Concrete

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

Stable costs and firmer realisations to lift profitability this fiscal.

Published

9 months ago

December 9, 2025

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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.

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Concrete

Cement Demand Strong As Prices Remain Stable

Volumes rise amid steady trade pricing and higher fuel costs

Published

1 day ago

September 11, 2026

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Channel checks show cement demand remained healthy with volume growth estimated at six to seven per cent in July and August 2026. Trade prices were broadly stable while non-trade prices were volatile in the East, and attempted hikes were rolled back amid higher competition. Average fuel costs rose in August by five to nine per cent, lifting spot petcoke and coal prices.

All-India trade price remained flat month on month in August as increased rake supplies and competition offset early increases. Monsoon related demand softness limited sustained hikes and dealers indicated further attempts would depend on demand trends. Combined July and August volumes were estimated at six to seven per cent, supported by infrastructure spending while retail housing remained weather sensitive.

In the South, a Rs20 a bag hike in August did not hold and prices stayed flat month on month, while dealers planned Rs25 to Rs30 a bag from fifth September 2026 but with uncertain sustainability. In the East, trade prices were unchanged and non-trade prices corrected by Rs15 to Rs20 a bag amid weak construction in West Bengal, Jharkhand and Odisha.

The West remained most resilient on pricing and demand despite attempted hikes of Rs10 to Rs15 a bag, and Gujarat saw relatively better volumes in August. North and Central markets kept prices range bound as players focused on ramping up utilisation of new capacity, with schemes of up to Rs2 to Rs3 a bag used to meet month-end targets. Overall construction activity improved as the monsoon eased, aiding a pickup in several states.

Fuel cost pressures persisted, with South African coal at USD114 a t and petcoke around USD146 to USD147 a t in August, while spot imported petcoke and coal were higher. Imported coal consumption cost stood at Rs2.07 per Kcal and petcoke at USD2.11 per Kcal. Analysts estimate the all-India trade spread to decline by Rs90 to Rs100 a t quarter on quarter, weighing on near-term profitability and they prefer UltraTech Cement (UTCEM), JK Cement (JKCE) and Grasim Industries (GRASIM).

Concrete

Aditya Birla Group Launches Ultravolt Wires And Cables Business

UltraTech extends building solutions into electrical wiring

Published

3 days ago

September 9, 2026

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Aditya Birla Group has entered the wires and cables market through Ultravolt, extending UltraTech’s move from building materials into building solutions. The shift builds on UltraTech Building Solutions, a multi-category platform that already addresses customers across different stages of construction and extends beyond cement into ready-mix concrete, waterproofing, tile-fixing solutions and mortars.

The company intends to enter with scale, seeking presence across 100,000 retailers in more than 500 districts and availability through 5,000 plus UltraTech Building Solutions (UBS) outlets. The portfolio spans house wires, light-duty cables, communication cables, solar cables and low-tension and industrial cables to meet changing electrical requirements driven by solar installations, communications infrastructure and industrial automation.

An upstream advantage begins in the Group’s metals ecosystem, with conductor quality central to product performance. Ultravolt wires will use TruePure Copper, defined as 99.97 per cent pure electrolytic-grade annealed copper sourced from Hindalco, providing greater control over raw material quality and provenance and supporting electrical performance, safety and durability.

The business also targets the electrician community as a decisive influence on product choice and installation quality. The Wires and Cables Business has launched a Skill India Electrician Training Programme in partnership with the Electronics Sector Skills Council of India that aims to train and certify more than 40,000 electricians across India over the next year, focusing on safe wiring practices, correct installation and advanced wire technologies and offering Skill India-aligned certification and identification credentials.

The move combines market opportunity, UltraTech’s construction ecosystem, manufacturing capability and Group-level resources. A large Gujarat facility, advanced machinery and in-house testing and research and development underpin the product strategy, which is designed for both traditional and emerging applications. The ambition is to build a scaled national brand and become one of the top two players within five years, making the Group an integral participant in modern building infrastructure.

Concrete

Ramco Cements Mine Restoration Gets Global Biodiversity Certification

Pandalgudi mine restoration receives Advanced Certification from TGBS

Published

3 days ago

September 9, 2026

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The ecological restoration of Ramco Cements’ limestone mine at Pandalgudi in Virudhunagar district, Tamil Nadu, has received international recognition with the site being awarded Advanced Certification by The Global Biodiversity Standard (TGBS). The recognition makes Pandalgudi the first site in Peninsular India to receive the certification and places it among globally recognised biodiversity restoration projects.

TGBS, recognised by the International Union for Conservation of Nature (IUCN) and the Convention on Biological Diversity (CBD), assesses biodiversity restoration projects based on scientific evaluation and their contribution to ecosystem recovery and local communities. The certification is supported by more than 250 scientists and academics worldwide.

Spread across over 500 acres of worked-out mine areas, the restoration project includes a certified 234-acre site. Initiated in 2018 with technical support from Auroville Botanical Gardens, the project began plantation activities in 2019 and is expected to be completed by 2027. More than 430,000 native trees and shrubs belonging to 150 ecologically significant species have been planted at the site.

The restored mine, which was once a barren landscape with limited biodiversity, has recorded over 72 bird species and 53 butterfly species. The project has also captured an estimated 10,000 tonnes of carbon dioxide over the past seven years, supporting broader sustainability and carbon reduction goals.

Opened officially in 2022, the site has attracted more than 13,000 visitors through educational programmes for schools, colleges and training institutions. The restoration initiative has also contributed to the development of the Rajapalayam Masterplan and supported Tamil Nadu’s carbon neutrality ambitions.

Commenting on the achievement, Mr P. R. Venketrama Raja, Chairman, Ramco Group, said the company aims for the Pandalgudi restoration project to serve as an inspiration and blueprint for the mining industry in India. Dr David Bartholomew, CEO, The Global Biodiversity Standard, highlighted the project’s long-term commitment to biodiversity recovery and independent assessment of ecological outcomes.

The certification reinforces Ramco Cements’ focus on sustainable mining practices and ecological restoration as part of its commitment towards a carbon-neutral future.