Cement firms volumes grow, but realisations decline in Q4 amid weak pricing

The top Indian cement companies reported healthy sales volume growth in the March quarter of FY25 but a decline in their realisations amid weak pricing.

 

In Q4 FY25, pan-India cement prices stood at ₹362 per bag, down by 3 per cent year-on-year. Quarter-on-quarter, prices grew by 2 per cent. South India was hit the most with a 10 per cent decline in prices, according to Crisil Intelligence.

 

Excluding Shree Cement (whose blended realisation remained flat year-on-year), UltraTech Cement, Ambuja Cements, JK Cement, Dalmia Bharat, Ramco Cements, and Birla Corp posted lower realisations on a year-on-year basis.

 

According to analysts at Mirae Asset Sharekhan, consolidation in India’s cement sector and weak demand have put pressure on the pricing environment. However, demand increased by 4 per cent during Q4 FY25. 

 

Apart from Dalmia Bharat and Ramco Cements, all the other top firms posted a rise of anywhere between 3.3 and 16.9 per cent in their sales volume due to improved cement demand. Overall, industry volume grew by 5 per cent year-on-year.

 

The growth came despite weakness in the March quarter due to elections, analysts at Yes Securities noted.

 

UltraTech’s growth was driven by its acquisitions of India Cements and Kesoram, while Adani family-owned Ambuja’s growth came on the back of Orient Cement and Penna Cement.

 

However, blended earnings before interest, taxes, depreciation, and amortisation (Ebitda) of UltraTech and Ambuja declined year-on-year despite lower input costs and better operating leverage, while that of Shree, Dalmia Bharat, and JK Cement improved. Sequentially, all top cement makers witnessed an improvement in blended Ebitda.

 

All cement firms managed to reduce total costs by 1–7.2 per cent year-on-year in Q4 FY25 due to lower input costs—particularly fuel—and improved operating leverage.

 

Overall, in FY25, prices declined by 7 per cent year-on-year to ₹340 per bag. Meanwhile, top companies’ volumes grew anywhere between less than 1 per cent and over 10 per cent. Blended Ebitda and realisations also declined. However, companies succeeded in reducing total costs during FY25.

 

For FY26, companies are optimistic about improved cement demand on the back of the government’s focus on infrastructure and housing. 

 

According to analysts at Mirae Asset Sharekhan, with the return of government capital expenditure, both demand and pricing are expected to improve. Sector margins are expected to rise from here, enhancing overall profitability.

 

UltraTech’s management stated that prices showed sequential improvement in April 2025 across most regions, notably in the South, although overall realisation growth remained modest. It stated that April pricing trends were better compared to both March-end levels and the Q4 FY25 average.

 

According to analysts at JM Financial, industry profitability is likely to improve further in Q1 FY26. Pan-India average cement prices have increased by 4 per cent quarter-on-quarter in the quarter so far (₹15 per bag), mainly led by sharp price hikes in the South and the East, while other regions remained broadly flat. “With the early onset of the monsoon, we see an increasing possibility of some price reversal over the next few days,” the analysts noted. 

Blended realisation (INR/tn)		Q4FY24	Q4FY25	% YoY
UltraTech		5,721	5,555	-2.9
Ambuja (Consolidated)		5,371	5,299	-1.3
Shree (blended)		5,323	5,325	0
Dalmia Bharat		4,893	4,779	-2.3
JK Cement		5,566	5,444	-2.2
Source: JM Financial