The Indian cement industry is expected to report weaker-than-usual earnings for the quarter ending December 2025 due to various challenges. The recent Goods and Services Tax (GST) revision has led to a decline in cement prices, with a nationwide drop of approximately 3% compared to the previous quarter. The average price per 50 kg bag of cement in India stood at around ₹333, a decrease from ₹372 in the preceding quarter and ₹359 a year earlier. This price weakness is expected to impact revenue streams for major producers.
In addition to the price pressure, the industry is also facing weak demand from the non-trade segment, which is further exacerbating the situation. The demand from this segment has been sluggish, and it is expected to continue in the near future. Moreover, the cost of essential raw materials like pet coke has increased, which will further dent the earnings of cement producers.
As a result, the industry-wide average EBITDA (earnings before interest, tax, depreciation, and amortization) per tonne is projected to fall within the ₹750-1,050 range for the December quarter, which is significantly lower than the more than ₹1,000 per tonne achieved in the first half of 2025. This decline in profitability is expected to impact the earnings of cement companies, with some companies likely to be more affected than others.
Despite these challenges, some companies like Shree Cement Ltd. are expected to perform relatively better than others. The company’s strong brand presence and efficient operations are expected to help it navigate the current challenges and demonstrate a stronger performance within the sector. Overall, the Indian cement industry is facing a tough quarter, and companies will need to adapt to the changing market conditions to remain competitive. The decline in profitability is expected to be a significant challenge for the industry, and companies will need to focus on cost reduction and operational efficiency to mitigate the impact of the current headwinds.