India's cement firms face earnings risk as US-Iran war lifts costs, Jefferies says

Ultratech Cement

15/04/2026 09:09

** Higher energy prices linked to Middle East war pose earnings risk for Indian cement makers, as cost shocks are historically difficult to pass through, brokerage Jefferies says

** Estimates cost inflation of about 300 rupees ($3.21) per ton over Q4FY26 and Q2FY27, driving 4-9% EBITDA cuts for FY27-28

** Adds, Ambuja Cement ABUJ.NS faces sharpest cuts amid slower cost turnaround

** Cement stocks up on the day on broader market optimism around US-Iran talks; Nifty 50 .NSEI up 1.5%

** UltraTech Cement ULTC.NS, ABUJ, Shree Cement SHCM.NS rise between 2.5% and 3.1%, JK Lakshmi Cement JKLC.NS up 0.3%

** YTD, ULTC up 0.2%; AMBUJ, SHCM and JKLC decline 18.2%, 5.9% and 17%, respectively

($1 = 93.3750 Indian rupees)

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))