Cement sector set for 63% earnings surge in FY26

India's cement industry is poised for sharp earnings rebound in the Financial Year 2026 (FY26), with sector-wide profit expected to grow over 63 per cent yearon-year, driven largely by a favourable low base and continued cost-reduction efforts across companies, according to a sectoral update by Dolat Capital.

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The report added that this marks one of the strongest earnings recoveries for the sector in recent years, even as pricing pressures persist. "The earnings trajectory is set to reverse sharply for FY26 (>63 per cent YoY growth for coverage universe), led by low base on volume/prices coupled with ongoing cost reduction," the report added. India's cement sector showed mixed performance in the second quarter (Q2) of FY26, with subdued volume growth amid seasonal weakness. According to the sectoral update, the sector's rebound is underpinned by robust volume growth, improved operational efficiencies, and an increasing focus on premium and trade channel sales, which typically com