Cement Industry

Combined revenue share of UltraTech, Ambuja at 51.2% in FY26

An iFOREST report finds improved energy and carbon efficiency in India's cement sector, but flags rising groundwater use in water-stressed areas and worsening worker safety.

ACC Ltd, an Adani Group cement firm, on Tuesday reported 91.7 per cent fall in consolidated net profit to Rs 93 crore for September quarter FY27, on account of decline in sales volume due to a Master Supply Agreement with the parent entity. The company had posted a profit of Rs 1,119 crore in the July-September period, according to a regulatory filing from ACC, a subsidiary of Ambuja Cements. The year-ago profit "includes income tax provision reversal of Rs 659 crore relating to earlier period and interest on income tax refund of Rs 205 crore." Revenue from operations was down 5.24 per cent year-on-year to Rs 5,656 crore in September quarter FY27. Total expenses were up 2.46 per cent at Rs 5,602 crore. In the quarter, revenue from the cement business was down 6.9 per cent at Rs 5,206 crore. According to the company, the decline in sales volume was due to "higher MSA (Master Supply Agreement) volume with parent Ambuja Cements" in Q2FY26. Cement makers enter into MSA with parent ...

Demand is expected to pick up from mid-November, after the festival season. Urban housing, infrastructure and private-sector capex are likely to remain key growth drivers

Cement capacity additions are expected to outpace demand growth in FY27 and FY28, potentially lowering utilisation and putting pressure on prices in some regions

Leading cement manufacturers have reported a divergent set of earnings in the June quarter of FY27, as capacity additions, market share gains and improved demand across key regions helped healthy volume growth, while elevated fuel and raw material costs weighed on profitability for several players. Listed cement makers have reported sales volume growth of up to 27 per cent, except second-largest maker Ambuja Cement, which reported a 14 per cent decline. Most of the companies reported double-digit sales growth, while profits came under pressure due to rising energy costs, subdued realisations and the lingering impact of geopolitical disruptions in West Asia. Moreover, cement makers reported a rise in premium portfolio, and improved their trade mix to enhance realisations, protect margins and offset rising fuel, freight and raw material costs. Besides, they are also optimistic about FY27, with 7-8 per cent volume growth. Leading cement maker UltraTech Cement and fifth-largest player

The cement maker expects revenue to exceed Rs 13,000 crore in FY27, backed by 7-8 per cent volume growth, stable pricing, demand recovery and ongoing capacity expansion

Strong infrastructure demand and a favourable base are expected to drive Q1 FY27 cement volumes, but rising fuel and input costs may weigh on margins despite better realisations

Cement makers face surplus capacity and elevated costs, with stronger demand and lower fuel prices expected to drive earnings and valuations in the second half of FY27

JK Cement is prioritizing enhanced capacity utilization and aggressive premiumization to protect margins against cost inflation this fiscal and is executing an expansion-led strategy to reach 50 MnTPA capacity by 2030, its Joint Managing Director and CEO Madhavkrishna Singhania said. The immediate priorities of JK Organisation group firm for FY27 include stabilising newly-commissioned capacities, improving utilisation levels, expanding market reach in key regions and strengthening its portfolio of value-added building materials, said Singhania in the latest annual report of the company. "As we look ahead to FY 2026-27 and beyond, our priorities are clear: stabilise the capacity added during this year, drive utilisation improvements, deepen market reach in chosen regions, continue strengthening our value-added products portfolio, sustain the journey on premiumisation, scale digital enablement and data-driven decision-making, embed safety even more deeply into our culture, and ...

Rising fuel and packaging costs linked to the conflict may weigh on the sector's margins

Leading cement makers expect a healthy growth in the range of 7-8 per cent in FY27, driven by government infrastructure spending, housing demand and urbanisation, notwithstanding short-term headwinds due to rising fuel costs amid the West Asia crisis. Top executives of companies like UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Cement and Nuvoco Vistas, in their latest earnings calls, expressed optimism about medium-term demand, projecting industry growth in the range of 7-8 per cent, while betting on premiumisation and improved sales realisations to support earnings amid cost pressures. Moreover, cement companies are also stepping up capital expenditure plans for FY27, betting on an infrastructure push and housing demand despite near-term challenges. UltraTech said the sector is facing near-term challenges from higher fuel costs, freight expenses and import-dependent supply chains amid geopolitical uncertainty in West Asia. "It's a real headwind on fuel costs, packing ba

India's demand for cement accelerated 6 per cent-7 per cent year-on-year in January and February due to strong growth, but moderated in March

The Ministry of Mines will auction 12 limestone blocks in Jammu & Kashmir to support industrial growth, infrastructure development and economic activity

Ambuja Cements reported a consolidated net profit of ₹1,830 crore in the Q4FY26, up 78.5 per cent from ₹1,025 crore in the year-ago period

Aditya Birla Group firm crosses 200 mtpa capacity milestone, outlines Rs 16,000 crore investment plan to expand capacity to 240 mtpa by FY28

Cement companies are likely to report healthy volume growth in Q4 FY26 on strong demand and capex push, but rising fuel and packaging costs may weigh on profitability and margins

Rising fuel costs amid geopolitical tensions may pressure cement sector margins, with the impact expected to intensify once existing inventories are exhausted

Analysts at Centrum Research estimated aggregate industry volumes rose about 13 per cent Y-o-Y and 12 per cent sequentially, aided by a rebound in non-trade demand

Muted volumes and a miss on realisations weighed on Shree Cement's operating performance in Q3 FY26, even as lower depreciation helped lift net profit year-on-year