India’s cement industry has powered through the September quarter with a solid performance, as predicted by analysts and rating agencies. Most companies reported strong numbers for Q2 FY26, buoyed by steady demand, cost moderation, and policy tailwinds, including the long-awaited cut in GST.
The GST Council’s decision on September 3, 2025, to reduce the tax on cement from 28% to 18% has proven to be a game changer for the sector. Rating agency ICRA had earlier estimated that the tax cut would lower construction costs in rural housing by up to 1%, helping to push volumes higher and boost profitability.
ICRA also projected a 3–5% increase in average cement realisation (ex-factory price excluding GST) in FY26, with input prices expected to remain stable. The result, it said, would be a rise in operating profit by Rs. 100 - Rs.150 per metric tonne (MT), and an improvement in operating profit before interest, depreciation, taxes, and amortisation (OPBIDTA) to Rs. 900 - Rs. 950 per MT - a 12–18% jump year-on-year.
The Q2 results have validated that outlook. Despite extended monsoons, channel adjustments due to GST changes, and early festive season disruptions, most leading cement firms reported a significant rise in revenue and profitability. Executives across the board pointed to supportive reforms — including the GST 2.0 rollout, the Carbon Credit Trading Scheme (CCTS), and the removal of the coal cess — as key factors driving future growth.
UltraTech Cement: Industry Leader Builds on Acquisitions
UltraTech Cement, India’s largest producer and part of the Aditya Birla Group, reported a consolidated net profit of Rs. 1,237.98 crore for Q2 FY26, up from Rs. 707.96 crore in the same quarter last year. Revenue from operations grew to Rs. 19,606.93 crore, compared to Rs. 16,294.42 crore a year earlier.
The company attributed part of this surge to recent acquisitions, including South-based India Cements, Wonder WallCare, and UAE-based RAKWCT, as well as the merger of Kesoram Industries’ cement business earlier this year.
UltraTech’s consolidated sales volume rose 6.9% to 33.85 million tonnes, with domestic grey cement growing 22.3% year-on-year (excluding newly acquired entities). “The company has delivered remarkable growth during this quarter, outpacing the industry average of around 5%,” the firm said in its earnings release.
In the first half of FY26, UltraTech’s total income stood at Rs. 41,238.75 crore. The company also confirmed it passed on the full benefit of the GST reduction to customers, reflecting the positive flow-through effect of the tax cut.
ACC Ltd: Profit Surges Over Fivefold
ACC Ltd, part of the Adani Group, delivered one of the standout performances this quarter. Its consolidated profit after tax rose more than fivefold to Rs. 1,119.26 crore in Q2 FY26, compared to Rs. 199.7 crore a year ago.
Revenue from operations climbed to Rs. 5,896.16 crore from Rs. 4,542.23 crore, supported by strong performance across both cement and ready-mix concrete segments. The cement and ancillary services business contributed Rs. 5,519.18 crore in revenue, while ready-mix concrete added Rs. 453.62 crore, both registering solid growth year-on-year.
Ambuja Cements: Capacity Expansion and Profit Boost
Another Adani Group company, Ambuja Cements, also posted a stellar quarter. Its profit after tax jumped more than fourfold to Rs. 2,302 crore in Q2 FY26, compared to Rs. 496 crore in the year-ago period. The figure included a one-time income tax provision reversal of Rs. 1,697 crore.
Revenue from operations rose to Rs. 9,174 crore from Rs. 7,552 crore last year. “This quarter has been noteworthy for the cement industry,” said Vinod Bahety, Whole Time Director and CEO, Ambuja Cements. “Despite prolonged monsoons, the sector will benefit from favourable reforms including GST 2.0, the Carbon Credit Trading Scheme, and withdrawal of the coal cess.”
Bahety said the company had revised its FY28 capacity target upward to 155 MTPA from 140 MTPA earlier, adding 15 MTPA through debottlenecking and at a significantly lower capex of USD 48 per tonne. The CEO expects double-digit revenue growth for the rest of FY26, supported by cost efficiencies and price discipline.
Shree Cement: Volume Growth and Premiumisation Drive Profit
Shree Cement, the country’s third-largest player, reported a net profit of Rs. 309.82 crore for the September quarter, a fourfold jump from ?76.64 crore last year. Revenue rose 17.4% to Rs. 4,761.07 crore from Rs. 4,054.17 crore, driven by volume growth and premium product sales.
The company said its “value over volume” strategy, focused on higher-margin products, helped boost earnings despite a volatile monsoon season.
Ramco Cements: Profit Triples, Capacity Expansion on Track
The Ramco Cements Ltd saw its consolidated net profit rise nearly three times to Rs. 77.88 crore in Q2 FY26, from Rs. 25.77 crore a year ago. Revenue from operations grew 9.5% to Rs. 2,238.74 crore.
While sales volumes remained flat due to weather-related slowdowns and GST adjustments, capacity utilisation stood at 71%, down slightly from 75% in the previous year. The company said it plans to expand its total cement capacity to 30 MTPA by March 2026 through a mix of new lines and debottlenecking projects.
HeidelbergCement India: Profit Doubles on Volume Gains
HeidelbergCement India reported a twofold increase in net profit to Rs. 24.93 crore in Q2 FY26, with revenue up nearly 11% to Rs. 511.66 crore. Sales volumes rose 9.2% to 1.07 million tonnes, supported by improved pricing and cost control.
“The company’s per-tonne EBITDA increased by 41% year-on-year, reflecting operational efficiency and price discipline,” the company said. Operating costs per tonne, including freight, fell by 2%, contributing to higher margins.
Nuvoco Vistas: Returns to Profit After a Year
Nuvoco Vistas, the cement and building materials arm of the Nirma Group, turned profitable in Q2 FY26 with a consolidated profit of Rs. 36.43 crore, compared to a loss of Rs. 85.17 crore a year ago. Revenue rose 8.3% to Rs. 2,457.57 crore, driven by steady demand and cost management.
The company said it expects to maintain this momentum in the coming quarters as infrastructure and housing projects pick up pace post-monsoon.
Outlook: A Firm Foundation for Growth
Analysts expect the sector’s strong showing to continue into the second half of FY26. Demand from affordable housing, rural infrastructure, and government-led construction projects is likely to sustain momentum. With the GST cut improving affordability and logistics reforms reducing costs, the industry seems poised for a stable, profitable growth phase.
As ICRA had projected, the combination of steady demand, restrained input costs, and policy support is expected to lift cement manufacturers’ margins further. For now, the September quarter has made one thing clear: the cement industry is laying a strong foundation for India’s next wave of construction growth.
