Leading cement makers recorded 7-8 per cent volume growth in Q1FY27, but higher fuel, packaging and other input costs offset price gains and weighed on profitability
According to Motilal Oswal, the cement sector presents an improving medium-term outlook and opportunities for investors
Looking beyond the Q1, analysts expect domestic cement demand to grow at a healthy 6-8 per cent CAGR over FY27-FY29, driven by sustained public infra investments and housing demand.
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
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 ...
Q4FY26 company results: Firms including Rainbow Children's Medicare, Anupam Rasayan India, Dollar Industries, Polyplex, and Precision Wires are also to release their January-March earnings today
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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
Despite the two-day rally, in the past one month, cement companies stocks have underperformed the market by falling up to 17%, as against 8% fall in the BSE Sensex.
Among stock preferences, UltraTech Cement remains its top pick in the large-cap segment for Motilal Oswal, while it maintains a positive view on JK Cement and Dalmia Bharat in the mid-cap space
On-going escalation of the Iran-Israel-US conflict tends to spike global crude oil prices, which in turn drive up petcoke and diesel prices, affecting cement manufacturers margins, say analysts.
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