Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

Shrivats Singhania, Deputy Managing Director, JK Lakshmi Cement, believes that companies leading India’s next decade of growth will be those that have invested earliest in low-carbon formulations, digital manufacturing and customer-driven product innovation.

JK Lakshmi Cement’s launch of Green PRO LC3 was not a marketing move. It was a signal of where the company’s innovation pipeline is pointed. In this exclusive interaction, Shrivats Singhania, Deputy Managing Director, JK Lakshmi Cement, talks about innovations in cement that goes well beyond incremental efficiency gains. He maps the technologies reshaping cement manufacturing today, explaining why customer requirements are as important as laboratory research in defining an innovation roadmap.

What are the most significant innovations currently transforming cement manufacturing and product development?
The cement industry is witnessing a shift from conventional manufacturing towards a more sustainable, technology-enabled, and performance-driven future. Among the most significant innovations are low-carbon cement technologies, alternative fuels and raw materials, advanced process automation, renewable energy integration and digital manufacturing systems.
One of the most promising developments is Limestone Calcined Clay Cement (LC3), which has the potential to significantly reduce the carbon footprint of cement production while maintaining high standards of strength and durability. Earlier this year, JK Lakshmi Cement introduced Green PRO LC3, one of India’s first commercially available LC3 cements. By partially replacing clinker with calcined clay and limestone, LC3 can reduce CO2 emissions by up to 40 per cent while offering enhanced durability, improved resistance to chloride and sulphate attack, and lower heat of hydration qualities particularly valuable for large infrastructure and high-exposure environments.
Alongside material innovation, digital technologies such as AI-enabled process optimisation, predictive maintenance, IoT-based monitoring systems, and advanced analytics are helping manufacturers improve operational efficiency and product consistency. Together, these innovations are reshaping industry by enabling growth that is both economically and environmentally sustainable.

How is innovation helping the industry improve efficiency while reducing environmental impact?
Innovation is enabling the cement industry to address one of its most important challenges producing more with fewer resources and lower emissions. Across the value chain, manufacturers are deploying technologies that simultaneously improve operational efficiency and advance sustainability goals. For example, greater adoption of alternative fuels, waste heat recovery systems, renewable energy, and digital process controls is helping reduce energy consumption and optimise resource utilisation. Data-driven manufacturing allows plants to monitor operations in real time, improve equipment reliability, minimise downtime, and reduce wastage, resulting in both environmental and economic benefits.
Meaningful progress is also being achieved through material innovation. The growing use of blended cements and next-generation products such as LC3 reduces dependence on clinker, the most carbon-intensive component of cement production, thereby lowering embodied carbon without compromising performance.
Within our operations, initiatives such as increasing thermal substitution rates through alternative fuels, expanding waste heat recovery capacity and accelerating renewable energy adoption have demonstrated how sustainability and operational excellence can reinforce each other. The industry’s future will increasingly be defined by innovations that improve efficiency while supporting long-term decarbonisation.

What role does R&D play in driving your company’s innovation strategy?
Research and development (R&D) form the backbone of our innovation strategy. Our R&D efforts focus on enhancing product performance, improving resource efficiency, reducing clinker factor, and exploring low-carbon cement solutions. We continuously evaluate new raw materials, alternative fuels, supplementary cementitious materials, and process improvements that can enhance product quality while reducing environmental impact. R&D also helps us develop customer-centric solutions that address evolving construction requirements related to durability, strength, and sustainability.
As infrastructure projects become increasingly sophisticated, innovation supported by strong R&D capabilities will remain essential in delivering next-generation cement solutions.

How are alternative materials and blended cements reshaping the market?
Alternative materials and blended cements are becoming central to the industry’s decarbonisation journey. By incorporating materials such as fly ash and slag, blended cements significantly reduce clinker consumption, thereby lowering carbon emissions while maintaining or enhancing performance characteristics. The market today is increasingly focused on sustainability without compromising quality. Customers are becoming more aware of lifecycle performance and environmental impact, which is accelerating the adoption of blended cement products. For manufacturers, this shift presents an opportunity to create products that deliver superior durability, improved workability, and lower embodied carbon, supporting both infrastructure development and sustainability goals.

In what ways is digitalisation improving production quality, consistency, and operational performance?
Digitalisation has become a critical differentiator in modern cement manufacturing. Technologies such as IoT, artificial intelligence, machine learning, and advanced analytics provide real-time visibility into plant operations and enable data-driven decision-making. At JK Lakshmi Cement, digital initiatives support predictive maintenance, process optimisation, quality control, and logistics management. Real-time monitoring helps maintain product consistency while reducing downtime and operational inefficiencies. Automation and analytics also enable faster response to process variations, ensuring higher reliability, improved productivity and better resource utilisation across the value chain.

How do customer requirements influence your innovation roadmap?
Customer expectations today extend beyond basic product performance. They seek solutions that offer durability, ease of application, sustainability and long-term value.
Our innovation roadmap is therefore strongly influenced by market feedback and evolving construction practices. We regularly engage with engineers, contractors, architects, channel partners and end consumers to understand emerging requirements. These insights guide our product development efforts and help us create specialised cement solutions that address specific applications while maintaining the highest standards of quality and reliability.

What challenges do companies face when scaling and commercialising new cement technologies?
One of the biggest challenges is balancing innovation with commercial viability. New technologies often require substantial capital investments, extensive testing, regulatory approvals and ecosystem readiness before they can be deployed at scale. In addition, technologies such as carbon capture, alternative clinker systems and advanced decarbonisation solutions are still evolving and require collaboration across industry, government, technology providers, and academia. Another challenge is ensuring that innovations remain cost-effective and deliver tangible value to customers while supporting sustainability objectives.

Which emerging innovations do you believe will have the greatest impact on the industry in the coming decade?
Over the next decade, I believe three innovation areas will fundamentally reshape the cement industry.
First, carbon capture, utilisation and storage technologies will play a crucial role in achieving net-zero ambitions. Second, alternative clinker technologies and low-carbon cement formulations will significantly reduce the industry’s carbon footprint. Third, digitalisation powered by AI, machine learning, and advanced automation will create highly efficient and intelligent manufacturing ecosystems.
Alongside these developments, greater adoption of renewable energy, circular economy practices and alternative fuels will accelerate the industry’s transition toward sustainable growth while supporting India’s infrastructure ambitions.