Archive · 21 Aug 2025
Cement Sector's Strong Start Faces GST and Market Headwinds
The cement industry is doing well, starting strong in the current fiscal year with higher sales and profits.
However, changes like potential tax cuts (GST) and rising costs could affect this growth.
Experts expect that a GST cut could lower cement prices, but some are unsure if this will boost sales.
Overall, the industry faces a mix of positive trends and uncertainties.
Cement sector shows strong FY26 start with increased volumes and profits.
GST restructuring, rising capex, and price moderation pose potential challenges.
Axis Securities reports significant profit and revenue growth in Q1FY26.
Proposed GST cut could shift cement to an 18% bracket, potentially lowering prices.
Brokerages differ on the impact of GST cuts on cement demand.
- Who
- Cement companies, brokerage firms, and government.
- What
- Cement sector performance and the impact of proposed GST changes.
- When
- Q1FY26, with expectations for FY26.
- Where
- India
- Why
- To assess the sector's growth potential amid various economic factors.
Positive Impact of GST Cut
Limited Impact of GST Cut
Effect of GST Cut on Demand
Positive Impact of GST Cut
Motilal Oswal: GST cut will lower cement prices by 7-8%.
Limited Impact of GST Cut
Kotak: GST cut may not significantly affect cement demand.
- EBITDA per tonne
- Rs 1,070
- Cement price increase (July 2025)
- Softening
- Expected GST rate
- 18%
- CAGR between FY24-FY27
- 7–8 per cent
Sources
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