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The profit margins of cement companies will to peak out in the fourth quarter of the current fiscal, as cost pressures are expected to mount in the first half of fiscal 2026, according to a research note from Elara Securities.
The increase in costs for cement companies may come from reducing discount for pet coke (a raw material in cement production) and a depreciating rupee. This cost inflation is however transitory, the report said. Cement sector saw a recovery in third quarter of the current fiscal following pent-up demand, low base and a pick-up in construction activity, according to a brokerage report by Motilal Oswal Financial Services.
The increase in profitability of cement sector is not likely without a hike in prices in fiscal 2026, say experts.
Published – March 13, 2025 08:33 pm IST
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Cement industry margins to peak out in Q4FY25 on looming cost pressures
