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Cement Makers Set for ~250 bps Margin Boost on Strong Realisations

Stable costs and firmer realisations to lift profitability this fiscal.

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Cement manufacturers are expected to record a 250–300 basis points (bps) expansion in operating margins this fiscal, supported by improved realisations driven by higher volumes, greater premiumisation and broadly stable input costs. Industry volume is projected to grow 6.5–7.5 per cent this fiscal, up from 5 per cent in the previous year. While the first half saw a moderate 5 per cent on-year rise—recovering from flat demand a year earlier—the second half is likely to strengthen with 8–9 per cent growth backed by pent-up demand and better liquidity.
Pan-India cement prices are expected to remain rangebound at Rs 354–359 per 50 kg bag, fluctuating within ±1 per cent. Although the reduction in GST from 28 to 18 per cent will exert downward pressure on retail prices, premiumisation and healthy demand are expected to offset the impact and support higher realisations. This trend is reflected in an assessment of 14 major manufacturers, representing nearly 85 per cent of industry revenues.
“The average pan-India cement prices saw a modest 3 per cent on-year increase in the first half. However, the full impact of GST changes will be felt in the third quarter, resulting in a 4–5% decline in retail prices in the second half. Despite subdued pricing, the industry is poised for higher realisations this fiscal, driven by healthy volume growth,” said Sehul Bhatt, Director, Crisil Intelligence.
Ex-GST prices are expected to rise 3–4 per cent on-year in the coming quarter, though overall prices may soften because of the tax revision. Realisations grew ~5 per cent in the first half and are likely to ease to 0–2 per cent growth in the second, translating to a full-year increase of 2.5–3.5 per cent.
Regionally, the east and south may see a 0–2 per cent uptick after sharp declines last fiscal, while other regions could witness a 2–3 per cent drop. On the cost front, power and freight—together forming 54–55 per cent of expenses—are expected to decline 2–3 per cent and 1–2 per cent this fiscal. Raw material costs may remain elevated due to higher limestone prices, but overall costs are expected to stabilise, lifting operating margins to 18–20 per cent from ~16 per cent last year.
“After a ~9 per cent fall last fiscal, Australian thermal coal prices are set to drop another 17–18 per cent this year amid higher supply and softer global demand. Brent crude is also projected to fall 17–18 per cent to $62–67 per barrel,” said Sachidanand Choubey, Associate Director, Crisil Intelligence. While petcoke has seen a mild uptick, easing coal, crude and steady diesel costs will continue to provide relief. Any unexpected spike in energy prices due to geopolitical or regulatory shifts, however, remains a key risk.

Concrete

NDMC Rolls Out Intensive Sanitation Drive Across Lutyens Delhi

Municipal body intensifies cleaning and monitoring across the capital

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The New Delhi Municipal Council has launched an intensive sanitation drive across Lutyens’ Delhi, aiming to raise cleanliness standards in the capital’s central precincts. The programme will combine enhanced manual sweeping with mechanised cleaning and systematic waste removal to cover parks, heritage precincts and prominent thoroughfares. Authorities described the initiative as a sustained effort to improve public hygiene and reduce environmental hazards while maintaining the area’s civic image.

Operational teams have been instructed to prioritise drain clearing and litter hotspots, with special attention to markets and transit nodes that attract heavy footfall. Coordination with city utilities and waste processing units will be stepped up to ensure timely collection and disposal, and supervisory rounds will monitor adherence to cleaning schedules. Officials also intend to use data-driven planning to deploy resources efficiently and to identify recurring problem areas.

The council plans to engage resident welfare associations and business stakeholders to foster community participation in maintaining cleanliness and to support behavioural change campaigns. Public communication will be amplified through notices and outreach to encourage responsible waste handling and to inform residents about collection timings and segregation norms. Enforcement measures for littering and unauthorised dumping will be reinforced as part of a broader strategy to deter violations and sustain cleanliness gains.

The move reflects a focus on urban sanitation that officials link to public health priorities and to the city administration’s commitment to maintaining civic amenities. Monitoring mechanisms will include regular reporting and inspections to review outcomes and to recalibrate operations where necessary, according to municipal sources. The council emphasised that continued community cooperation will be essential for the drive to deliver lasting improvements in the appearance and hygiene of the capital’s core areas.

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Concrete

UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

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UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

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Concrete

Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

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Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.

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