Concrete

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

Stable costs and firmer realisations to lift profitability this fiscal.

Published

5 months ago

December 9, 2025

admin

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.

Up Next

Shree Cement Rolls Out Bangur Marble Cement in Odisha Market

Don't Miss

Innovations in Preheater Towers

Concrete

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

Published

12 hours ago

April 29, 2026

admin

UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.

Concrete

Towards Mega Batching

Optimised batching can drive overall efficiencies in large projects.

Published

2 days ago

April 28, 2026

admin

India’s pace of infrastructure development is pushing the construction sector to work at a significantly higher scale than previously. Tight deadlines necessitate eliminating concreting delays, especially in large and mega projects, which, in turn, imply installing the right batching plant and ensuring batching is efficient. CW explores these steps as well as the gaps in India’s batching plant market.

Choose well

Large-scale infrastructure and building projects typically involve concrete consumption exceeding 30,000-50,000 cum per annum or demand continuous, high-volume pours within compressed timelines, according to Rahul R Wadhai, DGM – Quality, Tata Projects.

Considering the daily need for concrete, “large-scale concreting involves pouring more than 1,000–2,000 cum per day while mega projects involve more than 3,000 cum per day,” says Satish R Vachhani, Advanced Concrete & Construction Consultant…

To read the full article Click Here

Concrete

Andhra Offers Discom Licences To Private Firms Outside Power Sector

Policy allows firms over 300 MW to seek distribution licences

Published

3 days ago

April 27, 2026

admin

The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

Approved applicants will be able to procure electricity directly from generators through power purchase agreements, a change officials said will create more competitive tariffs and reduce supply risk. Licence holders will use the Andhra Pradesh Transmission Company (APTRANSCO) network on payment of charges and will not need a separate distribution network initially.

Licences will be granted under the Electricity Act, 2003 framework, with the Central and State electricity regulators retaining authority over terms and approvals. The recent Electricity (Amendment) Bill, 2025 sought to lower entry barriers, enable network sharing and encourage competition, while the state commission will set floor and ceiling tariffs where multiple discoms operate.

Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

Analysts noted India’s data centre capacity is forecast to reach 10 gigawatts (GW) by 2030 and cited International Energy Agency estimates that global data centre electricity consumption could approach 945 terawatt hours by the same year. A one GW data centre needs an equivalent power allocation and one point five times the water, which authorities equated to 150 billion litres (150 bn litres).

Advisers warned that distribution licences will require close regulation and monitoring to prevent misuse and to ensure tariffs and supply obligations are met. Officials said the policy aims to balance investor requirements with regulatory oversight and could serve as a model for other states.