Cement sector to see tepid Q2FY26 volumes, price gains offer relief: Nuvama

New Delhi [India]August 15 (Memorial): India’s cement sector is expected to witness volume growth in the second quarter of the 2026 financial year due to seasonal weakness, but the improvement of realizations offers silver primer.

In the report, it can put margins under pressure while operating and operating higher costs, adding that the ongoing cost efficiency measures of industrial players’ softening fuel prices and industry players will cushion.

“We believe that Q2FY26 will witness the growth of the suppressed volume growth due to a seasonally weak quarter.

The cement industry showed signs of healing in the first quarter of 26 financial years and 15 large companies reported about 7 percent growth in sales volumes compared to last year (but volumes fell by 11 percent compared to the previous quarter). This growth was mainly directed by increasing the expenditures of the government’s infrastructure.

Ambuja Cement (including recent acquisitions) and JK cement, the package of more than 14 % annually directed the volume growth.

Prices also healed in the southern and eastern regions and although it was slightly lower than the same period last year, the average sales price increased by about 5 percent compared to the previous quarter. In the meantime, raw material costs, mainly due to better inventory management, a quarter of a quarter and 15 % annually fell.

As a result, the profit per ton of the industry (EBITDA/T) increased by 10 percent quarter and 26 % annually. La1.140 per ton.

When we look forward, the report is usually a slow period for construction of the monsoon season (Q2FY26), so sales may fall.

The report also added that falling fuel costs are expected to help protect profitability.

In August in August of the current year, cement prices remained constant compared to the previous month, but more powerful on an annual basis.

The monsoon season has slowed down construction activities, especially in rural areas and infrastructure projects, which limited a weak attraction and the ability of companies to raise or maintain prices.

For the region, the demand in the eastern market fell sharply due to early rains, but the prices remained constant LaPrices increased in 353. southern region per bag LaDespite the monsoon, 10th per bag (memory)