Cement – Jul-Sep’25 Earnings Preview – From pricing power to profit pressure
Published on 08 Oct 2025
During Q2FY26, southern and eastern markets witnessed the sharpest price corrections, weighing on profitability. Consequently, cement companies under our coverage are likely to post a sequential decline of Rs150-240/t in EBITDA, post strong Q1FY26. As execution of GST rationalisation is almost completed across regions, we believe companies would not be able to increase prices immediately and would have to wait for strong demand uptick. We expect prices to improve once post-festive recovery in demand is seen, aided by GST benefits and overall enthusiasm in economy aiding realty sector. Key monitorables to watch out for are: 1) demand recovery post-Diwali, pace of infrastructure activity & GoI spending, 2) improvement in prices amid-GST rationalisation, and 3) trend of pet coke and other RM costs heading into H2FY26. Top Picks: UTCEM & ACEM
