Cement Industry Builds on Strong Foundation Amidst Economic Growth
Driven by greater government spending on infrastructure, leading cement manufacturers saw solid growth in the June quarter, with a notable increase in cement volumes and sales. This trend is expected to persist into FY26, fueled by reduced input costs and stable pricing, despite some regional geopolitical challenges.
- Country:
- India
Cement manufacturers in India are experiencing robust growth, propelled by increased government spending on key infrastructure projects. The June quarter saw significant volume growth and improved sales realization, with giants like UltraTech and Ambuja reporting impressive figures. This trend is projected to continue into FY26, buoyed by a favorable economic environment and strategic acquisitions.
The industry's performance was further bolstered by lower input costs, such as a decline in coal and petcoke prices. This contributed to better earnings before interest, taxes, depreciation, and amortization (EBITDA) terms, following a challenging fiscal year 2025. Leaders in the sector are optimistic, citing improved prices, solid volume growth, and deeper channel engagement.
However, regional geopolitical tensions and early monsoons have posed challenges for some players, like Shree Cement and Ramco. Despite these hurdles, the industry remains optimistic, with expectations of continued growth driven by government programs and a stable price environment.
(With inputs from agencies.)
Google News