Preview: Street View: Indian cement firms face margin squeeze despite volume growth

Ultratech Cement

08/07/2026 06:56

** Indian cement firms expected to see high costs, margin pressures on Iran war impact, analysts say 
** Nifty Cement .NIFTYCEMENT index down 0.5% on-day
         
COSTS OUTPACE PRICING GAINS
** Phillip Capital sees cement industry volume growth at around 7%, projecting that realisations will improve by 3% to 4% QoQ
** Expects 4%-5% hike in operational expenses per tonne on war-related impact; EBITDA per tonne to decline 50-70 rupees
** Elara Capital says price hikes should offset fuel costs, keeping EBITDA/tonne broadly stable
** Peak fuel inflation to hit Q2 earnings during seasonal demand lull; South India-based firms such as Ramco Cements TRCE.NS face steeper declines - brokerage
** Jefferies says cos to post ~5% YoY decline in Q1 EBITDA as price hikes lag cost increases
** Nomura expects 6% to 7% organic Q1 volume growth sector-wide
** Says escalated fuel and packaging cost to more than offset any benefit of cement price improvement
     

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))