In New Delhi, on February 8, leading cement manufacturers reported strong double-digit year-on-year growth in sales volumes during the fourth quarter of 2025, even as their profit margins faced pressure.
The companies remain optimistic about further improvements in demand and prices in the coming months, driven by moderate inflation, supportive tax incentives, and robust growth in the infrastructure sector.
Key industry players, including UltraTech, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement, and JSW Cement, experienced higher capacity utilization and increased sales volumes. However, overall profitability was affected by rising input costs, changes in labor regulations, and higher prices for pet coke and coal.
Despite these challenges, revenue growth was supported by increased demand for premium and blended cement products, as well as higher sales outside of traditional channels.
In addition to gray cement, companies also reported robust growth in their Ready Mix Concrete (RMC) business, which experienced significant expansion.
UltraTech, a leading cement manufacturer, reported a 15 percent increase in its consolidated sales volume to 33.85 metric tonnes (MT) in the fourth quarter.
However, its sales realization decreased by 0.4 percent compared to the previous year. Its capacity utilization rate was 77 percent, compared to 72 percent during the same period last year.
During the earnings call, Atul Daga, the CFO of the company, stated that cement prices remained relatively stable after the Goods and Services Tax (GST) changes. However, he noted that prices are expected to improve across all segments in the country.
"We have seen an increase in the cost of pet coke and coal, and the new labor code will also have an impact. Additionally, there is depreciation of the rupee. All these factors will affect the cement industry, and we expect prices to increase accordingly," he said.
The average cement price across India increased by 1 percent year-on-year in the fourth quarter of 2025 to Rs 330 per 50 kg bag.
According to an ICRA report, prices were up by 4 percent in the first nine months of fiscal year 2026 at Rs 345/bag (50Kg). In fiscal year 2025, cement prices declined by 7 percent year-on-year to Rs 340/bag.
Coal prices remain under pressure, the report noted, adding that pet coke prices increased by 10 percent year-on-year to Rs 12,280/MT in January 2026 and by 7 percent during the first 10 months of fiscal year 2026, despite stable diesel prices.
Ambuja Cements, a subsidiary of the Adani Group, which achieved the highest quarterly sales volume of almost 18.9 million tonnes, up 17 percent, and increased its market share to 16.6 percent. The company reported a sales realization increase of Rs 5 per bag, focusing on premium and blended cement products.
Vinod Bahety, the CEO of the company, stated that "volume will continue to grow double-digit" in the coming quarter. The company is balancing growth between "volume and value."
"Therefore, you will see further improvements in our sales realization, our blended cement, and our premium cement. We will continue to focus on both volume and value," he said in the earnings call while responding to a question.
Bahety remained "optimistic" about the demand for the cement industry.
"We also expect around 8 percent growth in Q4. Therefore, leading players will see double-digit growth again in the March quarter," he said.
Shree Cement Ltd, the country's third-largest cement group by capacity, although did not specify the total sales volume, but stated that it was up by 2 percent year-on-year. The company is "concentrating on value over volume" as there is a "significant difference between our sales price and the sales prices of competitors like UltraTech," said its management in the earnings call.
The company, which sold 2.7 million and 3.3 million tonnes of cement in November and December, stated that January is roughly in line with December 2025.
"We expect the same momentum to continue with a much higher realization, and it should automatically improve our capacity utilization," said Shree Cement management.
Dalmia Bharat's revenues improved by 10 percent year-on-year to Rs 3,506 crore, while EBITDA improved by 18 percent to Rs 602 crore.
Responding to a query in the earnings call, its MD & CEO Puneet Dalmia said: "Q3 saw softening of prices beyond GST cuts, especially in our key operating regions of East and South".
"Although Q4 has started with some improvement, we will see how prices pan out in the coming months," Dalmia said, adding he "remains optimistic that prices should be supportive going forward in the mid to long term".
JK Lakshmi Cement management said non-trade prices went down drastically post-GST reduction.
"I see prices are going to do better. One, because of improved demand. Second, the cost is going up. So, prices definitely will go up going forward. Non-trade prices have gone up in the majority of the market. Even trade is also likely to follow," the management said in the earnings statement.
Similarly, JSW Cement's volume sales were up 3.56 percent to 3.56 MT in Q3/FY26. However, its Cement realization in Q3 declined by 3.9 percent on a quarter-on-quarter basis. Its EBITDA per tonne declined on a QoQ basis, primarily due to softening of cement prices during Q3 FY26 and an increase in cost of raw materials, partially offset by operating leverage.
However, JSW Cement, part of the USD 23 billion JSW group, expects infrastructure-led growth driven by a strong Central and State capex thrust to boost demand for the sector.
