Cement – Jul-Sep’26 Earnings Preview – Fuel cost surge to dent profitability; more hikes needed
Published on 08 Oct 2026
We expect our cement coverage universe to report Revenue/EBITDA/PAT growth of ~-7%/-22%/-35% QoQ and ~11%/4%/-37% YoY in Q2FY27, supported by resilient volumes and broadly stable realizations despite monsoon, mainly offset by rising input costs. Demand remained relatively strong despite monsoon, although some disruptions were seen in the East due to floods, while other regions remained relatively resilient. Our coverage universe volumes are expected to grow ~10% YoY to ~89.1mt, while overall industry volume growth is expected to grow at ~8% YoY. Realizations are expected to remain broadly stable sequentially, declining by ~0.4% QoQ (+1.1% YoY), as price hikes during September aid companies. On the cost front, higher pet coke, packaging and other operating costs are expected to weigh on profitability. Top Picks: UTCEM, JKCE & JSWCEMEN.
