Profitability of Indian cement manufacturers likely to come under pressure in Q1FY27: India Ratings and Research
India Ratings and Research (Ind-Ra) in its latest report has said that the profitability of Indian cement manufacturers is expected to face pressure in the first quarter of current financial year (Q1FY27) due to a sharp increase in fuel, freight and other input costs, besides product price hikes by industry players. The report stated that operating costs and key raw materials, including pet coke, coal, diesel and packing materials, increased during the quarter, adversely impacting the sector's margins.
However, it said with the softening in the prices of crude and pet coke in the past month, the industry could see some respite in production cost over the next couple of quarters. Besides, it stated that cement demand is expected to grow at a mid-single-digit rate year-on-year in Q1 of FY27, after growing 8 per cent in FY26. Listed cement companies reported around 6 per cent year-on-year volume growth in the January-March quarter of FY26.
It noted that cement demand began FY27 on a strong footing, with production volumes increasing 9 per cent year-on-year in April, up from 6 per cent growth recorded in April 2025. However, demand growth may have moderated during May and June due to adverse weather conditions, including heatwaves and rains in various parts of the country, along with higher inflationary pressures.
