India’s cement sector is expected to post strong year-on-year profit growth in the second quarter of the financial year 2025-26 (FY26), supported by better pricing and lower input costs, though muted volumes remain a drag.

EBITDA for the sector is likely to rise about 50% year-on-year (YoY), driven by a 5-6% increase in cement prices and easing fuel costs, according to industry estimates. The gains come on the back of a low base in the same quarter last year, but volume growth is expected to stay below 5%, weighed down by heavy monsoons, an early festive season, and dispatch disruptions around the September 22 goods and services tax (GST) rate revision.

Mergers and acquisitions (M&A) activity has helped some players sustain growth, and among large caps, Ultratech Cement and Ambuja Cem

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