Cement companies delivered a strong performance in the June quarter, driven by higher realisations from price hikes and solid volume growth. Most players posted double-digit volume gains, supported by last year’s low base during the election period, rising commercial activity, and faster execution of government projects. Lower operating costs also boosted EBITDA per tonne significantly.
Ambuja (up 16.5 per cent), UltraTech Cement (15.3 per cent), JK Cement (14.3 per cent), and Sagar Cements (11.5 per cent) led the rebound in demand. In contrast, Shree Cement’s volumes fell 7.2 per cent due to geopolitical issues in the northern region, Dalmia Bharat declined 5.4 per cent following the end of Jaypee tolling volumes, and Ramco Cements dropped 6.8 per cent on account of early monsoon onset, according to Systematix Institutional Equities.
Realisation growth averaged 6 per cent year-on-year and 5 per cent sequentially, largely led by price hikes in the southern markets. This helped lift EBITDA per tonne by 35 per cent year-on-year and 17.8 per cent sequentially. Softer coal and crude prices eased energy costs, while other operating expenses also moderated. Freight costs, however, inched up 2.6 per cent as expansion into new geographies offset logistics efficiencies.
On the bottom line, Ramco Cements’ net profit surged 142.3 per cent year-on-year, while Shree Cement, JK Cement, and Dalmia Bharat reported growth of 94.8 per cent, 65.6 per cent, and 46.9 per cent, respectively.
In August 2025, cement prices remained flat month-on-month but stayed higher year-on-year. The monsoon dampened construction activity, especially in rural and infrastructure projects, limiting offtake and curbing price hikes. Regional trends showed East prices at Rs 353 per bag, North at Rs 365, South up Rs 10 at Rs 370 (with a Rs 5–10 correction expected next quarter), and Central down Rs 5 to Rs 355. Nationally, prices rose 1.2 per cent month-on-month to Rs 360 per bag.
Despite the seasonal slowdown, the brokerage remains positive on the sector, citing expectations of a second-half recovery driven by infrastructure demand, urban housing growth, softer input costs, and greater adoption of green power. It projects 7–8 per cent volume growth in H2 FY26, with UltraTech and Ambuja as top picks, setting price targets of Rs 14,481 and Rs 722, respectively.
