India’s third-largest cement manufacturer, Shree Cement Limited, on Wednesday (August 2), said the Income Tax Department has reduced its earlier tax demand of ₹588.65 crore to ₹221.72 crore following a rectification order under Section 154 of the Income Tax Act, 1961.
The revised demand of ₹221.72 crore has been fully paid by way of adjustment against pending refunds, the company said in its filing.
The company had earlier disclosed on May 28, 2025, that an assessment order under Section 143(3) for FY 2021–22 had raised a demand of ₹588.65 crore. Shree Cement has now informed that the rectification order was received on August 19, 2025, from the Assistant Commissioner of Income Tax, Central Circle, Ajmer.
Shree Cement added that it has filed an appeal before the appellate authority against the disallowances made in the assessment order. Based on orders of authorities and appellate forums for preceding years, the company said it expects the demand to come down further.
First Quarter Results
Net profit for the period nearly doubled on a year-on-year basis to ₹618.5 crore. The jump in profitability was aided by a 50% jump in the company’s other income to ₹201 crore. The figure was higher than the CNBC-TV18 profit estimate of ₹523 crore.
Revenue for the quarter increased by 2.3% from the same quarter last year to ₹4,948 crore, which turned out to be below what the street had pegged the figure to be at ₹5,025 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased 34% on a year-on-year basis to ₹1,229 crore, but missed expectations of ₹1,321 crore.
EBITDA margin for the period expanded 6 percentage points to 25% from 19%, but the margin figure was also below the CNBC-TV18 poll estimate of 26.3%.
