Giant cement makers report quantity progress in This autumn; count on to proceed momentum in FY26, ETCFO
Highlights
- Main cement corporations like UltraTech Cement, Ambuja Cements, and ACC have reported a quantity progress starting from 3.5 to 10 % within the March 2025 quarter, pushed by authorities infrastructure spending and rural restoration.
- Regardless of challenges with decrease year-on-year gross sales realization, the cement business is projected to attain an total progress of 6.5 to 7.5 % in FY26, with expectations of enchancment in working margins as a consequence of steady enter prices and a possible hike in cement costs.
- Shree Cement, the third-largest cement group by capability, recorded its highest quarterly gross sales quantity of 9.84 million tonnes within the March quarter, whereas Dalmia Bharat reported a 2.8 % enhance in gross sales quantity regardless of a decline in income as a consequence of softening costs.
Giant cement corporations have reported a quantity progress within the March 2025 quarter and count on enhanced efficiency in FY26 on higher gross sales realisation and steady demand. Main listed cement companies like UltraTech, Ambuja Cements, ACC, Shree Cements, and Dalmia Bharat have retained round 7 to 7.5 per cent progress for the cement business in FY26, following authorities spending on infrastructure initiatives and rural restoration.
Nevertheless, they’re cautious concerning the geopolitical tensions and altering commerce panorama.
Within the March quarter, cement makers reported positive factors in volumes, starting from 3.5 to 10 per cent and an enhanced capability utilisation on a year-on-year foundation.
Nevertheless, their topline numbers proceed to face challenges on account of decrease year-on-year gross sales realisation, although enter prices for coal, petcoke and diesel have been considerably cheaper.
The all-India common cement value was round Rs 350 per 50 kg bag in March 2025.
General, in FY25, cement costs declined by 7 per cent year-on-year to Rs 340/bag.
In FY24, the common costs stood at Rs 365/bag in opposition to Rs 375/bag in FY23, in keeping with an Icra report.
The score company expects an enchancment in working margins for the cement corporations in FY26, helped by tailwinds, as a marginal hike in cement costs and steady enter prices.
The cement business, which is witnessing consolidation the place two giant makers are snapping the small corporations within the quest for inorganic progress, noticed a decrease gross sales realisation as a consequence of falling costs.
In This autumn, UltraTech’s consolidated gross sales volumes reached 41.02 Million Tonnes (MT), and for your complete fiscal 2024-25, it achieved the very best gross sales volumes of 135.83 million metric tonnes for the 12 months, helped by acquisitions and ongoing expansions.
This autumn FY25 and April noticed some enchancment in costs, mentioned the highest administration of the Aditya Birla group flagship agency in a post-earnings name.
“We imagine that this quarter, cement demand total for the nation would have grown round 4 per cent. And in that backdrop, UltraTech has accomplished near 10 per cent quantity progress,” its CFO Atul Daga mentioned.
Equally, Ambuja Cements, the second-largest cement producer of the nation, reported a consolidated gross sales of 18.7 million tonnes within the March quarter, which was the “highest ever quantity in 1 / 4” for the corporate.
In FY25, Ambuja Cements’ whole consolidated earnings was Rs 37,649.01 crore. The corporate, which additionally owns ACC, Sanghi Industries and Penna Industries, crossed 100 million tonnes every year (MTPA ) capability and with extra expansions within the pipelines, it goals 118 MTPA by the tip of FY26.
Bangur household promoted Shree Cement, the third-largest cement group by capability, although it reported a decline of 14.9 per cent in its consolidated web revenue to Rs 575 crore for the March quarter, its income rose 2.42 per cent to Rs 5,532.02 crore.
Within the March quarter, Shree Cements’ whole gross sales quantity was 9.84 million tonnes (MT), which, in keeping with the corporate, is the “highest” quarterly quantity achieved by it.
Shree Cements additionally reported the next progress coming from the premium section and expects this pattern to proceed in FY26.
The corporate expects the cement business to attain 6.5-7.5 per cent demand progress, fuelled by infra initiatives, rural restoration and actual property momentum in FY26, although exterior challenges when it comes to geopolitical conflicts and commerce obstacles by key economies will persist.
Dalmia Bharat additionally reported a rise in gross sales quantity by 2.8 per cent to eight.6 MT, although its income from operations slipped 5 per cent to Rs 4,091 crore within the March quarter on account of softening costs.
South-based India Cements Ltd (ICL), now an Aditya Birla Group agency, has reported a web revenue of Rs 14.68 crore after a number of quarters, although its income from operations was down 3.11 per cent to Rs 1197.30 crore.
MP Birla Group agency Birla Company has reported a rise of 32.7 per cent in its web revenue to Rs 256.6 crore for the March quarter, and its income was up 6 per cent at Rs 2,814.91 crore.
Orient Cement, now owned by Adani Group’s Ambuja Cement, has reported a decline of 38.3 per cent in its web revenue to Rs 42.07 crore. The income of the cement maker, earlier owned by the CK Birla group, declined 7.07 per cent to Rs 825.18 crore within the March quarter.
In keeping with UltraTech, in FY25, the cement business ended with a capability of about 655 MT, up from 625 MT a 12 months in the past.
