Price reset, demand pulse drove cement’s strong Q2

Low base, premium mix and new capacity supported gains

- PRACHI PISAL

India’s top cement producers delivered a solid July-September quarter (Q2) in 2025-26 (FY26), lifted by firmer prices, higher sales volumes, and a favourable base. Seasonal weakness and maintenance outages did dent sequential performance, but the overall picture remained positive — and the road ahead looks steady.

“Realisations improved by ₹250-300 per tonne yearon-year (Y-0-Y), driven mainly by better cement prices, which helped companies lift their earnings before interest, tax, depreciation, and amortisation (Ebitda) pertonne compared to last year,” said Vijay Agrawal, managing director and sector lead-infrastructure at Equirus Capital.

Average all-India cement prices hovered at ₹355-365 per bag in Q2FY26, up from ₹330-335 in Q2 of 2024-25 (FY25). Last year’s demand was hit by lower government capital expenditure (capex), the general election, and weather disruptions, observed Akshay Shetty, research analyst at Mirae Asset Sharekhan.