Cement majors post double-digit volume growth in Q3, eye price recovery

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 infra-led growth

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 reported a 15 per cent rise in its consolidated sales volumes to 33.85 metric tonnes (MT) in the December quarter.

However, its sales realisation declined 0.4 per cent on a year-on-year basis. Its capacity utilisation was 77 per cent compared to 72 per cent during the same period last year.

In the earnings call, its CFO Atul Daga said cement prices remained subdued post-GST change. However, an improvement is being witnessed in prices in all segments across the country.

"There have been cost increases in the cost of pet coke and coal, the new labour code will have its own impact, and rupee depreciation. All these will have an impact on the cement industry. And obviously, there is reason to pass on these cost escalations into prices," he said.

The all-India average cement price increased by 1 per cent year-on-year in December 2025 to Rs 330 per 50 kg bag.

"In 9M FY2026, the prices were up by 4 per cent at Rs 345/bag (50Kg). In FY2025, cement prices declined by 7 per cent year-on-year to Rs 340/bag," according to an ICRA report.

Coal prices remain under pressure, it said, adding petcoke prices increased by 10 per cent year-on-year to Rs 12,280/MT in January 2026 and by 7 per cent during 10 months of FY2026, though diesel prices remained steady.

Adani Group firm Ambuja Cements, which recorded the highest-ever quarterly sales volume at almost 18.9 million tonnes, up 17 per cent, and improved market share to 16.6 per cent. It reported an improvement of Rs 5 per bag in sales realisations with its focus on premium and blended cement.

Its CEO Vinod Bahety said "volume will be growing double digit" in the coming quarter. The company is balancing growth between 'volume and value'.

"And therefore, you will see more accelerated improvement on my realisation, on my blended cement, on my premium cement. And therefore, even at the risk of losing some low EBITDA volume, which we will do, but we will play a balance game of volume and value," he said in earnings calls while replying to a query.

Bahety remained 'bullish' on demand for the cement industry.

"Q4 should also see around 8 per cent growth. And therefore, the leading players will find double-digit growth again in the quarter of March," he said.

Shree Cement Ltd, the country's third-largest cement group by capacity, though has not specified the total sales volume, but said it was up by 2 per cent on a year-on-year basis. The company is "concentrating on value over volumes" as there is a "large divergence between our sales price and sales price of competitors like UltraTech," said its management in the earnings call.

The company, which sold 2.7 million and 3.3 million tonnes of cement in November and December, said January is more or less in line with December 2025.

"We expect the same momentum to continue with a much higher realisation, and it should automatically improve our capacity utilisation," said Shree Cement management.

Dalmia Bharat's revenues improved by 10 per cent year-on-year to Rs 3,506 crore, while EBITDA improved by 18 per cent to Rs 602 crore.

Replying to a query in the earnings call, its MD & CEO Puneet Dalmia said: "Q3 saw softening of prices beyond GST cuts, especially in our key operating regions of East and South".

"Though Q4 has started with some improvement, we will see how prices pan out in the coming months," Dalmia said, adding he "remains optimistic that prices should be supportive going forward in the mid to long term".

JK Lakshmi Cement management said non-trade prices went down drastically post-GST reduction.

"I see prices are going to do better. One, because of improved demand. Second, the cost is going up. So, prices definitely will go up going forward. Non-trade prices have gone up in the majority of the market. Even trade is also likely to follow," the management said in the earnings statement.

Similarly, JSW Cement's volume sales were up 3.56 per cent to 3.56 MT in Q3/FY26. However, its Cement realisation in Q3 declined by 3.9 per cent on a quarter-on-quarter basis. Its EBITDA per tonne declined on a QoQ basis, primarily due to softening of cement prices during Q3 FY26 and an increase in cost of raw materials, partially offset by operating leverage.

However, JSW Cement, part of the USD 23 billion JSW group, expects infrastructure-led growth driven by a strong Central and State capex thrust to boost demand for the sector.