India’s leading cement manufacturers reported robust double-digit year-on-year growth in sales volumes during the December 2025 quarter, driven by higher capacity utilisation and infrastructure-led demand, even as realisations remained under pressure, earnings statements showed.
Industry players including UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement and JSW Cement posted strong topline momentum, aided by premiumisation, improved product mix and a rise in non-trade sales. However, profitability was constrained by elevated input costs, provisions under the new labour codes and higher prices of pet coke and coal.
Despite the headwinds, cement makers remained optimistic about demand and pricing recovery in the coming months, supported by benign inflation, tax rationalisation measures and continued government spending on infrastructure.
UltraTech Cement, the country’s largest producer, reported a 15 per cent rise in consolidated sales volumes to 33.85 million tonnes in the December quarter, with capacity utilisation improving to 77 per cent from 72 per cent a year earlier. However, its sales realisation declined 0.4 per cent year-on-year.
Speaking during the earnings call, CFO Atul Daga said cement prices had remained subdued following GST changes, though early signs of improvement were visible across regions. He noted that rising pet coke and coal prices, rupee depreciation and the implementation of labour codes would necessitate a gradual pass-through of costs into prices.
According to industry data, the all-India average cement price rose 1 per cent year-on-year to ₹330 per 50-kg bag in December 2025. ICRA said prices averaged ₹345 per bag in the first nine months of FY26, compared with ₹340 per bag in FY25, when prices declined sharply.
Ambuja Cements, part of the Adani Group, reported its highest-ever quarterly sales volume of nearly 18.9 million tonnes, up 17 per cent, while improving its market share to 16.6 per cent. The company recorded a ₹5 per bag increase in realisations, driven by blended and premium cement sales.
CEO Vinod Bahety said the company expected double-digit volume growth in the coming quarter, while maintaining a balance between scale and profitability. He added that demand momentum was likely to remain strong in the March quarter.
Shree Cement, India’s third-largest producer by capacity, reported a 2 per cent year-on-year increase in volumes, signalling a strategic shift towards value over volumes amid price divergence with peers. Management said momentum in January remained broadly in line with December.
At Dalmia Bharat, revenues rose 10 per cent year-on-year to ₹3,506 crore, while EBITDA increased 18 per cent to ₹602 crore. Managing Director and CEO Puneet Dalmia said prices had softened beyond GST cuts in key regions during the quarter, though early signs of improvement were emerging.
JK Lakshmi Cement and JSW Cement also flagged pricing pressure following GST reductions, even as volumes improved. JSW Cement’s sales volumes rose 3.56 per cent, though realisations declined on a sequential basis due to softer pricing and higher raw material costs.
Industry executives said the sector continues to benefit from strong public and private capital expenditure, with expectations that infrastructure-led growth will support demand and enable a gradual recovery in cement prices over the medium term. |
