Archive · 24 Sep 2025
India's Cement Sector Poised for Steady Q2 Earnings
Imagine the Indian cement industry is like a group of builders.
Experts predict they'll do pretty well this quarter, even if they don't sell as much as expected.
The builders had to raise their prices a bit, but it's not a big change.
They're also adding more capacity to build even more things.
Although prices are somewhat sustainable, there are some concerns about costs.
Overall, the builders should be doing well, according to the report.
Indian cement sector is expected to show resilience in the upcoming earnings season.
Goldman Sachs forecasts a 4% year-on-year volume growth in Q2FY26.
The GST cut could shift demand to the end of September.
Petcoke prices and weakening rupee create additional cost pressures.
India's three largest cement companies are set to add approximately 41 million tonnes of capacity this fiscal year.
- Who
- Goldman Sachs and ICRA
- What
- Reported on the Indian cement sector
- When
- Upcoming earnings season (Q2 FY26)
- Where
- India
- Why
- To analyze market trends and predict performance
Business Optimism
Potential Headwinds
Margin Pressure
Business Optimism
Price sustainability and limited margin pressure is expected.
Potential Headwinds
Petcoke prices have spiked, and the weakening rupee creates additional pressure on the costs
- Forecasted Volume Growth
- 4% year-on-year
- Capacity Additions (FY26)
- 45-50 million tonnes
- Capacity Additions by Top 3
- 41 million tonnes
- Price Increase Correction
- Rs 5-10 per bag
- Impact of GST Reduction
- Boost to operating profit by Rs 100-150 per MT