NCL Industries Records Steady Cement Growth Amid Mixed Demand Trends

NCL Industries has reported a steady improvement in its core cement business during the third quarter of FY26, highlighting the resilience of demand in key construction markets despite pressure on other building material segments. The company posted a five per cent year-on-year increase in cement production for the quarter ended December 31, 2025, reflecting stable offtake and improved operational performance.

During the quarter, NCL Industries produced about 6.95 lakh tonnes of cement, compared with roughly 6.61 lakh tonnes in the corresponding period last year. Cement dispatches followed a similar trajectory, rising five per cent to nearly 6.93 lakh tonnes. The growth indicates continued traction from infrastructure works, housing projects, and regional construction activity, particularly in the company’s core southern markets.

However, the performance across NCL Industries’ non-cement verticals remained under pressure, pointing to diverging demand trends within the broader construction materials sector. Cement board production saw a sharp year-on-year decline of over 40 per cent, while dispatches also dropped significantly during the quarter. The ready-mix concrete segment recorded an 18 per cent fall in both production and sales volumes, reflecting subdued demand and cautious project execution in certain urban pockets.

Industry experts note that such divergence is increasingly visible across the sector, with bulk cement demand holding up better than value-added and project-linked products. Factors such as delayed commercial developments, tighter project financing, and selective capex deployment by private developers have weighed on segments like RMC and cement boards.

While the company did not issue forward guidance, management indicated that the quarter underscores varying consumption patterns across its portfolio. The stronger showing in cement provides some stability, even as softer demand in allied segments continues to pose challenges.

Looking ahead, NCL Industries’ performance will likely hinge on the pace of infrastructure spending, revival in private construction activity, and cost discipline. With government-led projects expected to sustain baseline demand for cement, the company’s ability to navigate volatility in non-core segments will be crucial for maintaining balanced growth through the remainder of FY26.