Cement major JSW Cement is increasing installed capacities and moving fast towards becoming a green cement producer and a preferred partner in the construction sector.
JSW Cement, a part of the US$ 13 billion JSW Group, is one of India’s fastest growing cement companies and India’s largest green cement company. It is a fast paving way to emerge as a leader in the construction sector, contributing to national projects and strengthening the nation’s infrastructure.
The company has consistently been increasing its revenue and maintaining a strong financial position, despite the onset of the COVID-19-induced pandemic, and remains well positioned to contribute towards AtmaNirbhar Bharat through its world-class cement products. It is positioning itself closer to being listed on the Indian bourses as it moves towards an initial public offering (IPO) towards the end of CY2022. In its quest to be ranked among India’s top five cement players in India and its focus on increasing share of premium products, the Company is expanding its domestic cement manufacturing capacity. With this, it is set to realise its objective of becoming a 25 MTPA producing cement company by 2025.
Notably, within a span of four years, it has more than doubled its manufacturing capacity from 6 MTPA in 2019 to 14 MTPA currently. The cement major plans to augment its capacity mostly through a combination of setting up brownfield and greenfield projects and through inorganic growth opportunities. Currently, it is in the process of adding two cement plants of 5 MTPA each in Rajasthan and Chhattisgarh.
Geographical diversification
The company has a strong business model with deep market presence in western, eastern and southern parts of India. It has established a reputation of having delivered superior quality products to some of India’s largest and prestigious infrastructural projects in the southern and western regions of the country. With a presence in Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Maharashtra, Orissa, and Goa, it has gained a foothold in the relative markets. The cement company draws its key strengths from the Group’s well-established track record in project execution and cost management.
Key risks
However, JSW Cement’s lower capacity utilisation and limited portfolio diversification is a key worry. Also, the substantial capacity expansion planned exposes the company to risks related to project execution. Further, being in the commodity sector, the company is highly susceptible to volatility in input cost and realisation and also to cyclicality in the cement sector. It is also exposed to volatility in input prices for key components including freight, fuel, power and raw material, which has the capability to impact its Operating Profitability Margin.
Icra reported that cement production volumes rose by eight point six per cent in the financial year 2026 to 491.4 million (mn) metric tonne (t). March output was 48.4 mn t, up four per cent year on year on a high base.
The agency projected that volumes are expected to grow by seven to eight per cent in the current financial year, supported by sustained demand from the housing and infrastructure sectors. Average cement prices were reported to have remained flat in March at Rs 340 per bag on a month on month basis, while prices for FY26 increased by two per cent to Rs 345 per bag year on year.
Among inputs, coal prices declined by 17 per cent year on year to USD 102 per t in April 2026 while petcoke prices rose sharply by 19 per cent month on month and 22 per cent year on year to around Rs 15,800 per t in April. Petcoke was higher by about five per cent year on year in FY26 and diesel prices were reported to have remained steady. Icra noted that coal, petcoke and diesel are expected to trend higher in FY27 and remain exposed to risks from the ongoing West Asia conflict.
The report emphasised that operating margins for Icra’s sample set of companies are estimated to moderate by 200 to 400 basis points (bps) in FY27 on account of a likely increase in input costs, with further downside risks should crude prices rise owing to geopolitical tensions. However, debt protection metrics are projected to remain comfortable and Icra maintained a stable outlook on the Indian cement sector.
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.
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…
