Shree Cement Tax Demand Cut to ₹221.7 Crore from ₹588.6 Crore

21 Aug 2025 , 11:29 AM

Shree Cement Ltd, India’s third-largest cement maker, said on Wednesday (August 20) that the Income Tax Department has reduced its earlier tax demand from ₹588.65 crore to ₹221.72 crore. The revised demand came through a rectification order under Section 154 of the Income Tax Act, 1961. Shree Cement confirmed that the ₹221.72 crore has been fully settled by way of adjustment against pending refunds.

Earlier, on May 28, 2025, the company had disclosed that an assessment order under Section 143(3) for FY 2021–22 had raised a demand of ₹588.65 crore. The rectification order was received on August 19, 2025, from the Assistant Commissioner of Income Tax, Central Circle, Ajmer.

The company said it has filed an appeal before the appellate authority against the disallowances made in the assessment order. Based on precedents in earlier years, Shree Cement expects the demand could reduce further once appeals are decided.

For Q1 FY26, Shree Cement reported a net profit of ₹618.5 crore, nearly double the figure from the year-ago period. The surge in profitability was supported by a 50% increase in other income to ₹201 crore. Revenue for the quarter stood at ₹4,948 crore, up 2.3% year-on-year. EBITDA rose 34% YoY to ₹1,229 crore. EBITDA margin expanded to 25% from 19% a year ago.

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