Top Cement Firms See Demand Revival Despite Price Pressures and Global Risks
New Delhi, May 18 — India’s leading cement manufacturers have reported notable volume growth in the March 2025 quarter, expressing optimism for FY26 backed by better sales realisation, infrastructure spending, and rural demand revival. Despite facing pressure from lower sales realisations, stable input costs and operational efficiencies are expected to bolster margins.Steady Growth Projections for FY26
Top cement players such as UltraTech, Ambuja Cements, ACC, Shree Cements, and Dalmia Bharat have projected a 7 to 7.5 per cent industry-wide growth for FY26. This positive outlook is primarily driven by continued government investment in infrastructure and a recovering rural market.However, the sector remains cautious about global geopolitical tensions and potential shifts in trade policies that could disrupt supply chains or demand patterns.
March Quarter Performance: Volume Up, Revenue Mixed
In Q4 FY25, cement companies recorded volume growth between 3.5 to 10 per cent, supported by improved capacity utilisation. Yet, year-on-year topline figures were impacted due to falling realisations. Input costs saw some relief, with coal, petcoke, and diesel prices trending lower.The all-India average cement price stood at ₹350 per 50 kg bag in March 2025, with a 7 per cent YoY decline over FY25 to ₹340/bag. This follows a steady fall from ₹375/bag in FY23 to ₹365/bag in FY24, according to ICRA.
Despite the price pressures, ICRA forecasts better operating margins in FY26, owing to stable costs and potential price upticks.
Company Highlights
UltraTech Cement
- Q4 sales volume: 41.02 million tonnes
- FY25 total volume: Record high of 135.83 MT
- CFO Atul Daga noted that while overall cement demand grew 4 per cent, UltraTech outpaced with nearly 10 per cent growth.
- Price improvements were seen during Q4 and into April.
Ambuja Cements
- Q4 sales: 18.7 MT, the highest-ever quarterly volume
- FY25 income: ₹37,649.01 crore
- Total capacity crossed 100 MTPA, with a target of 118 MTPA by FY26, including contributions from ACC, Sanghi Industries, and Penna Industries.
Shree Cements
- Q4 net profit: Down 14.9% to ₹575 crore
- Revenue: ₹5,532.02 crore, up 2.42%
- Sales volume: 9.84 MT, the company's highest quarterly volume
- Growth was stronger in the premium cement segment
- Projects 6.5–7.5% demand growth in FY26
Dalmia Bharat
- Sales volume: Up 2.8% to 8.6 MT
- Revenue: Fell 5% to ₹4,091 crore due to lower prices
India Cements Ltd (ICL)
- Net profit: ₹14.68 crore after multiple quarters in red
- Revenue: Dropped 3.11% to ₹1,197.30 crore
Birla Corporation (MP Birla Group)
- Net profit: Rose 32.7% to ₹256.6 crore
- Revenue: Increased 6% to ₹2,814.91 crore
Orient Cement (now under Adani Group)
- Net profit: Declined 38.3% to ₹42.07 crore
- Revenue: Fell 7.07% to ₹825.18 crore
Industry Consolidation and Expansion
The cement sector is undergoing consolidation, with larger firms acquiring smaller players to drive inorganic growth. According to UltraTech, India’s cement capacity rose from 625 MT in FY24 to 655 MT in FY25, with more additions expected as companies ramp up expansion plans.As FY26 begins, the Indian cement industry stands on firmer ground, leveraging rural recovery, infra momentum, and better margins to sustain growth—even as it navigates global uncertainties.