India’s top cement producers delivered a solid July-September quarter (Q2) in 2025-26 (FY26), lifted by firmer prices, higher sales volumes, and a favourable base.
Seasonal weakness and maintenance outages did dent sequential performance, but the overall picture remained positive — and the road ahead looks steady.
“Realisations improved by Rs 250-300 per tonne year-on-year (Y-o-Y), driven mainly by better cement prices, which helped companies lift their earnings before interest, tax, depreciation, and amortisation (Ebitda) per tonne compared to last year,” said Vijay Agrawal, managing director and sector lead-infrastructure at Equirus Capital.
Average all-India cement prices hovered at Rs 355-365 per bag in Q2FY26, up from Rs 330-335 in Q2 of 2024-25 (FY25).
Last year’s demand was hit by lower government capital expenditure (capex), the general election, and weather disruptions, observed Akshay Shetty, research analyst at Mirae Asset Sharekhan.
Centrum Broking said management commentaries after results pointed to 4-5 per cent Y-o-Y demand growth in Q2 FY26 despite weather-related interruptions.
Stronger rural activity and ongoing construction kept consumption buoyant.
Industry-wide Ebitda per tonne rose to Rs 932, a 41 per cent jump Y-o-Y.
JM Financial reported that industry volumes (like-for-like) grew 7 per cent Y-o-Y in Q2FY26.
Adjusted for acquisitions, consolidated volumes at UltraTech Cement and Ambuja Cements also rose 7 per cent.
JK Cement saw a 15.1 per cent increase, driven by capacity ramp-up and better utilisation.
“The aggregate reported Ebitda of our coverage universe (about 75 per cent of industry capacity) rose 53 per cent Y-o-Y, largely on improved pricing,” JM Financial said.
The Y-o-Y gains were aided by a low base, new capacities (organic and inorganic), better utilisation, and a richer product mix with higher premium cement sales.
Sequentially, though, performance softened.
The monsoon brought the usual demand dip, while an early festival season skewed buying patterns.
The goods and services tax (GST) rate cut triggered transitional disruptions.
Realisations and Ebitda weakened sequentially due to operating deleverage.
JM Financial estimated that Ebitda for its coverage universe fell 24 per cent quarter-on-quarter (Q-o-Q) to Rs 7,900 crore, mainly because of lower blended realisations.
Blended Ebitda per tonne dipped 18 per cent to Rs 952.
Industry-wide, realisation per tonne edged down 1 per cent Q-o-Q, and volumes fell around 8 per cent.
Pan-Indian cement prices slipped 2.5 per cent, weighed down by seasonality and sharper declines in late September following the GST rate cut, said Sehul Bhatt, director, Crisil Intelligence.
On costs, BOB Capital Markets noted that aggregate cost per tonne rose about 2 per cent Y-o-Y in Q2FY26.
Efficiency gains and a better fuel mix were offset by higher logistics and maintenance expenses.
Petcoke prices climbed Y-o-Y, while monsoon-hit logistics and planned kiln shutdowns pushed costs up about 5 per cent Q-o-Q.
Agrawal added that the industry has finally posted more than 5 per cent organic Y-o-Y growth after nearly six quarters, improving capacity utilisation.
A gradual revival in infrastructure demand — after a pronounced election-led slowdown — supported the pickup.
With this, companies pushed through price hikes of Rs 250–300 per tonne across regions, which should bolster Ebitda per tonne in the coming quarters.
Analysts expect the second half to remain strong, helped by post-monsoon recovery, steady private and public capex, and normalising construction activity.
The GST rate cut should aid low- to mid-income housing demand, supporting long-term growth.
Rural demand is also expected to stay firm.
October was soft due to festivals, extended monsoons, labour shortages, and restricted construction activity, but demand is expected to rebound in November and beyond.
In the third quarter of FY26 so far (until November 17), pan-Indian cement prices are up 1 per cent Y-o-Y, according to JM Financial.
Meanwhile, share prices of most large cement companies have been muted in recent months — a trend that could shift if demand strengthens.
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