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Cement Margins Seen Rising 12–18 per cent in FY26

Healthy demand and GST cut to boost cement profits per tonne.

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Cement companies’ operating profit for fiscal year 2026 (FY26) is projected to grow by 12–18 per cent, reaching Rs 900–950 per metric tonne (MT), supported by robust demand, improved realisations, and stable input costs, according to ratings agency Icra.
In FY25, operating profit before interest, depreciation, tax and amortisation (OPBIDTA) stood at Rs 806 per MT, declining 16 per cent year-on-year due to weak realisations amid an extended monsoon and subdued government capital expenditure during the general elections.
Icra’s sample covers ACC, Ambuja Cements, JK Cements, JK Lakshmi Cement, The Ramco Cements, UltraTech Cement, Dalmia Bharat, Birla Corporation, Shree Cement, Sagar Cements, and Heidelberg Cement India, which together account for 74 per cent of industry capacity.
The recent GST cut on cement is expected to lower rural housing construction costs by 0.8–1.0 per cent, boosting volumes and supporting additional capacity. Average cement realisations are expected to rise 3–5 per cent in FY26.
Cement volumes increased by 8.5 per cent in the first five months of FY26, driven by strong demand from housing and infrastructure projects, despite early monsoons in some regions. During this period, cement prices rose 7.4 per cent year-on-year, particularly in northern and eastern markets. Input costs, especially for pet coke and freight, remain sensitive to global crude price movements and geopolitical factors.
Anupama Reddy, vice-president and co-group head of corporate ratings at Icra, said: “With the GST rate cut from 28 per cent to 18 per cent expected to be passed on to consumers, the average retail price of cement, currently Rs 350–360 per bag, will offer savings of Rs 26–28 per bag. Driven by strong demand, capacity additions may rise to 41–43 million metric tonnes per annum (MMTPA) in FY26 from 31 MMTPA in FY25, with the eastern region leading the growth in grinding capacity.”

Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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Concrete

Adani Group To Set Up Cement Factory In Madhya Pradesh

Chief Minister Mohan Yadav inaugurates plant in Guna

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Adani Group (Adani) will set up a cement factory in Madhya Pradesh, the chief minister of the state announced after an inauguration ceremony in Guna. The chief minister, Mohan Yadav, described the occasion as a historic day for the state and said the project will strengthen industrial capacity. The event was presented as a milestone in efforts to broaden manufacturing and attract large-scale investment. Officials said the facility will add to regional production capability and support related industries.

State officials outlined that the plant will enhance supply chains for construction and infrastructure projects across the region. The company will bring technical expertise and logistical resources to the site, with government agencies coordinating approvals and land allocation. Local suppliers and service providers will benefit from increased demand, and training initiatives will be developed to build workforce readiness. Officials indicated that the project complements broader plans to modernise industrial clusters in the state.

The state administration said it has facilitated clearances and infrastructure support to accelerate implementation. Local officials have coordinated with the company to ensure connectivity and utilities are in place ahead of commissioning. The chief minister emphasised that collaboration between private investors and the government aims to create sustainable economic growth. Community outreach programmes will address local concerns and establish grievance mechanisms as construction proceeds.

Officials said the inauguration in Guna marks a new phase in the state industrial story and will serve as a reference for future investments. Administrators noted that close monitoring and periodic reviews will guide timely execution and adherence to environmental and safety norms. The government affirmed its commitment to facilitating responsible industrial expansion while ensuring benefits reach local communities. Stakeholders will continue discussions on supply chain integration and long term maintenance arrangements.

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Concrete

Railways Boost Cement Movement by 170 Per Cent and Eye Fly Ash

New container wagons cut costs and speed turnaround

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Indian Railways has recorded a 170 per cent rise in cement movement in the last four months after reforms launched in November to promote rail based bulk cement logistics. The Union Railway Minister, Ashwini Vaishnaw, reviewed the container sector reforms and their implementation and described the shift as improving plant to market efficiency. The reforms introduced customised bulk cement tank containers and a bulk cement terminal policy to support multimodal handling and door to door solutions.

The new system has simplified loading and unloading by enabling mechanised operations and by reducing package losses compared with bagged cement transport. Since cement can move directly from manufacturing centres to consumption centres in standardised tank containers compatible with Ready Mix Concrete machines, two stages of handling have been eliminated and material loss has been reduced. The standard shape of the containers facilitates faster turnaround and lowers logistics costs for suppliers and builders.

The improved freight turnaround is helping to lower the delivered cost of cement, which can ease pressure on housing costs for the poor and middle class and support affordable construction. The reform is said to be environment friendly as dust generation during material transfer has fallen and fuel consumption and emissions have reduced due to modal shift from road to rail. The Make in India tank containers are designed for seamless movement between train and trailer and to enable efficient door to door movement while cutting congestion on roads.

Building on the cement reforms, officials were urged to tap the fly ash transportation market to convert industrial waste into national wealth. The minister noted that nearly 300 million metric tonnes (mn t) of fly ash is produced in the country while only about 13 million t is transported by rail and asked officials to substantially increase Railways share to serve brick kilns, cement industries and construction sites. Wider utilisation of fly ash should reduce pollution, promote recycling and lower construction material costs while strengthening sustainable freight movement across infrastructure sectors.

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