Stories
Cement Stocks Eye Strong Q2 Volumes Yet Higher Costs Threaten Profits
C
CNBC TV18•15-10-2026, 11:40
Cement Stocks Eye Strong Q2 Volumes Yet Higher Costs Threaten Profits
- •Cement industry volume growth is estimated at 8-9% in Q2FY27, up from 7-8% in the previous two quarters.
- •UltraTech Cement and Shree Cement expect 12-13% growth, while JSW Cement and JK Cement could surge 22-26%.
- •Rising fuel, freight, and packaging costs are projected to add up to ₹150 per tonne in expenses.
- •Blended EBITDA per tonne could decline by ₹200-250 due to flat or lower cement prices and rising input costs.
- •Analysts warn that FY28 could face challenges from potential El Niño impacts and a higher base of comparison.
Key Questions Answered
Cement industry volume growth is estimated to be around 8-9% in the July-September quarter (Q2FY27), showing an increase compared to the 7-8% growth recorded in each of the previous two quarters.
JSW Cement and JK Cement are expected to post volume growth of 22-26%, while UltraTech Cement and Shree Cement could report growth around 12-13%, supported by capacity ramp-ups in the northern and central regions.
Higher fuel, freight, gypsum, and packaging expenses are expected to add ₹100-150 per tonne in costs, causing blended EBITDA per tonne to decline by ₹200-250 and absolute EBITDA to fall roughly 7% year-on-year.
