Cement Sector Eyes Up to 80% Profit Surge in June Quarter on Price Gains

Still, in the cement sector, sources believe that cement firms will register higher net profits (30% to 80%) for the April-June quarter of the year compared with the same quarter of the previous year due to high cement prices and improved sales volume, especially across the southern and eastern regions.

According to the brokering firms analyzing the sector, companies such as UltraTech Cement, Shree Cement, Dalmia Bharat, ACC, and Ambuja are expected to post very healthy results regardless of the disruption tothe early monsoon. While rainfall hurt volume growth in the quarter, it did little to impede price momentum.

Cement average prices during the June quarter were the highest since December 2023. East and South saw sharp price hikes, which offset other cost pressures faced by manufacturers. Estimates in the industry indicate that prices were up ₹5-₹15 per bag in key states, thus propping up revenues and margins.

Cement dispatches so far have been largely stable despite the early arrival of the monsoons. In Q1 FY26, the leading sector company UltraTech Cement, with a 10% growth in consolidated sales volume, indicated buoyant demand trends.

According to analysts, while the quarter might give some companies near-term peak margins, the medium- to long-term outlook looks strong as demand enters a favorable phase during the rest of FY26. Near-term prospects of the cement sector growth lie in the expected government infrastructure spending and continued housing demand.

Apart from that, industry consolidation is expected to continue with the bigger companies acquiring the regional firms based on their potential in expanding footprint and bringing cost efficiencies. All these acquisitions are expected to provide long-term stimulus to profitability and pricing power.

Thus, the overall impressive June quarter results from the cement industry show its strength against seasonal and cost challenges while enabling another strong year on infrastructure-heavy growth.