Cement shares rally up to 5%, UltraTech, JK hit record highs; here's why

Cement shares price today

 

Shares of cement companies rallied up to 5 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market after Dalmia Bharat’s operational performance improved substantially in the March 2025 quarter (Q4FY25), sequentially led by pick-up in volumes and operational efficiencies.

 

Shares of Dalmia Bharat gained 5 per cent to Rs 1,981.40 on the BSE in intra-day trade. The stock was trading close to its 52-week high of Rs 1,987.60 touched on April 24, 2024.

 

Meanwhile, sector giant, UltraTech Cement hit an all-time high of Rs 12,187.90, up 2 per cent in intra-day trades. The stock surpassed its previous high of Rs 12,143.90 recorded on December 16, 2024.

 

Share price of JK Cement also hit a new high of Rs 5,265.75, surging 4 per cent in intra-day trade. The stock has rallied 25 per cent from its previous month low of Rs 4,225 touched on March 17, 2025.

 

ACC, Birla Corporation, Grasim Industries, Shree Cement and Ramco Cement were also among notable cement stocks trading higher in the range of 1 per cent to 3 per cent. In comparison, the BSE Sensex was down 0.36 per cent at 79,830 at 02:02 PM.

 

Dalmia Bharat’s Q4 financial performance

 

Consolidated revenue was down 5 per cent year-on-year (YoY) to Rs 4,091 crore on account of lower volume (8.6 mtpa, -2.3 per cent YoY) and lower realisation (-2.8 per cent YoY). Sales volume was lower YoY as the company had 0.6 mtpa additional volumes in Q4FY24 through tolling arrangement with Jaypee. 

 

Sequentially, revenue was up 28.6 per cent, led by 28.4 per cent quarter-on-quarter (QoQ) growth in volume with realisation remaining flattish QoQ. Total cost/ton was down by 7.6 per cent YoY, led by lower raw material cost and other operational efficiencies.

 

Sequentially, total cost/ton declined, mainly due to positive operating leverage. Earnings before interest, taxes, depreciation, and amortization (EBITDA)/ton increased by 24.1 per cent YoY (+20.9 per cent QoQ) to Rs 922/ton. Subsequently, EBITDA was up 21.3 per cent YoY (+55.2 per cent QoQ) to Rs 793 crore on low. Further, profit after tax increased by 37 per cent YoY (+565 per cent QoQ) to Rs 439 crore on tax reversal of Rs 79 crore.

 

Backed by a robust balance sheet, strong leadership team and optimistic profitability outlook, the management said the company is well positioned to successfully undertake the next phase of its expansion.  Also Read: NSE revises criteria for SME stocks to shift to mainboard; check new rules

 

Cement sector outlook

 

The Indian economy continues to demonstrate resilience amidst the ongoing global macroeconomic uncertainty. With strong GDP growth projections supported by higher capex allocation and increased disposable income for individuals, the management of Dalmia Bharat remains confident about healthy cement demand in the country.

 

With the monsoon still two months away, cement companies stand to benefit from this seasonally strong period and are likely to hike prices by Rs 10-15/bag in April, as pet coke prices have inched up ~13 per cent QoQ and would start hurting from Q1FY26. Analysts at PL Capital expect their cement coverage universe to deliver strong sequential performance supported by strong volume growth and improvement in realizations. Although higher pet coke prices would warrant further price hikes, soft coal prices would aid. 

 

Key monitorables to watch out are continuation of demand growth, sustainability of price hikes, and trends of pet coke and other costs, the brokerage firm said.

 

Brokerage view on Dalmia Bharat – ICICI Securities

 

Operational performance improved substantially QoQ led by pick-up in volumes and operational efficiencies. Capacity utilization stood at 74 per cent during this quarter (vs 58 per cent in Q3FY25). Going forward, ICICI Securities believe that operational performance would improve considerably in FY26E-27E led by further pick-up in demand, increase in prices and continuous focus on improving cost structure through operational measures.

 

About Dalmia Bharat, UltraTech 

 

Founded in 1939, Dalmia Bharat is one of India’s pioneering cement companies headquartered in New Delhi. With a growing capacity, currently pegged at 49.5 MnT, Dalmia Bharat Limited (including its subsidiaries) is the fourth-largest cement manufacturing company in India by installed capacity.

 

UltraTech, an Aditya Birla group entity, was incorporated in August 2000. UltraTech is the market leader in Indian cement industry with 177.7 MPTA grey cement capacity as on March 1, 2025 with pan-India presence. UltraTech has 35 Integrated Units (34 in India and one overseas), 34 Grinding Units (30 in India and 4 overseas), 9 Bulk Packaging Terminals – Sea + Rail (seven in India and one overseas), 2 white cement units and 3 Putty units and 5 Jetties across India, the UAE, Bahrain, and Sri Lanka.