Cement – Sector Update – Price hikes return; sustainability is the key
Published on 11 May 2026
We believe recent price hikes across regions are necessary to offset the sharp increase in input costs, including higher pet coke, packaging (PP bags), fuel and other raw material costs, as highlighted by most companies during Q4FY26 commentaries. While the hikes implemented so far should partly mitigate the expected increase in costs (~Rs100-150/t), sustainability of these hikes remains critical and will depend on demand conditions. In markets where price hikes were partially rolled back due to weak demand, we believe companies may attempt to restore pricing again going ahead, especially if input cost pressures persist or intensify further. We remain positive on cement companies with pan-India presence and few smaller companies where valuations have come off significantly. Top Picks: UTCEM, JKCE, ACEM & JKLC
