Cement Producers Anticipate Significant Profit Growth in Q1 FY26
Cement makers set to see sharp Q-o-Q growth in profits
The Economic Times
Image: The Economic Times
Cement manufacturers in India are projected to achieve a 50-100% sequential increase in profits for the January-March 2026 quarter, driven by improved margins and strong volume growth. Analysts expect average Ebitda per tonne to rise to ₹800-1,200 amid a 16% sector-wide volume increase.
- 01Cement producers are expected to see a 50-100% increase in profits for Q1 FY26.
- 02Ebitda per tonne is projected to rise to ₹800-1,200 from ₹600-1,000 in the previous quarter.
- 03Volume growth for the sector is anticipated at 12-25% sequentially.
- 04Cement prices rose by only 1% sequentially, falling short of the expected 3-4% increase.
- 05The industry's performance will depend on pricing strategies amid rising raw material costs.
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Cement producers in India are poised for a remarkable 50-100% increase in profits for the January-March 2026 quarter, marking the first improvement in margins in three quarters. Analysts attribute this growth to strong double-digit volume increases, with sector-wide volumes expected to rise by approximately 16%. The average Ebitda per tonne is forecasted to reach ₹800-1,200, up from ₹600-1,000 in the December quarter. Despite a slight increase in cement prices to ₹338 per 50 kg bag, this was lower than the ₹363 recorded a year earlier and below expectations of a 3-4% rise. Analysts from Centrum Broking suggest that the cement industry will finish FY26 on a positive note, driven by robust volume and stable costs, although future performance will hinge on companies' pricing strategies in light of rising raw material costs and new capacity coming online.
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The anticipated profit growth in the cement sector could lead to increased investment and job creation within the industry, benefiting local economies.
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