Cement firms may report improved Q2

Top Indian cement firms are expected to report a strong earnings growth for the second quarter of the financial year 2025-26 (Q2FY26) on a year-on-year (Yo-Y) basis, amid improved realisations, prices, and steady volume growth, but on a low base.

- PRACHI PISAL

On a Yo-Y basis, earnings before interest, taxes, depreciation, and amortisation (Ebitda) per tonne are expected to record a sharp increase of 40-70 per cent, due to improved volumes and pricing — which grew by about 5 per cent Yo-Y to%350-%365 per bag, eventually resulting in better realisations (up 3-5 per cent), according to brokerage reports.

However, on a quarterly basis, the earnings are estimated to witness a decline due to weak demand, higher spending on repair and maintenance, negative operating leverage and negative impact on realisations (down 2 per cent) from soft cement prices (down 2 percent), according to the analysts at Elara Capital.