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 .
With industry peers increasingly adopting similar strategies, PL Capital highlighted that the company may need to recalibrate its approach, leveraging core strengths to accelerate volume growth
Low base, premium mix and new capacity supported gains
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While Nuvama Institutional Equities has reiterated its 'Hold' rating on Shree Cement, Choice Institutional Equities has maintained a 'Sell' call, citing expensive valuations and limited upside
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Shree Cement Ltd, the country's third-largest cement group by capacity, on Tuesday, reported over fourfold jump in consolidated net profit to Rs 309.82 crore for the September quarter of FY26, helped by sales volume growth and premiumisation. The company had posted a net profit of Rs 76.64 crore in the July-September period a year ago, according to a regulatory filing from the Bangur family-promoted Shree Cement Ltd (SCL). Its revenue from operations was up 17.43 per cent to Rs 4,761.07 crore in the September quarter of FY26. It was at Rs 4,054.17 crore in the corresponding quarter of the preceding fiscal year. The revenue growth was "driven by volumes, premiumisation push and value over volume strategy adopted by the company", according to an earnings statement by the company. Total expenses of SCL were at Rs 4,506.37 crore, up 7 per cent in the September quarter. Though the company has not specified the total sales volume, however, said it was "up by 6.8 per cent on a YoY ...
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.
GST Council has approved a reduction in rates on cement from 28 per cent to 18 per cent, effective September 22, 2025
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Cement demand is driven by government projects in infrastructure and housing, a rural rebound, and industrial capex
Reliance Industries, IndiGo, DLF, Ambuja Cements and Shree Cement can potentially rally up to 24 per cent from present levels, suggest technical charts.
Cement shares rally on Monday: Analysts view the potential GST rate cut as a sentimental booster for the sector given it may help perk up industry margins.