Concrete

ICRA Flags Margin Pressure Despite Steel Demand Growth

FY26 demand seen up 8 per cent, but prices to cap profitability

Published

1 month ago

December 22, 2025

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Domestic steel demand in India is expected to grow by around 8 per cent in FY26, although softer steel prices are likely to keep profitability under pressure for producers, according to ICRA.

In a recent report, the rating agency projected the industry’s operating margin to remain largely flat at about 12.5 per cent in FY26, lower than its earlier expectation of an improvement. It noted that while demand growth remains healthy, incremental capacity additions have created a temporary surplus, resulting in continued pressure on steel prices.

“Although steel demand growth is projected at 8 per cent for FY26, additional supply has led to a near-term surplus, weighing on prices,” said Girishkumar Kadam, Senior Vice-President and Group Head, Corporate Sector Ratings, ICRA.

Domestic hot-rolled coil (HRC) prices, which had risen to Rs 52,850 per tonne in April 2025 following the imposition of a safeguard duty, corrected to around Rs 46,000 per tonne in November and are currently trading below import parity. At a global level, structural headwinds in China have pushed its steel exports to an all-time high of 88 million tonnes in the first nine months of calendar year 2025, further weighing on international prices.

Chinese HRC export prices averaged about USD 465 per tonne during the first seven months of FY26, compared with USD 496 per tonne in the corresponding period a year earlier. While India’s finished steel imports have declined sharply by around 33 per cent year-on-year in the current financial year, ICRA stressed that the continuation of the safeguard duty remains critical to prevent a resurgence in imports.

Under its base-case scenario, the agency expects domestic HRC prices to average around Rs 50,500 per tonne in FY26. Operating profit per tonne of steel production is estimated at USD 108, marginally lower than the USD 110 per tonne recorded in FY25. The overall sector outlook has been maintained at ‘Stable’.

ICRA also highlighted execution and balance-sheet risks linked to the industry’s large capacity expansion plans. Domestic steel producers are targeting capacity additions of 80–85 million tonnes over FY26–31, involving investments of USD 45–50 billion. However, the agency cautioned that unless earnings improve meaningfully, such large-scale investments could lead to a sharp rise in industry leverage over the medium term.

On green steel, Kadam said its share in India’s total steel demand is expected to rise from about 2 per cent, or roughly 4 million tonnes, in FY30 to nearly 40 per cent, or around 150 million tonnes, by FY50. However, he added that the economics remain challenging, with widespread adoption unlikely until green hydrogen prices decline to around USD 1.5–1.6 per kg, a level not expected in the near to medium term.

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Concrete

NBCC Wins Rs 550m IOB Office Project In Raipur

PMC Contract Covers Design, Execution And Handover

Published

6 days ago

January 20, 2026

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State-owned construction major NBCC India Ltd has secured a new domestic work order worth around Rs 550.2 million from Indian Overseas Bank (IOB) in the normal course of business, according to a regulatory filing.

The project involves planning, designing, execution and handover of IOB’s new Regional Office building at Raipur. The contract has been awarded under NBCC’s project management consultancy (PMC) operations and excludes GST.

NBCC said the order further strengthens its construction and infrastructure portfolio. The company clarified that the contract is not a related party transaction and that neither its promoter nor promoter group has any interest in the awarding entity.

The development has been duly disclosed to the stock exchanges as part of NBCC’s standard compliance requirements.

Concrete

Nuvoco Q3 EBITDA Jumps As Cement Sales Hit Record

Premium products and cost control lift profitability

Published

7 days ago

January 19, 2026

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Nuvoco Vistas Corp. Ltd reported a strong financial performance for the quarter ended 31 December 2025 (Q3 FY26), driven by record cement sales, higher premium product volumes and improved operational efficiencies.

The company achieved its highest-ever third-quarter consolidated cement sales volume of 5 million tonnes, registering growth of 7 per cent year-on-year. Consolidated revenue from operations rose 12 per cent to Rs 27.01 billion during the quarter. EBITDA increased sharply by 50 per cent YoY to Rs 3.86 billion, supported by improved pricing and cost management.

Premium products continued to be a key growth driver, sustaining a historic high contribution of 44 per cent for the second consecutive quarter. The strong momentum reflects rising brand traction for the Nuvoco Concreto and Nuvoco Duraguard ranges, which are increasingly recognised as trusted choices in building materials.

In the ready-mix concrete segment, Nuvoco witnessed healthy demand traction across its Concreto product portfolio. The company launched Concreto Tri Shield, a specialised offering delivering three-layer durability and a 50 per cent increase in structural lifespan. In the modern building materials category, the firm introduced Nuvoco Zero M Unnati App, a digital loyalty platform aimed at improving influencer engagement, transparency and channel growth.

Despite heavy rainfall affecting parts of the quarter, the company maintained improved performance supported by strong premiumisation and operational discipline. Capacity expansion projects in the East, along with ongoing execution at the Vadraj Cement facilities, remain on track. The operationalisation of the clinker unit and grinding capacity, planned in phases starting Q3 FY27, is expected to lift total cement capacity to around 35 million tonnes per annum, reinforcing Nuvoco’s position as India’s fifth-largest cement group.

Commenting on the results, Managing Director Mr Jayakumar Krishnaswamy said Q3 marked strong recovery and momentum despite economic challenges. He highlighted double-digit volume growth, premium-led expansion and a 50 per cent rise in EBITDA. The company also recorded its lowest blended fuel cost in 17 quarters at Rs 1.41 per Mcal. Refurbishment and project execution at the Vadraj Cement Plant are progressing steadily, which, along with strategic capacity additions and cost efficiencies, is expected to strengthen Nuvoco’s long-term competitive advantage.

Concrete

Cement Industry Backs Co-Processing to Tackle Global Waste

Industry bodies recently urged policy support for cement co-processing as waste solution

Published

2 weeks ago

January 15, 2026

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Leading industry bodies, including the Global Cement and Concrete Association (GCCA), European Composites Industry Association, International Solid Waste Association – Africa, Mission Possible Partnership and the Global Waste-to-Energy Research and Technology Council, have issued a joint statement highlighting the cement industry’s potential role in addressing the growing global challenge of non-recyclable and non-reusable waste. The organisations have called for stronger policy support to unlock the full potential of cement industry co-processing as a safe, effective and sustainable waste management solution.

Co-processing enables both energy recovery and material recycling by using suitable waste to replace fossil fuels in cement kilns, while simultaneously recycling residual ash into the cement itself. This integrated approach delivers a zero-waste solution, reduces landfill dependence and complements conventional recycling by addressing waste streams that cannot be recycled or are contaminated.

Already recognised across regions including Europe, India, Latin America and North America, co-processing operates under strict regulatory and technical frameworks to ensure high standards of safety, emissions control and transparency.

Commenting on the initiative, Thomas Guillot, Chief Executive of the GCCA, said co-processing offers a circular, community-friendly waste solution but requires effective regulatory frameworks and supportive public policy to scale further. He noted that while some cement kilns already substitute over 90 per cent of their fuel with waste, many regions still lack established practices.

The joint statement urges governments and institutions to formally recognise co-processing within waste policy frameworks, support waste collection and pre-treatment, streamline permitting, count recycled material towards national recycling targets, and provide fiscal incentives that reflect environmental benefits. It also calls for stronger public–private partnerships and international knowledge sharing.

With global waste generation estimated at over 11 billion tonnes annually and uncontrolled municipal waste projected to rise sharply by 2050, the signatories believe co-processing represents a practical and scalable response. With appropriate policy backing, it can help divert waste from landfills, reduce fossil fuel use in cement manufacturing and transform waste into a valuable societal resource.