Tax Demand of Bangur Cement Maker Cut to ₹222 Crore by the Income Tax Department After Rectification

As per a stock exchange filing, the tax liability of Bangur Cement producer, Shree Cement, has been reduced to ₹221.72 crore by the Income Tax department. The tax demand was revised by the Assistant Commissioner of Income Tax, Central Circle, Ajmer under Section 154 of the Income Tax Act, 1961.

About the Maker of Bangur Cement: Shree Cement

Shree Cement is India’s third-largest cement manufacturer. It was founded in 1979 and is headquartered in Kolkata. It operates across India with a significant presence in northern and eastern regions. The company produces cement under brands like Shree Jung Rodhak, Bangur Cement, and Rockstrong.

How Much Tax Demand Did Shree Cement Receive First?

On May 28, 2025, the company had recieved a tax demand of ₹588.65 crore for FY 2021–22 based on an assessment order under Section 143(3).

However, Shree Cement filed an appeal against the disallowances made in the assessment. Upon revision, the company’s tax liability was reduced to ₹221.72 crore. The company has already paid the amount using adjustments from pending tax refunds.

Shree Cement Q1 FY26 Earnings Results

Shree Cement reported a strong jump in net profit for the first quarter of FY26, with profits nearly doubling to ₹618.5 crore, compared to the same quarter last year. The result was also better than CNBC-TV18’s estimate of ₹523 crore.

The profit boost came mainly due to a 50% rise in other income, which reached ₹201 crore during the quarter.

However, revenue grew only 2.3% year-on-year to ₹4,948 crore, which was lower than street expectations of ₹5,025 crore.

EBITDA and Margins of Bangur Cement Maker

The company’s EBITDA rose 34% year-on-year to ₹1,229 crore. However, it missed analyst expectations, which were pegged at ₹1,321 crore.

EBITDA margin improved significantly to 25%, up from 19% a year ago. But this too fell short of the expected margin of 26.3%.

Shree Cement Share Price Performance

On the day of the announcement, Shree Cement share price closed at ₹30,700 on the BSE, down ₹217.75 or 0.70%. At 10:53 AM, the stock was trading at ₹30,520.

Read more: Clean Science Share Price: How 'Punching Error' During Block Trade Put It In Focus.

Conclusion

Shree Cement’s reduced tax demand offers financial relief and is a positive development for the company. While revenue growth was modest and slightly missed expectations, the company’s strong profit growth and margin improvement reflect solid operational performance. 

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