On August 21, 2025, Shree Cement announced that the Income Tax Department had lowered its tax demand from ₹588.65 crore to ₹221.72 crore. This reduction came after a rectification order was issued under Section 154 of the Income Tax Act, 1961. The company has already paid the revised amount by adjusting it against pending refunds, but it has also appealed the decision, hoping for a further reduction. ⚖️
Income Tax Reduction
Initially, an assessment order under Section 143(3)—which allows for a detailed scrutiny of a company’s finances—had raised a tax demand of ₹588.65 crore for the fiscal year 2021-22. However, a later rectification order under Section 154—which is used to correct obvious errors—reduced the demand to ₹221.72 crore. While the company has paid this amount, it has also filed an appeal, believing the demand will be further decreased based on previous legal precedents.
First Quarter Financial Highlights
Shree Cement’s first-quarter results showed a mixed financial performance.
- Profit: The company’s net profit nearly doubled year-on-year to ₹618.5 crore, exceeding expectations. This was largely due to a 50% increase in other income, which grew to ₹201 crore.
- Revenue: Revenue saw a modest 2.3% increase to ₹4,948 crore but fell short of the market’s ₹5,025 crore forecast.
- EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 34% to ₹1,229 crore. However, this figure, along with the EBITDA margin of 25%, both missed analyst expectations.