Cement Margins Seen Rising 12–18 per cent in FY26

Cement companies’ operating profit for fiscal year 2026 (FY26) is projected to grow by 12–18 per cent, reaching Rs 900–950 per metric tonne (MT), supported by robust demand, improved realisations, and stable input costs, according to ratings agency Icra. In FY25, operating profit before interest, depreciation, tax and amortisation (OPBIDTA) stood at Rs 806 per MT, declining 16 per cent year-on-year due to weak realisations amid an extended monsoon and subdued government capital expenditure during the general elections. Icra’s sample covers ACC, Ambuja Cements, JK Cements, JK Lakshmi Cement, The Ramco Cements, UltraTech Cement, Dalmia Bharat, Birla Corporation, Shree Cement, Sagar Cements, and Heidelberg Cement India, which together account for 74 per cent of industry capacity. The re