Cement Q2 Results Preview: Higher Prices To Boost Margins Projects Axis Securities; UltraTech Among Top Picks

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Axis Securities Report

We remain positive on the dynamics of the cement industry based on the following factors:

• With large capex planned by FY27-28 and 100+ million tonnes per annum of new grinding capacity, India’s cement industry is set for a major expansion, boosting capacity and supply chain efficiency.

• With demand projected to rise 6–8% CAGR over the next two years, fueled by infrastructure, housing, and commercial real estate, strong government spending through FY26–FY27 will further support volume growth.

• Industry consolidation, cost efficiencies, and operational improvements are set to boost margins over the medium term, even with seasonal fluctuations.

• Lower GST, increased infrastructure spending, and a revival in realty and rural housing create a favourable backdrop for long-term profits.

The Indian cement sector in FY26–FY27 will benefit from sustained infrastructure spending, healthy rural demand, lower tax rates, and a bullish capacity addition pipeline. Despite seasonal dips, the medium-term view points to stable pricing, resilient earnings, and robust investment opportunities for investors aligned with India’s growth vision.

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