Cement majors register double-digit growth in Q3
Companies remain optimistic of further growth in demand in next few months, says report
image for illustrative purpose
New Delhi: Leading cement makers reported strong double-digit year-on-year growth in sales volumes during the December 2025 quarter, even as their realisations came under pressure. The companies remain optimistic of further improvement in demand and prices in the coming months, aided by benign inflation, supportive tax rationalisation measures and healthy infrastructure-led growth.
Industry leaders, including UltraTech, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement and JSW Cement, saw higher capacity utilisation and expansion in volumes. However, overall profitability was impacted by rising input costs, provisions under new labour codes and elevated prices of pet coke and coal.
Despite these challenges, toplines were supported by premiumisation, improved product mix and higher non-trade sales. Apart from grey cement, companies also reported robust growth in their Ready Mix Concrete (RMC) business, which registered high double-digit expansion.
Leading cement maker UltraTech reported a 15 per cent rise in its consolidated sales volumes to 33.85 metric tonnes (MT) in the December quarter.
However, its sales realisation declined 0.4 per cent on a year-on-year basis. Its capacity utilisation was 77 per cent compared to 72 per cent during the same period last year.
In the earnings call, its CFO Atul Daga said cement prices remained subdued post-GST change. However, an improvement is being witnessed in prices in all segments across the country.
"There have been cost increases in the cost of pet coke and coal, the new labour code will have its own impact, and rupee depreciation. All these will have an impact on the cement industry. And obviously, there is reason to pass on these cost escalations into prices," he said.
The all-India average cement price increased by 1 per cent year-on-year in December 2025 to Rs 330 per 50 kg bag. "In 9M FY2026, the prices were up by 4 per cent at Rs 345/bag (50Kg). In FY2025, cement prices declined by 7 per cent year-on-year to Rs 340/bag," according to an ICRA report.
Coal prices remain under pressure, it said, adding petcoke prices increased by 10 per cent year-on-year to Rs 12,280/MT in January 2026 and by 7 per cent during 10 months of FY2026, though diesel prices remained steady.
Adani Group firm Ambuja Cements, which recorded the highest-ever quarterly sales volume at almost 18.9 million tonnes, up 17 per cent, and improved market share to 16.6 per cent. It reported an improvement of Rs 5 per bag in sales realisations with its focus on premium and blended cement.
Its CEO Vinod Bahety said "volume will be growing double digit" in the coming quarter. The company is balancing growth between 'volume and value'.
"And therefore, you will see more accelerated improvement on my realisation, on my blended cement, on my premium cement. And therefore, even at the risk of losing some low EBITDA volume, which we will do, but we will play a balance game of volume and value," he said in earnings calls while replying to a query.
