Cement majors post double-digit volume growth in Q3, expect price recovery ahead

New Delhi: Leading cement manufacturers reported strong double-digit year-on-year growth in sales volumes during the December 2025 quarter, even as realisations remained under pressure due to subdued pricing and higher input costs.

The industry, however, remains optimistic about a pickup in demand and prices in the coming months, supported by benign inflation, tax rationalisation measures and sustained infrastructure-led growth.

Major players including UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement and JSW Cement recorded higher capacity utilisation and volume

expansion.

Profitability, however, was weighed down by rising costs of petcoke and coal, provisions under new labour codes and other input cost pressures.

Toplines were partially supported by premiumisation, improved product mix and higher non-trade sales. Companies also reported strong double-digit growth in their Ready Mix Concrete (RMC) businesses.

UltraTech Cement posted a 15 per cent rise in consolidated sales volumes to 33.85 million tonnes (MT) in the December quarter, with capacity utilisation improving to 77 per cent from 72 per cent a year earlier.

However, sales realisation declined marginally by 0.4 per cent year-on-year.

Chief Financial Officer Atul Daga said cement prices remained subdued following the GST change, though an improvement is now visible across regions. He added that higher petcoke and coal prices, the new labour code and rupee depreciation are likely to push companies to pass on part of the cost escalation.

According to ICRA, the all-India average cement price rose 1 per cent year-on-year to Rs 330 per 50-kg bag in December 2025, while prices during the first nine months of FY2026 were up 4 per cent at Rs 345 per bag.

Petcoke prices rose 10 per cent year-on-year to Rs 12,280 per tonne in January 2026, while coal prices remained under pressure.

Ambuja Cements, part of the Adani Group, reported its highest-ever quarterly sales volume of nearly 18.9 MT, up 17 per cent year-on-year, and improved its market share to 16.6 per cent.

The company also reported a Rs 5 per bag improvement in realisations driven by higher blended and premium cement sales. CEO Vinod Bahety said volumes are expected to grow at a double-digit pace in the coming quarter, with the company balancing volume growth and value enhancement.

He remains bullish on demand, projecting around 8 per cent industry growth in the March quarter.

Shree Cement reported a 2 per cent year-on-year increase in volumes and said it is prioritising value over volumes amid significant price divergence with peers.

Dalmia Bharat posted a 10 per cent rise in revenue to Rs 3,506 crore and an 18 per cent increase in EBITDA to Rs 602 crore, though prices softened beyond GST cuts in key regions.

Other players, including JK Lakshmi Cement and JSW Cement, also flagged pricing pressure in December quarter but remain optimistic about improvement driven by rising costs and infrastructure-led demand.