Cement Firms Expect H2 Boost After Q2 Growth

After​‍​‌‍​‍‌​‍​‌‍​‍‌ a strong performance in Q2, which was mainly influenced by a sales volume growth of more than 8% and a rise in sales realisations, cement companies are quite hopeful about the second half of FY26.

In the July-September quarter, a host of top-tier firms such as UltraTech, Ambuja Cement, Shree Cement, Dalmia Bharat, and Nuvoco Vistas reported their revenues to surge by as much as 21%, on the back of premiumisation, stable input costs and declining coal prices.

Key Highlights

• Top cement makers report strong Q2 growth, with revenues up to 21% YoY.
• Housing sector and infrastructure projects expected to drive H2 demand.
• Industry-wide cement volumes projected to grow 6–7% YoY in FY26.

Consolidated sales volumes of UltraTech increased by 6.9% to 33.85 million tonnes. As per the report, rural housing has become the main driver of growth. Managing Director Kailash C Jhanwar explained that good monsoon, changes in MSP and recent reforms in GST will create demand not only in rural areas but also in the cities.

Under the leadership of CEO Vinod Bahety, Ambuja Cement recorded a Q2 sales volume of 16.6 million tonnes, which was the highest-ever for the quarter and represented a 20% YoY increase. Revenue stood at Rs. 9,174 crore. Bahety mentioned that the sector is still is in a bullish mode, which is supported by the positive economic sentiment and escalated public and private investments.

Shree Cement’s MD Neeraj Akhoury has shared that their sales volume increased by 6.8% along with an increase in the company’s revenue by 17.4%. While Dalmia Bharat’s Puneet Dalmia has projected the H2 momentum to get strengthened owing to the factors like pent-up demand and consecutive good monsoons.

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Nuvoco Vistas’ MD Jayakumar Krishnaswamy talked about the very small portion of planned central and state capex that has been utilized and hence a huge potential for cement demand is left for H2.

According to ICRA, cement volumes are expected to rise by 6–7% year on year to 480–485 million tonnes in FY26. The increase will be mainly driven by the continuation of housing and infrastructure activities, thus pointing to a positive sectoral outlook in the second half of the fiscal ​‍​‌‍​‍‌​‍​‌‍​‍‌year.