KEY FACTORS ON WHY THE CEMENT SECTOR OUTPERFORMED IN THE JUNE QUARTER

The June quarter earnings season was lacklustre for many sectors, including Banking and financials and IT, however the cement sector was one of the few bright spots with major companies like

, , , reporting double-digit growth. Major cement companies posted strong quarterly earnings and have also outperformed the broader markets in terms of return, supported by volume growth and pricing improvement. Strong demand momentum and price hikes by companies has also acted as a positive factor for these stocks. Cement prices in India increased sharply due to higher demand driven by more infrastructure spending. Moreover, cement companies were able to sustain these price hikes due to recent mergers and acquisitions by major players. For instance, UltraTech Cement acquired India Cements, while Adani Group took over Penna Cement and Orient Cement. However going forth, the cement sector FY26 profitability will also depend on factors like stable raw material prices, especially for fuel prices. In recent weeks, fuel prices have seen high volatility amid geopolitical uncertainties and the US announcing 50% trade tariffs on India over the import of Russian oil.