Realization improves

Growth momentum to remain positive in Q2FY2026

- 

India's cement industry posted a strong performance in Q2FY 2026 over Q2FY 2025, driven by firmer cement prices, higher sales volume and a favorable base. Seasonal weakness and maintenance shutdown had an impact on sequential performance. Realization improved by Rs 250-300 per ton over the year, driven by better cement prices which helped cement companies report better operating margins. The average all-India cement prices were around Rs 355-365 per bag as against Rs 330-335 in Q2 FY 2025.

Net sales of 34 major cement producers increased 18.7% to Rs 62,635 crore in Q2 FY 2026 over Q2FY 2025. The operating profit margin (OPM) rose 206 basis points (bps) to 13.14%. Operating profit (OP) increased 41.0% to Rs 8228 crore. Profit before tax (PBT) was up 96.7% YoY to Rs 3098. Interest costs dropped 2.4%. Depreciation was higher by 16.5%.

PBT of 18 north Indian cement players increased 52.1% to Rs 2636 crore on a 20.0% increase in net sales to Rs 53141 crore in Q2 FY 2026 over Q2 FY 2025. PBT of 16 south Indian players stood at Rs 462 crore as against loss of Rs 158 crore on an 11.8% increase in net sales to Rs 9,494 crore in Q2 FY 2026 over Q2 FY 2025.