UltraTech, Ambuja, ACC, Dalmia others: Pricing Key to Profitability for Cement manufacturers in FY26 says India Ratings

Stock Market Today: For UltraTech Cement, Ambuja Cements, ACC, Dalmia Bharat and other cement manufacturers, India Ratings and Research says that during FY26 Growth likely to Improve but Pricing holds Key to Profitability.

India Ratings and Research says that for Cement Sector demand growth is likely to be in mid single digits a. Though it expects growth to continue but adds that Pricing will be key to profitability.

Mid-single-digit Demand Growth likely in FY26

India Ratings and Research expects the cement demand to register mid-single-digit growth in FY26. The same is likely to be helped by recovery in infrastructure demand that had remained weaker during the ongoing financial year FY25 largely impacted by the general elections. Monsoon also had been strong and thee expected improvement to be observed in the rural demand. Demand fundamentals will improve with an improving real wage growth for the lower income strata, said India Ratings. Also continued growth in urban housing even though at a moderate pace due to base effect, however will be helpful.

India Ratings and Research maintains overall FY26 outlook stable

India Ratings and Research has given small (tier 2) businesses a deteriorating outlook while maintaining a neutral outlook for the cement industry as a whole for FY26.

Despite a challenging pricing environment brought on by greater competition and a sizable capital expenditure pipeline, the sector would be well-served by range-bound input costs, stable balance sheets, and anticipated demand growth, according to India Ratings and Research , who thereby the overall Outlook to remain Neutral

Consequently, India Ratings and Research has kept its rated cement portfolio’s rating outlook stable for FY26.

Pricing Environment to remain Weak as Companies Focus on Volumes: After witnessing the sharpest year on year price fall in almost two decades, India Ratings and Research expects a continued weak pricing environment in FY26 as companies focus on increasing their volumes amid the influx of decadal-high capacities. However, the prices are likely to show more stability compared to the sharp fall in FY25, said India Ratings and Research. The realisations were down around 7% year on yer in 11MFY25 due to continued capacity additions amid the weak demand.

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