Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Shree Cement Limited (NSE: SHREECEM) Q4 2026 Earnings Call dated May. 06, 2026
Corporate Participants:
Neeraj Akhoury — Managing Director
Ashok Bhandari — Senior Advisor
Kamlesh Kumar Jain — Senior Vice President Accounts
Analysts:
Navin Sahadeo — Analyst
Pinakin Parekh — Analyst
Rashi Garg — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Sri Cement Limited Hosted by ICS securities Limited. This conference call may contain forward looking statement about the company which are based on the beliefs, opinion and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation.
Conclude. Should you need assistant during the conference call please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Naveen Saadil from ICIC Securities. Thank you. And over to you sir.
Navin Sahadeo — Analyst
Thank you, Dhanish. Good evening everyone. On behalf of ICICI Securities I welcome you all to the Q4FY26 earnings call of Sri Cement Limited. From the management, we have with us Mr. Neera Jaffoori, Managing Director, Mr. Ashok Bhandari, Senior Advisor and Mr. Subhash Jaju, Company CFO. So without any further ado I hand over the floor to the management for their opening comments. Over to you sir.
Neeraj Akhoury — Managing Director
Thank you. Thank you, Naveen. Good afternoon and good evening. Ladies and gentlemen. I welcome you to the earning call of Sri Cement Limited for the quarter and year ending March 26th. So 202526 was a good year. A good year for us. Despite the challenges posed during the Middle east in March. In March 26th quarter on a sequential basis domestic cement sales volume increased by about 25% from 8.48 million tonnes in December 25 to 10.56 million tonnes in March 25. While year on year growth was at 11%.
Total volume including clinker sales also jumped by about 9.4% from 9.84 million tons tons to 10.77 million tonnes while increasing 23.2% on quarter. On quarter basis realization were at Rupees 4725 as against 4652 in December 25 registering an increase of 1.6% during the quarter. Operating EBITDA also increased by 34% from Rupees 902 crores to R12.12 crore. EBITDA per ton increased from Rupees 10.32 to Rupees 11.25 in March 26. Capacitization during the quarter stood at 66% as compared to 56% during December 2025.
For the full year, sales volume including Shi Cement east increased by 2.2% from 35.6 million tonnes to 36.4. Our strategy which we took for the full year helped in increasing our realization from rupees 4569 per tonne last year to Rs. 4732 per tonne in 2025-26 registering an increase of 3.6%, total operating EBITDA increased by 11% from rupees 3814 crore to rupees 422 crore. Excluding a one time impact of rupees 80 crore EBITDA per ton stood at rupees 11. 61 as against 1071 last year. Our other company Union Cement performance has also improved significantly during the year 2526.
On back of robust demand and continuously improving pricing scenario, sales volume were up by 18% from rupees 38.61 lakh tonnes to 245.65 lakh tonnes. Revenue was up by 39% during the year from AAD 624 million to AAD 870 million. Since last two months due to the tension pivoting in the Middle east, sales have slowed down but with ceasefire situation is gradually coming back to normal, we believe once peace is restored demand would bounce back Due to the reconstruction work. The unit cement continued with its impressive quarterly performance.
Total volume increased from on a yearly basis from 10.72 lakh tonnes to 11.65 lakh tonnes regarding a growth of 9% on Q on quarter. On quarter basis sales revenue was up by 18% from 82. 10 million to 82. 47 million on a quarterly basis. During the quarter the company commissioned its integrated project of 3.65 million tonnes clinker capacity and 3.5 million tonnes cement capacity at Kodla, Karnataka. With this the companies install cement production capacity in India including its wholly owned subsidiaries increased to 69.3 million tonnes.
Standing its position as India’s third largest cement group, the work on setting up a cement mill of 2.5 million tonnes in Union Cement UAE is progressing well and is scheduled to be commissioned by September 26th. To further expand our capacity, the company is setting up an integrated cement plant with clinkers capacity of 0.95 million tonnes and cement capacity of 0.99 million tons in the state of Meghalaya. During the quarter company also incorporated a wholly owned subsidiary with a purpose to establish and operate cement blending, storage and packing facilities in Mauritius.
The company continues to actively and strategically pursue multiple expansion opportunities. Currently at various stages of pre project development to accelerate capacity buildup and firmly position to achieve its growth milestones. The Company is rapidly expanding its RMC business with 26 operational plants at the end of 2526. During the month of March 26, company has inaugurated 10 new RMC plants which are currently under commissioning. With the commissioning of these plants, the total RMC plant count will increase 36 plants significantly extending the company’s operational footprint at the start of financial year 27, the company continues to focus on sustainability initiatives.
Key highlights of the same are as follows. The Company’s share of green electricity in total electricity Consumption stood at 61% in Q4.26 up from 59% on Q4.25 including its wholly owned subsidies. In India, which is one of the highest in Indian and most probably global cement industry, the Company is consistently ramping up its green power generation capacity which currently stands at 666.5 megawatt including in its wholly owned subsidiaries in India. All the Company’s manufacturing locations are zero liquid discharge treating, recycling and reusing 100% of wastewater generated from its operations.
These efforts, aided by a good rainfall, have enabled the company to maintain its water positivity index to more than 8 times in 2526. The company continues to get AAA rated by leading rating agencies of India. Last year we also bought our long term foreign currency rating done by Care Hedge Global. The rating given was BBB plus which is stable considering the strong cash position. The Board of Directors of the Company have recommended a final dividend of rupees seventy per share in addition to the interim dividend of rupees eighty per share for the year 2526 declared in October 25.
Total dividend for the year stands at rupees 150 per share, representing a 36% increase over the 110 per share dividend paid in 2425. The final dividend shall be subject to approval of members over the next in the next annual General Meeting. India’s macroeconomic environment remains resilient, supported by steady domestic demand and continued policy focus on infrastructure led growth. Union Budget 2627 has reinforced this momentum through a sustained thrust on public capital expenditure with investment in roads, railways and urban infrastructure expected to drive construction activity and cement demand.
Favorable employment conditions, stable inflation and supportive fiscal and GST rationalization measures further strengthen sector’s fundamentals. Against this backdrop, the cement industry remains well positioned to benefit from healthy demand growth in the medium term. However, the geopolitical conflict in Middle east and forecast of moderate monsoon conditions may act as Headwinds for the sector and may impact its growth momentum in the short term. With this, I will now open the floor for the Q and A.
I have with me Mr. Ashok Bandari, Mr. Subhash Jaju, Mr. K.K. Jain and Mr. H.S. Khanderwal to take you through the Q and A session. Thank you everybody. And again, warm welcome to Sri Cement’s Quarter 4 webcast.
Questions and Answers:
Operator
Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requesting handsets while asking a question.
Ashok Bhandari
Before we start the Q and A. Can I make a point please?
Navin Sahadeo
Yes, please go ahead.
Ashok Bhandari
Good evening everybody. I would like you to recall two specific public communication we had made. One was at the end of June 25 quarter when Mr. Bangar had gone on television saying that he expects the growth for Swiss Cement in last financial year between 2 to 3%. We have delivered 2.2%. The second attention I would like to draw is towards the last quarter’s call where unfortunately Mr. Yakouri could not attend. Where I have said that we have moved to a more stable pricing platform narrowing the gap between the topmost player and us by almost 20 rupees a bag.
15 to 20 rupees a bag. And now we will be chasing volumes. We have delivered on both these accounts which explains our ethos of delivery and not proclamation. Now I open the floor for any questions you have.
Operator
Thank you so much, sir. Reminder to all the participants that you may press Star and one on their touchdown telephone in order to ask a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Rajesh Ravi from HDFC Security. Please go ahead.
Navin Sahadeo
Hi sir. Good afternoon. Good evening. And congrats on strong volumes and decent healthy margin performance. Continued margin performance. So my question pertains to what next in terms of Capex and the class cash surplus which is further increasing into strong, you know, internal accrual generation.
Ashok Bhandari
Okay, Ravi Bhattari here. As far as Cupex is concerned, as on date, as Mr. Akhori has already informed you, we are pursuing three distinct places. One is we will be increasing our RMC plants during 26, 27. Number two, we are earnestly working on railway sidings. And number three, the Meghalaya expansion for which orders have already been placed. However, the total Capex estimation for the year 2627 is approximately 1500 crores. And it should take its own course. We expect to close the year. There are about 50 to 55 RMC plants, railway sidings and preliminary work on Meghalay Cement.
Navin Sahadeo
Okay. And any thought on your long term next two, three year expansion plans? Because this Meghalay will be a smaller capex.
Ashok Bhandari
Look my dear friend, we are on record saying that we should reach 80 million tons by 2029. But then please understand it’s a dynamic situation. We have slowed down the capex because the even in the last call of one of our competitors they have also slowed their aggression. So we will ride the wave as it is. We intend to reach 50 million tonnes by 29. But let us see.
Navin Sahadeo
Yeah. Understood sir. Great. And on the cash surplus, you know you have increased the dividend for sure. That is a good move. But anything further. Because we are now close to 9,000 crore on surplus cash.
Ashok Bhandari
No, no, no. We are 6,700. Yeah. 8,400 crore. Roughly. You are correct. We will keep on finding the ways to reward the shareholders as well as if the situation improves we can expedite our capital capital expenditure program by front ending it. You will appreciate that in last 15 years or so we have not borrowed. We have generally funded all our capex to our internal accruals. And we intend to do the same.
Navin Sahadeo
Understood. Second on the. If I look at control minus standalone just for clarification would that give the UAE performance or this would also include your subsidiary performance Console minus standalone ebitda.
Ashok Bhandari
Now listen, Console has two components. One is Sri Cement East Limited and one is UCC at Union which is Union Cement in uae. Now Sea Cement East Limited will be the engine for further capacity expansion in India. And UCC as Mr. Khoury has already pointed out is on track to add another 2.3 million ton of capacity by September 26th. And I think it should keep us in good good stead.
Navin Sahadeo
Great. So given that our growth engine will be the instant facility should we not be looking the company at a control level rather than a standalone level?
Ashok Bhandari
Indeed. Indeed. I take your point. And we had been looking at this possibility. Maybe next quarter onwards we will talk on console only.
Navin Sahadeo
I’ll come back in queue. Meanwhile you may share the operating number as usually. Share. Thank you.
Operator
Thank you. Our next question comes from the line of Harsh Mittal from MK Global Financial Services.
Navin Sahadeo
Thank you for the opportunity. Good evening. To the management. My first question pertains to the freight cost which PS2 we have increased by 80 rupees per ton. Kind of a number from on both YOY and sequential basis. Any reason for the same Sir?
Ashok Bhandari
Now what has happened is that the lead distance has increased by about 12 kilometers over last quarter. We are seized of the fact and we are working towards reducing this and maybe bring it back to sub 440 kilometer tonight. And you see basically it is completely dependent on the demand supply scenario of each region.
Navin Sahadeo
So
Ashok Bhandari
We are working on it and we should be able to bring it under our control.
Navin Sahadeo
Second question is that in the last call we mentioned about the depression guidance of around 1600-1700 crores. So are we sticking to the Same number for FY27 or is that from upward revision?
Ashok Bhandari
Yes, we are, we are, we are sticking to that.
Navin Sahadeo
Thank you. These are the questions I joined the click.
Operator
Next question comes from the line of Amit Murarka from Please go ahead.
Navin Sahadeo
Yeah hi, good evening and thanks for the opportunity. So on the strong volume growth delivery in Q4 which is like 11% yoy on cement level is what I see. So going ahead, how do we see it? Like full year is obviously 2 but Q4 is pretty high. So going ahead like should we expect full year run rate to also now be at similar levels?
Ashok Bhandari
Basically the guidance we have been maintaining is 1% over the average industry growth rate. However we expect to reach about 40 million tonnes in this year 2627 we should be around 40 million tons. But of course there are a lot of macroeconomic factors which are beyond our control but hopefully things will do well.
Navin Sahadeo
So just to clarify, 40 is cement including clinker or only cement?
Ashok Bhandari
Look my dear friend, clinker is not our choice. We would not love to. We would not like to sell clinker because we are losing the value add opportunity. Clinker is basically for various small reasons it’s not a meaningful volume at all. So please do not look at clinical volumes at all. Look at cement at first what I am saying is maybe including 200,000 300,000 tons of clinker otherwise it should be cement only.
Navin Sahadeo
Sure, understood. And generally on this West Asia crisis, while we know that there is cost inflation that everyone is facing, what are the mitigation measures? And I believe now coal probably is cheaper than Petco. So are you switching into coal more than Petco or how about what are the mitigation measures? Basically
Ashok Bhandari
My dear friend, it’s a dynamic exercise for us. We keep on working evaluating the techno commercial viability of various kind of fuel mix and as on date, yes, you are right, coal is becoming cheaper than Petcoker. Petco prices also cooled down by more than $10 a ton. So we are not concerned with what fuel we are using. We are concerned with landing cost per kilo calorie on air dry basis at our plant. So we are constantly on that. Indeed. Yes. The fuel cost which is standing at about 160 peso per kilo calorie as of date will move up maybe by 10% or something for next this quarter.
But then yes we are. This is our business to keep on maintaining our sustainability and profitability. You may also note that in spite of whatever results whosoever has declared our EBITDA per ton of cement for the year 2526 is by far the highest in the peer group.
Navin Sahadeo
Right? Congratulations on that. And just lastly if I may, could you provide region wise capacity utilizations for you?
Ashok Bhandari
Look my dear friend, all these details. I am now asking Mr. Jaju and Mr. KKJ to fill you up with these details. I don’t have these details in front of me. They must be having it. Mr. Jayu, can you answer please? Yes. For the
Navin Sahadeo
Full for this quarter. For north the utilization is 70%. For east it is 60%. For south it is 61%. As company as a whole the utilization is 66%. As compared to December the number was 56% for the company as a whole. So from 56 we have increased it to 66%. Got it. Thanks a lot. I’ll just come back and for more questions.
Operator
Thank you. The next question comes from the line of Siddharth Mehrotra from
Navin Sahadeo
The opportunity also sort of going slow on expansion. Do you think there’s an. There’s a chance that demand might be sort of impacted in the oncoming years. What are your thoughts on demand specifically for the next 12 months?
Ashok Bhandari
Let us understand my friend. Before the new series of GDP came into play the demand was 1.3x the GDP growth rate. Now once the GDP series got the constituents of GDP got reconstituted the demand has come to around 1 to 1.1 times degree growth rate. Now the bedrock of growth economic growth is steel and cement. If India needs to grow at 7% steel and cement should grow at least in tandem with that if not more. We expect this year 6.5% to be the GDP growth rate. So we should do about 7.1 7.2% cement demand growth rate.
And as I have said that should be the industry average. We should grow at about 8 to 8.5%. But you can never say so. Let us see how the GDP moves.
Navin Sahadeo
Thanks for Your thoughts on this one? Just another question. We’ve seen a fair amount of cost inflation as you rightly pointed out so I just wanted to check what are the prices looking like this quarter? Have we been able to mostly cost goes on to the customers or do you think we need more tricides to.
Ashok Bhandari
No, no. Listen the fundamental principle of any business is.
Navin Sahadeo
So
Ashok Bhandari
Let us be very clear that whatever we can pass on on a sustainable basis to the market after absorbing our cost cost push we should be. We should be. All right. It may. We will aim to increase the profitability Let us see how it pans out and in any case if the war in Middle east gets over in next two months the fuel prices are about to come down so it is. It is a completely dynamic situation as on date
Navin Sahadeo
Any chance you could provide us some color on the hikes which has been taken say for example in the past month or so
Ashok Bhandari
About 25 rupees a bank
Navin Sahadeo
And this is across regions or
Ashok Bhandari
I don’t have that kind of breakup but south is okay. And this you can of course ask Mr. Kamila Jain or Mr. To send you a mail separately on this.
Navin Sahadeo
Just one last bookkeeping question. Those sales figures that we’ve mentioned that includes volume sales from our wholly and subsidiary as well.
Ashok Bhandari
Subsidiary is only in India. It does, it does.
Navin Sahadeo
Okay.
Neeraj Akhoury
From the Indian operations.
Navin Sahadeo
Okay, so that 10.77 number is including three seventies right? Thank you sir. Thank
Operator
You. Thank you. Next question comes from the line of Pinakin from HSBC bank Please go ahead.
Pinakin Parekh
Thank you very much. Question is that what is the net cash Balance as of March 26th
Ashok Bhandari
We are at about 6400. 6700 crore in investments and 1700 crore cash. Cash and bank. Yes,
Pinakin Parekh
Got it. My second question is sir on capacity expansion so 69 million tons capacity as of March 26 and overall annual full year utilizations would be in early 60s. Now that 80 million ton target by S29 given the utilization levels that are there can we expect this to get pushed out by a couple of years?
Ashok Bhandari
I can’t say. It’s too early to comment. We have slowed down I have given our guidance of 1500 crore only for capex in this year. Let us see how the situation plays.
Pinakin Parekh
Got it. This value over volume and now we are focusing on volumes so is it fair to say that between volumes and price and EBITDA margins while you’re chasing volume EBITDA percent is also something you will keep on focusing on and not let it go down much.
Ashok Bhandari
Look my dear friend Let us understand Q2 and Q3 of last financial year. We suffered to pull up our prices. We did not aggressively sell. And once the prices have established to a level where the delta between the top players and us has reduced significantly, we don’t intend to give up that advantage. We would like to have now our fair and proper market share. That doesn’t mean we’ll go into a price war and push volumes. Profitability is the prime focus. Volume and price, price always the market gives.
Volume is what we can, we are capable to produce. This is the situation now how it will put pressure on ebitda. We have never history given any guidance on EBITDA per turn. We have never given you any guidance on sale price per ton because it is not in control of any commodity manufacturer. Leave aside cement. It is a completely macro driven equation and we would not like to hazard a guess. We can say what our costs are, we can say what our aspirational volumes are and then it’s like whatever will happen to everybody will happen to us as well.
Pinakin Parekh
Got it. This is very clear. Thank you very much sir.
Operator
Thank you. Next question comes from the line of Ritesha from Investec. Please go ahead.
Navin Sahadeo
Hi sir, thanks for the opportunity. A couple of questions. First is if you could sir put some details on the northeast expansion specifically around limestone sourcing. If you have won a mine, what is the auction premium that they have? What we have paid and any indicative timelines on the expansion pension that we have indicated.
Neeraj Akhoury
We have gone by the laws of local government in Meghalaya, the state laws where the state government allocates the mice. What we have got is three blocks each block. We have not completed all the three blocks but the first block where we have done our detailing, we, we believe this. We are talking about roughly about 600 million tons of limestone. Yeah, right.
Navin Sahadeo
So the premium that we have paid and if you have any secured any incentives for this project along with the timelines.
Neeraj Akhoury
Mines are not auctioned, they are allocated. Yeah,
Navin Sahadeo
Okay, answer Incentives.
Neeraj Akhoury
No, we have not yet received any confirmed paper document from the government of Meghalaya on incentives to be given. Yeah, we have approached them but we have not got any confirmation from that. So this project is to our estimate strongly viable even without incentives.
Navin Sahadeo
And sir, how should we look at the capex number? It looks very high. 1800 crores. Is it because of the region or is it something different?
Ashok Bhandari
No my dear friend, crore Capex apparently looks very high. But then as Mr. Khoury just pointed out, we have three blocks. We have prospected one block which gives 600 million ton. Ultimately we intend to reach zone four, four and a half million ton of capacity there. But then once you start looking at setting up that kind of a capacity, we are starting with 0.95 million ton of clinker and 1 million ton of cement. But we have to create the necessary infrastructure, acquire the land, draw the power lines according to our ultimate plan.
So a lot of brownfield expansion expenditure gets front ended and that is why this figure is looking so high.
Navin Sahadeo
Perfect, sir, this helps. Sir, my second question is on the cost levers. Any variables that you would like to highlight, say over next two, three years wherein we can actually improvise on the cost. So probably if you can touch upon any targets on WHRs, second is RE, third is clinker factor and fourth is railway. I think when I met you last time you had indicated the railway volumes. We look to double it over next few years. Some numbers over here also would help. Sir. Thank you so much.
Pinakin Parekh
So
Neeraj Akhoury
No, I mean no company runs out of arguments by which it can better its performance. She of course has many strong arguments where we can further work on our efficiencies and improve the performance. Last time we spoke about railway projects. We have railway, we have afr, We have. All these are part of how do you improve your cost position? And that is what we are working on on railway. We are working on at least three, four different types of different sites on the railway at this moment. It will be not fair for us to disclose a number but be rest assured that all those arguments we are using very strongly to further improve our cost position.
Navin Sahadeo
Sir, Sorry, thanks for that. Any numbers that you would like to qualify for WHRS and RE given we are already doing so well. Do we have further room to implement
Neeraj Akhoury
All our kills for today and for will be linked with whrs? Yeah, even currently all the crews that we are commissioning are having WHRS facilities for RE very deliberately. I’m not giving you a number today. Maybe by next call we should be in a better position to give you that solar energy we are strong. I mean you have seen that we already have 61%. Yeah. And so wherever there is an opportunity where they will continue to invest in renewable energy, solar included, to make sure that we take advantage of this to further better our performance.
Ashok Bhandari
To supplement Mr. Akhouri’s statement, we are also quite aggressively exploring the possibility of a viable battery energy storage system. We have started experimenting on a few things. If that succeeds, then there will be a huge potential of setting up further RE Capacity especially in solar.
Navin Sahadeo
Perfect. And sir, clinker factor what it is right now and do we have any aspiration on this numbers at two years out?
Ashok Bhandari
I’m giving the line to Mr. K.K. Jain. He will give you the numbers.
Kamlesh Kumar Jain
Yeah. For the current quarter the clinker factor is 64. 4.8% against 63.9% December 25th and the 64 in March 25th.
Navin Sahadeo
Answer any target for this two years out?
Ashok Bhandari
Well that is dependent on what kind of market we are addressing. To some markets we are still. They are still on different kind of lengths. Let me Corey explain you further.
Neeraj Akhoury
For each product we will be fully optimizing our clinker factor. Now the future will depend on the product mix and product mix will depend on the kind of segment that we will continue to cater to. So if it is OPC then of course there is a problem. There is a results in a lower clinker factor and if it’s PPC it’s a better clinker factor. But for now I think our clinker factor is in line with the best in class in the industry to my mind except people who use slat.
Ashok Bhandari
I’ll stick my neck out and say that probably we have the best clinker factor.
Operator
Perfect. Sir, this
Navin Sahadeo
Is very helpful. Thank you so much. All the very best sir. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants we request you to kindly limit your question to two questions per participant. If you have a follow up question please rejoin the queue. Our next question comes from the line of Rashi from Citigroup. Please go ahead.
Rashi Garg
Thank you. Just on the cost sir, what has been the cost movement in this quarter? Cost of production versus last quarter.
Ashok Bhandari
Rashi, let me address this up front. Our as I said our per kilocalorie lag d cost last quarter was a 1.60. We expect to creep this creep up to 1.76 or 1.80 and we will. Jadu will share the exact calculation with you. But then please understand that we are trying to keep on increasing our thermal efficiency. Our per kilo calorie consumption in last. No, no not the cost. Quantum of calorie. Calories. Yeah, we use 73 kilo calorie in this quarter. Visa vis 741 in previous quarter. So we are continuously trying to increase this.
And if we sorry decrease this and if we decrease this then the quantum throughput also falls, isn’t it?
Rashi Garg
So for this. So besides the power and fuel cost. You would have also witnessed an increase in packaging costs on a cumulative basis. What kind of cost increase are you talking about?
Ashok Bhandari
Well, you should roughly take about 150 rupees a car. That is about seven and a seven half gas. J.
Kamlesh Kumar Jain
Yeah. There is some increase in the packing cost in the quarter. The impact is impacting is the mark and it is around in. If we see the quarter figure then it is increased by 20 rupee per ton. And now, And now going forward it would be around say 100 rupee pattern there will be increase.
Rashi Garg
So on a total cost basis, just going back to the fourth quarter, you’ve had an increase in the power cost. You’ve had an increase in freight as well as in packaging for the blended cement. Cost of production would have gone up by how much during the fourth quarter. Sequentially
Kamlesh Kumar Jain
Increasing would be should be say 150 to 200 rupee per ton including peing and the raw material cost as well as the this power, fuel and all
Rashi Garg
This is in the fourth quarter?
Kamlesh Kumar Jain
No, no, in the coming quarter. In the fourth quarter. I must say there’s there in the fourth quarter. Almost there. Say the impact of is around say 20 or 30 rupee in the fourth quarter compared to December.
Rashi Garg
Okay. So total cost increases 2030 rupees versus the third quarter. Okay. And this one, what was the percentage of blended cement and trade cement during the quarter?
Navin Sahadeo
It’s 64%. 64% was the trade sale
Rashi Garg
You
Navin Sahadeo
Wanted the trade sale. Right now blended is around 60. Blended is 62%.
Rashi Garg
Blended in 62 and trade is 64.
Navin Sahadeo
Correct.
Rashi Garg
Thank you.
Operator
Are we done with your question?
Rashi Garg
Yes, I’m done. Thank you.
Operator
Thank you. Our next question comes from the line of Parve Kaji from Nawama Group. Please go ahead.
Pinakin Parekh
Thanks for taking my question. I’m sorry if you’ve answered this question earlier but just wanted to get what was our keycal cost in Q4?
Ashok Bhandari
Come back again please.
Pinakin Parekh
Sir, what was our keycal cost in Q4? FY26.
Ashok Bhandari
It’s a 1.6, 1.60 per kilo calorie landed at our flat.
Pinakin Parekh
Sure. And just one more question. What would have been our fuel
Navin Sahadeo
Mix in Q4 for Q4? It was petcoke was 54%. Coal was 32% and alternative fuel was 14%.
Pinakin Parekh
Sure
Navin Sahadeo
Sir.
Pinakin Parekh
Thanks. And
Navin Sahadeo
All the benefits.
Operator
Thank you. Our next question comes from the line of Pratik Kumar from Jeffries. Please go ahead.
Navin Sahadeo
Yeah. My question is on your pricing gap closing with last year you Talked about closing 20 rupees gap. So is this similar across regions and is this a stabilized level? Also said there’s always scope to improve. But how is is different across region?
Ashok Bhandari
Now let us understand pratik. 15 to 20 rupees is the delta decrease across region and we intend to keep it. We intend to compress it further. But then demand plays a major role in pushing the price rises. So let us see how the demand pans out.
Navin Sahadeo
Sure. And this rising gas reduction has happened over past three quarters. Right. Since then your volumes
Ashok Bhandari
Over the over years has been a continuous exercise. Till third quarter we had restricted our volumes to have this rise gain and fourth quarter we have done all right. The pricing is fine, the volumes are good and we intend to remain live.
Navin Sahadeo
Sir, other question is on your RMC business revenue for Q4 and full year and EBITDA for Q4 and full year.
Kamlesh Kumar Jain
RMC revenue is 90 crore rupee and the volume here is 1.99 lakh MQ.
Ashok Bhandari
Please
Neeraj Akhoury
Understand RMC is at a very nascent stage. It just started. Yeah. We are a very new 26 plant company now going to 36. I think we will take a few more quarters and maybe some years before we are able to report RMC independently as a business line. Go ahead.
Navin Sahadeo
This revenue was 90 crores for Q4 and for puller. What was the number?
Kamlesh Kumar Jain
It is 246 crores rupee.
Navin Sahadeo
Sure. Thank you. These are my questions.
Operator
Thank you. Our next question comes from the line of Pulkit Patni from Goldman Sachs. Please go ahead
Navin Sahadeo
Sir. Thank you for taking my question. I just one question. You spoke about packaging cost increase of 20 rupees already done. And another maybe 80 to 100 rupees in Q1 and there’s another 150 to 200 rupees of fuel cost increase. So would that be it? I’m just trying to understand what is the kind of inventory of fuel that we have right now at the plants and does it fully reflect in Q1 or Q2 will see further inflation in that.
Ashok Bhandari
No, wait a minute. As far as Q2 is concerned we cannot comment. Can you tell me when the war will be over? At the moment we are saying that our per kilo calorie cost in Q4 was 160 which is likely to go up by 10 to 12% in Q1. Q2 we are not in a position to comment. There are no cargoes available. Floating cargoes available at the state of hormone is playing a soles point sport. So it is very difficult. It’s extremely dynamic situation. So in PVC now PVC granules are vanishing or having a canopy price rise.
So the indication as on date you can take 100 rupees per ton of banking cost rise. And Mr. Jain had explained to you within the quarter at varied time depending on the weighted average cost of consumption which we use or which most companies use the incremental negative impact of such cost rise will be incrementally. Incrementally reflected in our results. And also remember that the industry as a whole is suffering on these two accounts. And there is a conscious effort by all players to try and have a price rise which should mitigate this cost increase.
Navin Sahadeo
Sir, I fully appreciate that. The reason I’m asking this question is some of your peers have highlighted that they maintain between 60 to 70 days. 75 days worth of fuel inventory which. Okay. Understand
Ashok Bhandari
That they talk of 60 to 75. We have never gone below 90.
Navin Sahadeo
So in which case the fuel cost should hit us in the second quarter. Right? I’m a little confused. Sorry. Help me understand this.
Ashok Bhandari
I said that people are saying they carry 60 to 75 days of inventory. I say our core inventory doesn’t go below 90 days.
Navin Sahadeo
Sir. So in if the war started end of Feb. Early March then it is not before the. The last month of this quarter that increased cost should hit you. Right? Right now we should be operating.
Ashok Bhandari
No, my dear friend, you are slightly mistaken. The charges on weighted average cost not on procurement cost or historical cost. The weighted average cost with every shipment keeps on increasing if the fuel price is rising. So yes, the major impact will come in the third month. But then every month you will have some incremental effect.
Navin Sahadeo
Precisely, sir. So in which case whatever is getting ordered today the second quarter impact of cost will be much higher. That’s what I’m trying to assess.
Ashok Bhandari
That is you are assuming that the same pricing will sustain that or we keep on going that all shipment chaos will be there. I am not in a position to hazard this. Get that guess at the moment.
Navin Sahadeo
Fair point, sir. The point well taken. Thank you.
Kamlesh Kumar Jain
Would like to clarify one thing that there will be say cost impact of one hundred fifty two hundred rupee in the second quarter as compared to the. The December. March. March 26. This is in totality including the pecking may cost and the in June quarter. Not. Not separately for the call and the. For the. Together.
Operator
Okay. Very
Navin Sahadeo
Clear sir. Thank
Operator
You. Thank you. Next question comes from the line of Raga Maheshwari from Equity Securities. Please go ahead.
Navin Sahadeo
Yeah. Hi. Good afternoon. Good evening sir. Firstly congratulations on good set of results. So my question is on the. Firstly the current situation in the north market for the flyers United because due to the continuing health effects is going into the next for the FY27 and 20 market. How will you see the flyers availability in the north Even is it the sufficient flyers available? Because we are. There is no major new power plant coming. So how is flyer situation especially. Yes sir.
Ashok Bhandari
Is the only cementitious material which we can use. There are various other cementitious material which which can go into PPC. And we are keeping those counting for all such alternatives. So thermal capacity fly fly constraint there are so different.
Navin Sahadeo
Got it sir. What kind of we use for other materials other than flyers for the people. Okay. Thank you.
Operator
Thank you. Our next question comes from the line of Girija Ray from Nirmal Bank. Please go ahead. You may please proceed ahead with the question. Thank you. As there is no response from Girija Ray. We’ll move forward to the next participant. Our next question comes from the line of Rajesh Ravi from SDFC Securities. Please go ahead.
Navin Sahadeo
Yeah. Just a follow up question sir on the operating numbers. While most of you. Most of them are already answered. What was the lead distance that you mentioned in Q4?
Ashok Bhandari
I think it was 459 kilometers.
Navin Sahadeo
455 kilometers. Okay. And. Yeah.
Ashok Bhandari
457. 457. Sorry.
Navin Sahadeo
Okay. And this you’re looking to go back to 440 and subsequent quarters.
Ashok Bhandari
Yes.
Navin Sahadeo
And the price hike that. Yeah. And sir, lastly on the cement price hike across market. Any operating market this 150 to 200 cost inflation that you have seen for Q1. Are they fully covered in the price increases which you have taken in the month of April?
Ashok Bhandari
Anticipated cost increase up to June. Situation be dynamic or demand be dynamic? Demand. Yes. We are generally covered.
Navin Sahadeo
Given the steel prices have also slaughtered significantly. And there are across the board inflationary impact on construction materials. And there have been disruption even on labor availability. Have you seen demand disappointing in the month of April and May so far. Great. That’s all from my end. Thank you.
Ashok Bhandari
Naveen, are we through or you have some questions?
Operator
Thank you. Our next question comes from the line of Naveen Saadu from ICC Securities. Please go ahead.
Navin Sahadeo
Yeah, just last few people are there for the questions. Just two questions from my side. So in the initial comment or maybe to the answer of one of the questions you said. I mean Akuluji said that the incentives for Meghalaya though we are like you know working with the state. But nothing is promised as yet. Is this a New policy or any change in policy for the state or it’s just help me understand this because other companies.
Ashok Bhandari
Incentive. To Amisha incentive, adverse conditions, internal procedure, industrial policy investment committee.
Navin Sahadeo
Understood. So my second question then was about the north region. I think sometime back Banguthi in a TV interview had said that they might lose some market share in the north regions because of the several I think upcoming capacities and but this quarter our volume growth has been definitely like, you know, much better than the previous quarters. And also the strategy is very consciously towards focusing on volumes now that we have.
Ashok Bhandari
No, I said that we sacrificed volumes to reach a price point and once we reached that price point and it became acceptable to all we sold as much as we could sell. So. Problem it is not that we are reinventing the equation value over volume to volume over value. Profitability is our main concern. We remain focused on profitability. Time will only say by.
Navin Sahadeo
Thank you.
Ashok Bhandari
Are we through? It is already one hour here. Yeah, yeah.
Operator
Thank you. That was the last question for today. I now end the conference over to the management for the closing remarks. Thank you and over to you.
Neeraj Akhoury
Thank you everybody. Thanks for the call and thank you for participating. Be Rest assured that despite all the numbers that we have shared and thank you for wishing us well on this 11% volume growth many things will continue to unfold in she cemented. We will continue to sharpen our approach and focus on cost. We’ll also continue to work on our premium products. As you have seen, we have now crossed 22% up by about 40% from 15% to 22%.
Kamlesh Kumar Jain
There’s a increase in the sale in last two years from 9% to 22% in the 9%
Neeraj Akhoury
To 22%. So we have. We are doing everything possible using all the levers be it on the cost or be it on the revenue side to better our performance in the coming quarters. Inshallah, whatever is the macroeconomic conditions we will be impacted. But within those conditions SRI will do its best to deliver some superior results. Thank you everybody and have a very good evening. Bye bye.
Operator
Thank you so much. Ladies and gentlemen, on behalf of ICIC Securities Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.