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Nomura says cement price hikes needed to offset fuel costs as UltraTech stays top pick
M
Moneycontrol•12-10-2026, 11:59
Nomura says cement price hikes needed to offset fuel costs as UltraTech stays top pick
- •Nomura believes the cement industry requires price hikes of Rs 12-15 per bag to fully offset rising fuel cost pressures.
- •Spot imported petcoke prices have surged around 25% quarter-on-quarter in October 2026 to reach $184 per tonne.
- •The industry has initiated pricing action with Rs 10 per bag hikes announced for October 2026.
- •Nomura named UltraTech Cement as its top pick in the sector.
- •Timely absorption of price hikes before the seasonal demand slowdown is critical to protecting margins.
Key Questions Answered
Nomura believes cement companies need price hikes of Rs 12-15 per bag to fully offset rising incremental fuel cost pressures. The industry has initiated pricing action with Rs 10/bag hikes announced for October 2026.
Spot imported petcoke prices rose around 25% quarter-on-quarter in October 2026 to $184 per tonne. Because fuel costs take 60-90 days to flow through due to transit times and inventories, this pressure will mostly impact 4QFY27F.
Nomura named UltraTech Cement as a top pick in its sector coverage. The brokerage also highlights Dalmia Bharat alongside UltraTech as preferred picks with a 'Buy' rating.
