it. Give me a minute.
Mr. Jajoo has some numbers. He’ll speak.
Subhash Jajoo
Yeah. The realization in Northern market it is up as compared to year-on-year it is up 3%. For East it is up by 1% and south it is down by around 5%, 6%. And for quarter-o- quarter the northern reaction is up by 4%. 8% for East and 2% for South.
Raghav Malik
Okay. North you said 4% and East is 8% sequentially.
Subhash Jajoo
Yes yes.
Raghav Malik
And if like how is this spread in April, you could share that as well?
Subhash Jajoo
I think it will be better, if we discuss this in the next quarterly call.
Raghav Malik
Sure, sir. Thank you. That’s all from my side. Thank you.
Operator
Thank you very much. The next question is from the line of Shravan Shah from Daulat Capital. Please go ahead.
Shravan Shah
Yeah. Thank you. Sir. Just continuing the previous question just on a directional front. Is it fair to say from the average of the fourth quarter for us the realization would be a 2% plus kind of of Q-o-Q till now? On a broader sense.
Ashok Bhandari
My friend, a broader sense does not. It may give you some kind of a directional picture. It is better you wait for one more quarter. We come back with firm numbers. What is the point in telling you it is and then explaining it is 5% or it is 1%. Let us be realistic. We have not taken anybody up the garden path. We would like to deliver first and then explain, instead of proclaiming first and explaining.
Shravan Shah
Yeah. No, no issues sir. No issues. Sir. If you can share a couple of housekeeping data point this quarter in terms of the sales mix Northeast and South and if possible for entire full year. If you can share? Yes, I am leaving to Mr. Jain to explain to you. Okay, just give me a minute.
K.K. Jain
Yeah, but yeah. This blended ratio for the quarter is 59%.
Shravan Shah
Product mix, volt Northeast, West, South?
K.K. Jain
Yeah. The North India sale is 54.7%. East is 32.7% and the South is 11%. Its total is 98.4%.
Shravan Shah
Okay, okay, got it. Got it. And in terms of blended share and capacity utilization for even, even region wise is possible?
K.K. Jain
It is 72% at a company level and 74% in North, East is 79% and the South is 51%.
Shravan Shah
This is the blended. Sir, you said?
K.K. Jain
Yeah.
Shravan Shah
Okay, okay, got it. And in terms of the premium share. So obviously we have reached 15% plus. So how we want to take it by end of this year?
Ashok Bhandari
Well, my friend Bandari here. Again you are asking us to proclaim something. Please. We have said that we are. We have set our direction towards this. Let the numbers evolve over the quarters and we’ll come and explain you every quarter what we have achieved. What is the we don’t? Please understand. In my last 40 years with this company, I have never proclaimed and then explained. I have delivered and explained. Please leave it like that. It is far more easier for us and you to come with real data and come on real data.
Proclaiming something and then you are extraordinating it into a worksheet and then explaining us or asking us for explanation probably is not a good strategy in my opinion.
Shravan Shah
Yeah. Lastly, sir, depreciation for FY26 would be how much? Because we will be adding a decent in terms of the capacities.
Ashok Bhandari
Listen to me. Listen to me. It is about INR3,000 crores to INR3,200 crores. [Speech Overlap]
Shravan Shah
Depreciation also?
Ashok Bhandari
I heard you correctly. I have given you depreciation numbers only.
Shravan Shah
Okay, okay, okay, sir. Thank you. Thank you. And all the best.
Ashok Bhandari
Yeah.
Operator
Thank you so much. The next question is from the line of Mr. Naveen Sahadev from ICICI Securities. Please go ahead, sir.
Naveen Sahadev
Yeah. Thank you for the opportunity. Sir, recently there was an update about limestone mines being granted in Jaisalmer. I think just a few days back there was an exchange notification to that effect. And in the past I think we have had some mines being procured under auctions in Gujarat as well. I believe this one, since it did not mention anything about auctions, I’m assuming it is under the old regime.
So my question was, is it fair to assume that in the run up to 80 million tons one of those capacities is possible to come up either in Gujarat or in Jaisalmer or both? Thank you.
Ashok Bhandari
Indeed, the Jaisalmer limestone was awarded to us in 2008. And then it got caught in the quagmire of various legal appeals and counter appeals. Final order has come to us about week or 10 days back. And it is certainly within our radar to as a part of our expansion strategy, Gujarat we are working. And many other sites we are working.
Naveen, you know me, will keep on updating you at right apart time. Yes, they are part of our overall expansion strategy for sure.
Naveen Sahadev
Thank you. My last question, what is the net debt as of as at the end of March ’24?
Ashok Bhandari
Since when you started using the term [Speech Overlap] INR5400 crores roughly.
Naveen Sahadev
Helpful. Thank you. Thank you.
Operator
Thank you very much. The next question is from the line of Moksh Ranka from Aurum Capital. Please go ahead.
Moksh Ranka
I would like to know the total sinker capacity and the total limestone reserve that we have. Hello, Am I audible?
Operator
Yes sir, you’re audible.
Neeraj Akhoury
Can you speak really loudly please?
Moksh Ranka
I would like to know our total clinical capacity and our total limestone reserve that we have?
Ashok Bhandari
We would not like to be very vocal on our limestone reserve. We would certainly point out to you that our first reserve expires in 2046 sometimes, we have sufficient limestone to service all our existing capacities and our new expansions coming up. Up to that time for sure. Maybe more. We may not like to put a number ahead.
And your first part of the question was that you had two questions. One was on limestone.
Moksh Ranka
Yeah.
Ashok Bhandari
Mr. Jajoo, will give you the clinker capacity.
Subhash Jajoo
The current clinker capacity is 36.7 million ton. And by the end of financial year ’25 ’26 it will become 44 million tons.
Operator
Thank you so much. The next question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.
Rahul Gupta
Hi. Thank you for taking my question. I have a strategy related question. I understand the idea is to maximize cash earnings. And towards this we saw the management and company did very well shifting towards higher pricing at the expense of volumes in the recent quarters. Now that you have guided for high single digits volume growth vis-a-vis 6.5% to 7.5% for the industry. How are you looking at cement pricing during the year? Are you turning a little bearish on cement prices from here on? In lieu[Phonetic] of you looking to grow faster than the industry?
Thank you.
Ashok Bhandari
Now Mr. Gupta, let me put it like this. You cannot in a supply overhang scenario enjoy the cake and have it too. You have to play an equilibrium between volumes and prices. We have told you we have never aspired to be the number one cement seller in the country. We aspire to be the most profitable cement company in the country.
Top line is never in the command of any commodity manufacturer or supplier. We’ll take whatever the price is. We’ll try to maximize the profit, cash profit and net profit through a proper mix of volume and price prevailing at that time. so we will not [Speech Overlap]
Rahul Gupta
I understand that. I’m trying to understand how to look at industry pricing through the year. We have already seen good pricing trends over the past few months. And a lot of capacity is expected to come in the system. So in lieu of that just trying to understand how to look at cement pricing through the year? Nothing related to Shree for that [Speech Overlap]
Ashok Bhandari
Mr. Gupta, please appreciate that. Nobody sets up a capacity with the hope that he will snatch the market share. He will have to fight to get the market share. And if he fights then he really needs very deep pockets. You can’t fight without resources. So who, which is the player we are talking about, what his strategy will be, what region he will be coming into and what kind of financial strength it has. Has to all be taken into consideration to understand what his pricing strategy may be. But then please understand that all existing pair balance sheets are quite strong. And they can take anyone on head on as a matter of fact in matching the prices.
Nobody likes to give up market share in a commodity business. So it will be very difficult for us. But having said this, I have lot of confidence into the growth prospects of the industry and general growth prospects of the country. So I expect the prices should hold, not crash.
Rahul Gupta
Great. Thank you so much. This was my question.
Operator
Thank you so much. The next question is from the line of Jyoti Gupta from Nirmal Bang. Please go ahead.
Jyoti Gupta
[Indecipherable]
Operator
Mam your voice is not clear.
Jyoti Gupta
Is it clear now?
Operator
Yes mam, please speak something.
Jyoti Gupta
Yeah. Good evening everyone. Good set of numbers. Just one question from my side. All your press releases. I understand we’d be setting up something like 50 million tons by FY26. I just need clarity on that. Correct me if I’m wrong. If it is 15 million ton. If Shree Cement is coming up with. I just need to understand by when? And do we have the entire 15 million ton coming by the end of. Sorry, staggered to the next year as well? Just on that.
Ashok Bhandari
You have to understand two things. The capacity you are talking about may be the ballpark number. But then how much of additional clinker and how much of grinding is being set up? You have to consider them both separately.
Jyoti Gupta
Exactly. Sir, could you please provide me with the breakup?
Ashok Bhandari
I will hand over the mic to Mr. K.K. Jain to reply to how much of clinker is being added and how much of grinding is being added?
K.K. Jain
Yeah. Our present clinker capacity is 36.7 million. And in next in the current year that is ’26 the capacity we are adding 7.3 million ton clinker capacity. By end of ’26 the clinker capacity would be 44 million.
Same way in the cement capacity we presently we have 62.8. This includes the one unit which we have started at Etah and another grinding unit at the Raipur. And in ’26 we are two newer grinding unit will come. One at the Raipur and one at the Kodla. And another is at Rath site or Jaitaran. So this would be around 6 million. The total capacity by ’26 would be 58.8 million.
Jyoti Gupta
Sir could also provide the timeline I completely understand the capacity breakup. Could you give me the timeline? Is it the end of five months that you’re coming up or is it anticipated anytime during the next couple of month [Speech Overlap] in the second quarter.
Ashok Bhandari
Jyoti, this is Bhandari.
Jyoti Gupta
Yes sir.
Ashok Bhandari
Clinker and grinding additional except whatever has been commissioned should be done by HY26.
Jyoti Gupta
Okay thank you. So which means the supply would be FY27. That is all my question. Thank you so much sir.
Ashok Bhandari
All right, thank you.
Operator
Thank you so much. The next question is from the line of Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Yeah. Hi. Thanks for the opportunity again. Just had a question, a data related question. Like could you kind of spell out what was the other operating revenue in the quarter as well as maybe FY25?
Ashok Bhandari
We have INR150 crore another income. Other operating income.
Amit Murarka
Other operating income right, INR150 crores it is?
Ashok Bhandari
You hear from Mr. K.K. Jain.
K.K. Jain
Other opening income is included in our revenue and it is not — we will give you offline please. You just send mail.
Amit Murarka
Oh, okay, okay, sure. Also like if you could spell out clinker sales also in Q4?
K.K. Jain
I don’t have data.
Ashok Bhandari
We will sell you offline. please
Neeraj Akhoury
It is very very minuscule. yeah.
Amit Murarka
Okay. Very minuscule. Okay, sure. That’s all. Thank you.
Operator
Thank you so much. The next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead.
Satyadeep Jain
Hi. Thank you for the follow-up. Just one question on future greenfield expansions. As we can see from limestone looking at Jaisalmer and Kutch, what is the rationale for this? I know you already have multiple lines in raspy hour and you have Nawalgarh also. So that would mean that there is limited potential there for expansion that you’re expanding out into Jaisalmer. And I just want to understand this whole process?
Ashok Bhandari
No, no, no, no. You are putting a card before the horse. We have not said that we will not expand in other regions of North. We have just said that Jaisalmer we have won the bind and it is certainly on our target now to expand. That doesn’t mean that I am not going to expand at Jaitaran or some other or Nawalgarh or any other place where I have livestock. It has to be a constant dynamic study of how you how the market behaves, how the market evolves and what pricing power and what premium product production we can push. It has not.
Please do not consider our thinking to go to Jaisalmer is because of constraints on the limestone reserves at all other North plants we have. Please don’t miscontrue it like that. I mean I was [Speech Overlap] We have space Jaisalmer is a virgin area. How much market we can establish there profitably, what kind of lead distances will be there? All these are under study. But since we have got a limestone which is really a difficult resource to get nowadays, we have taken it in our strategic plan process and someday we will come up with a concrete plan of setting up in Jaisalmer.
Satyadeep Jain
Okay, thank you so much.
Operator
Thank you so much. The next question is from the line of Girija from YES securities. Please go ahead.
Girija Shankar
Good evening sir. Thanks for taking my question and congratulation for a good set of number. In fact it’s a great setup number. I can say the. My first question is that what is our clinker capacity utilization for a whole year?
Ashok Bhandari
Mr. Jajoo
Subhash Jajoo
Yeah. For the full year the clinker capacity utilization is around 68%. And for this quarter it is 70%.
Girija Shankar
Okay, so if I see from past few years, three years, I can say our capacity utilization has actually declined when other larger players are doing actually 70%, 75%, 80% of capacity utilization in our key market region. So again on top of that we are adding you know, more capacity and it’s a good thing that we are going to capture the market share by you know installing $80 million to becoming %80 million tons of capacity. But if in case we are not much focused on the volume in terms of capacity utilization, higher capacity less than how it is going to help more in the profitability.
I understand the, that we are more focused on you know cost reducing the cost structure and you know focusing on the pricing. And if I’m not wrong, we do not have any you know, kind of control on the pricing. But yes we have control on the cost structure but top line growth we can expect from the volume growth as well as more into pricing. So barring pricing scenario how we are going to see this new capacity addition, how it is going to pan out and what’s your strategy? That we can have a great volume so that our profitability will be more? Thank you very much.
Ashok Bhandari
This is Bhandari here. Number one. You are assuming that there is a presumption in your entire premise that India will not grow or cement demand will not grow. That is the underlying because, if it is going to grow then everybody’s top line will grow mine too. The difference between everybody’s growth in top line and our growth in top line is we don’t want to be highest volume producers. We want to be the highest profit makers which we have proven in spite of falling capacity utilization or whatever. So please understand that our offline will grow in consonance with growth in market.
We will not be laggards. We may be slightly ahead of setting up capacity but then please understand we don’t borrow. We utilize our own cash resources to set up capacities. We are the lowest cost capacity creators. I have explained the concept of our trying take the option at a delta of 2%.
Girija Shankar
Okay.
Ashok Bhandari
Profit of production, cash comes out of marketing. We must set up and produce only if we can get cash from the marketing in a profitable manner. It is a very difficult question my dear friend that you sit down, do an excel sheet and extrapolate or interpolate some.
Girija Shankar
Okay. Yeah. Thank you. Thank you very. Thank you very much. And last question. What is the non-trade mix this time?
Ashok Bhandari
I’m giving it to Mr. Jain to answer that.
K.K. Jain
Yeah. It’s a non-trade is 27% this time.
Girija Shankar
Sorry.
K.K. Jain
It’s a trade sale is 73% and non-trade is 27%.
Girija Shankar
And last year it was in FY24.
K.K. Jain
Same in last. Last quarter also previous quarter in December ’24 and the March ’24.
Girija Shankar
Okay, okay. Thank you sir. Thank you very much.
Operator
Thank you so much. The next question is from the line of Uttam Kumar Srimal from Access Securities Limited. Please go ahead.
Uttam Kumar Srimal
Yes sir. Thanks for the opportunity and congratulations on a good set of numbers. Sir, my question pertains to RMC business. So what is the current status of RMC business? How many plants we have set up or going to set up and what kind of revenue we are expecting from this particular business?
Neeraj Akhoury
So as we mentioned earlier also that RMC is a new foray for us. It’s about a year or so that we have started this division. For us we are currently operating about 15 plants. But the plan is to grow RMC rapidly. At this moment we are looking at various markets where more and more units will be set up and this process will continue.
I’m happy to say that there are several plants in our RMC division which are already EBITDA positive which is they have achieved in a faster ramp up of those units especially in the markets of Mumbai or markets of Hyderabad and this will continue. So we expect that over a period of time we will have at least 50 odd RMC units. But at this moment I will not be in a position to tell you the timelines for that. Yeah, this is something that we will continue to do and every quarter we will be able to give you an update on how many RMC plants we have.
Uttam Kumar Srimal
Sir, answer two book keeping questions. Sir, what was our queries this quarter?
Operator
Sorry to interrupt but you may please return to the question queue for follow up questions.
Uttam Kumar Srimal
Yeah, yeah, yeah. Thanks a lot and all the best.
Operator
Thank you so much. The next question is from the line of Ashish Jain from Macquarie. Please go ahead.
Ashish Jain
Hi sir. Good evening. Sir, my question is more on, you know, the cost structure in the three regions. can you give some color on how the cost acts up across the three regions. One on manufacturing basis and secondly possible on delivered cost basis also including freight?
Ashok Bhandari
My dear friend, this is Bhandari here. Of course these data will be available and we’ll be happy to share. But can you please address my curiosity on your asking such region specific cost numbers?
Ashish Jain
Sir, one reason is, you know like going ahead. Yeah, yeah, I can, I can. Sir, am I audible?
Ashok Bhandari
Please understand. It is the net profit at company level which is available as surplus to the shareholders. Region. You leave it to us. We will set up capacity Wherever it is more profitable to us. You must have some faith in our business acumen. We will tell you overall numbers. Please don’t ask us questions which may have strategic importance to us.
Ashish Jain
Right, sir, I get that, and let me. My only point was that going ahead as we expand capacity in let’s say South or in West then the share of those regions would increase. I’m not looking at absolute number. My idea was more to understand, the relative positioning of region if possible? I understand the strategic importance.
Ashok Bhandari
I very much appreciate. But please understand that if I am keep. I am using my asset side of the balance sheet. Completely fungible between fixed asset and cash. Any delta in profitability irrespective reason will be incremental to my crocky.
Ashish Jain
Right.
Ashok Bhandari
Okay. So we will be maximizing our crocky.
Ashish Jain
Right. Okay. So secondly, just power cost this quarter. When I see it on a per ton basis, it has gone up. But know look seems like our power revenues have also gone up quite a bit sequentially.
Ashok Bhandari
Power. Where? Where did you get the power revenue? I don’t have that number with me. Because it is abysmally small. It is abysmally small.
Ashish Jain
But then what explains the increase in power cost sequentially because your.
Operator
Sir sorry to interrupt. [Speech Overlap]
Ashish Jain
This is a continuation of the same question. Can I go ahead?
Operator
Sir you may join the question queue, okay.
Ashish Jain
Sure, not a problem. Thank you.
Operator
The next question is from the line of Rashi from Citigroup. Please go ahead.
Rashi
Thank you. Just one question. On a sequential basis, how is pure cement cost moved?
Ashok Bhandari
Come back again. You want cost structure sequentially between December ’24 and March ’25. Am I correct?
Rashi
Yeah pure. Just pure cement. How that?
Ashok Bhandari
Yeah. Pure I will give it to Jajoo. He will be able to explain to you.
Subhash Jajoo
We don’t have that data readily available. Rashi will. I will send it to you separately.
Rashi
Okay.
Subhash Jajoo
We have the blended cost. I have the blended cost with me. Which is roughly 2% down, 2% up quarter-on-quarter. And it is around 3% down year-on-year basis. But you want specifically for cement. So that is not available right now.
Rashi
Yeah. So blended is up, right? On a sequential basis.
Ashok Bhandari
Yeah.
Rashi
So that’s what I was trying to understand. On a pure cement basis will it be down or will that also be up?
Subhash Jajoo
I am just check up that. And then let you know.
Rashi
Thank you.
Operator
Thank you so much. The last question is from the line of Tushar Chowdhury from PL Capital. Please go ahead.
Tushar Chowdhury
Yeah. Thanks a lot for the opportunity, sir. And good set of numbers. Sir, I just wanted to know the role rate mix for Q4 and full year and pet coke mix also.
Ashok Bhandari
Before I ask Mr. Jain to explain all these numbers to you. [Foreign Speech] I know Prabhu Daslina darp for maybe 40 years. Mr. Neerajokhori is. When he was in Bombay he was a neighbor to Amisha Vora. Please understand that sometimes when you say good set of numbers it disheartens us. This kind of. What prevents you from saying that these are the best set of numbers you have seen? Anyway, I’m giving it to Mr. Jain to answer to your other question.
K.K. Jain
Yeah. The railroad mix is rail percentage is around 11.3% for this quarter. And for full year is 11.8%. In regard to the pet coke percentage it is 95% pet coke and the rest is coal and the alternate fuel.
Tushar Chowdhury
And full year?
K.K. Jain
Full year is almost — 3% is the coal and alternate fuel and the rest is the pet cock.
Tushar Chowdhury
Okay. Okay.
K.K. Jain
It’s around 97%.
Tushar Chowdhury
Just wanted to ask the status of railway sidings which we talked about in first quarter. We are going to cover all the units with railway siding. I think for ’25 we are targeting Purulia and Patas.
K.K. Jain
Purulia, has already been done.
Tushar Chowdhury
Okay.
K.K. Jain
Patas is also commission.
Tushar Chowdhury
Commission.
K.K. Jain
Both are fully operational and rest. I think we have said by mid ’27 or early ’28 will be.
Tushar Chowdhury
Okay. Thanks a lot sir. And best of luck.
K.K. Jain
Thank you.
Operator
Thank you so much. I now hand the conference over to management for closing comments.
Neeraj Akhoury
Thank you everybody. Thanks. And I think some of you or many of you for complimenting us though in a very polite language on our results. It’s as I said, it is a direction, it’s a strategy. In execution, it’s a journey. And we are happy that we are seeing some good lights but not reached the destination as yet. Hopefully when we meet you next time we’ll have more smiles and more news to share. Thank you everybody for joining us. Gratitude from Shree Cement Limited. Thank you.
Operator
[Operator Closing Remarks]