Cement Industry

Leading cement makers reported strong double-digit year-on-year growth in sales volumes during the December 2025 quarter, even as their realisations came under pressure. The companies remain optimistic of further improvement in demand and prices in the coming months, aided by benign inflation, supportive tax rationalisation measures and healthy infrastructure-led growth. Industry leaders, including UltraTech, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement and JSW Cement, saw higher capacity utilisation and expansion in volumes. However, overall profitability was impacted by rising input costs, provisions under new labour codes and elevated prices of pet coke and coal. Despite these challenges, toplines were supported by premiumisation, improved product mix and higher non-trade sales. Apart from grey cement, companies also reported robust growth in their Ready Mix Concrete (RMC) business, which registered high double-digit expansion. Leading cement maker UltraTech .

The Budget allocation is up about 9 per cent in nominal terms and, given grant-in-aid, it would push effective capex for FY27 to Rs 17.1 trillion

HDFC Securities has lowered its Ebitda estimates for Birla Corp for FY26-28E by 6 per cent, 9 per cent and 4 per cent, respectively, to account for near-term pricing pressure in Q3FY26

Industry demand likely grew in low double digits year-on-year (Y-o-Y) in December 2025, reflecting broad-based improvements across regions

The study, which examines corporate readiness in Brazil, China, India and South Africa for CBAM, finds no evidence so far of broad competitiveness losses for exporters from these economies

Weak Q3 pricing persists despite Y-o-Y profit gains, as aggressive capacity expansion overshadows near-term demand

Leading cement companies, buoyed by a high single-digit volume growth in the July-September quarter along with an increased sales realisation, expect a better performance in the second half of the current fiscal, betting big on the housing sector and the government's spending on key infra projects. Top five cement makers such as UltraTech, Ambuja Cement, Shree Cement, Dalmia Bharat and Nuvoco Vistas have reported up to 18 per cent growth in their revenue from operations in the second quarter ended September, backed by healthy sales realisations, benign costs and premiumisation. As prices of coal have declined and that of diesel stable on a year-to-year basis, even though the rate of petcoke increased, cement companies in their latest earnings calls said they expect a better performance in the second half (H2) of FY26, to be led by the individual home builders (IHB) segment in rural and urban areas, helped by factors such as a good monsoon and recent tax incentives and GST reforms by

Low base, premium mix and new capacity supported gains

Streamlines freight rates for cement

Capex during FY26-FY28 to be 50% higher than the previous three years; industry to add up to 170 MT of capacity amid strong demand, says Crisil Ratings

UltraTech Cement's profit and margin rose sharply in Q2FY26 as demand, cost controls, and GST 2.0 reforms supported growth; firm eyes 235 mtpa capacity by FY29

Revenue from operations rose 20.3 per cent YoY to ₹19,606.93 crore. Grey cement volumes grew 7.1 per cent YoY, while realisations improved 4.5 per cent

ACC and Ambuja Cements were acquired by Adani group in September 2022 from LafargeHolcim Group.

Y-o-Y Ebitda per tonne rises sharply on better pricing and volume growth, while seasonal monsoon and GST cut temper quarterly gains across major cement firms

Elara Capital cautions that the near-term pricing environment remains weak, with operating leverage and higher costs likely to weigh on profitability in Q2FY26 and potentially spill over into Q3FY26.

Icra expects cement companies' FY26 operating profit to reach Rs 900-950 per tonne, with healthy demand, better realisations and GST cuts driving growth despite global crude risks

GST rate cut on cement from 28% to 18% is expected to benefit cement companies in the medium term, though margins may face pressure in the near term as benefits are passed on to consumers

Experts predict that the GST cut on cement from 28% to 18% will boost infrastructure project viability, encourage PPP participation, and enhance the sector's competitiveness

GST Council has cut cement tax to 18% and reduced rates on key building materials, easing costs for developers and homebuyers. Experts say the move could revive affordable housing, fuel jobs

JSW Cement reported a Q1 FY26 loss of Rs 1,356.17 crore due to a one-time CCPS conversion, even as revenue rose 7.77 per cent and operating Ebitda improved 39 per cent YoY