India’s largest cement producers report mixed June-quarter results as strong shipment growth clashes with rising fuel, freight, and raw material costs amid geopolitical tensions, prompting varied strategic responses across the sector.
India’s largest cement makers delivered a mixed set of June-quarter results, with strong shipment growth offset by pressure from fuel, freight and raw material costs. According to The Hindu BusinessLine, demand held up across infrastructure, housing and construction, but margins were squeezed for several groups as imported fuel prices stayed elevated and geopolitical tensions in West Asia disrupted costs and supply chains.
UltraTech Cement was among the clearer winners. Moneycontrol reported that the Aditya Birla group company lifted consolidated net profit by about 17% to ₹2,604 crore, as revenue rose and domestic sales volumes climbed 13.1%. The company credited stronger execution, operating efficiencies and the integration of acquired assets. A separate report from Reuters’ coverage via the market wires said the company also benefited from higher capacity utilisation and disciplined cost control.
Ambuja Cements took a different path, prioritising profitability over volume. The Hindu BusinessLine said the company’s sales volume fell 14% as it reduced exposure to lower-margin business, exited some weak regions in the south and east, and delayed the ramp-up of newly acquired assets. LiveMint reported that net profit dropped by roughly a third to ₹577 crore, with the company pointing to lower dispatches, temporary plant shutdowns and cost pressures from fuel and freight. Chief executive Vinod Bahety said on the earnings call that the quarter reflected stable demand, but a difficult cost backdrop.
Other large producers also saw earnings come under strain even when revenue improved. The Hindu BusinessLine said Shree Cement’s profit fell 17.5% despite 17% volume growth, while Dalmia Bharat’s net profit declined more than half, largely because of exceptional items. JK Lakshmi Cement and Birla Corporation also posted lower profits, with Birla Corporation citing subdued prices and higher fuel costs, according to LiveMint. Nuvoco Vistas was a notable exception, lifting profit by nearly 20% as revenue rose and volumes increased, while JSW Cement reported higher revenue but weaker operating earnings because of fuel, packing and marketing costs. Even so, several executives remain upbeat, with Nuvoco’s finance chief saying demand could rise 7% to 8% over the next three quarters and the broader industry looking ahead to similar growth in FY27.
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