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Informist, Friday, Apr. 24, 2026

MUMBAI – Analysts expect the margins of cement stocks to be under pressure in the coming days despite the recent price hikes. They also see the seasonal slowdown in the September quarter posing downside risks for these stocks. UltraTech Cement will be in focus as the company will detail its March quarter earnings Monday.

Cost structures remain high because of elevated petroleum coke prices, fuelled by a combination of global supply chain disruptions and scheduled domestic refinery maintenance, according to a report on the cement sector by Elara Capital. Post-peak demand trajectory is also seen as a downside risk for the companies, the brokerage said. The assembly elections currently on in some states, labour shortages because of the summer wedding season and liquefied petroleum gas constraints, heatwaves across most parts of the country, and increased inflation in other construction materials will be potential reasons for muted demand across the sector.

However, brokerage Emkay Global Financial Services sees demand momentum in the sector remaining upbeat. "Cement stocks have recovered some lost ground on the back of the recent price hikes," the brokerage said in a report. "However, we believe cement spreads remain the key monitorable and determinant for mean reversion of valuation multiples."

A cumulative cost impact of INR 400 per tonne in the first two quarters of the financial year 2026-27 (Apr-Mar), extrapolating current input cost levels, is expected by the brokerage. The threat of diesel price hikes from May will result in cost inflation of INR 25–INR 40 per tonne, it said.

UltraTech Cement is expected to report a 12% year-on-year rise in net profit for the March quarter to INR 27.92 billion. The net sales of the cement manufacturer are likely to have risen nearly 13% to INR 260.13 billion. The revenue rise is expected to have been driven by higher volumes owing to more construction activity despite demand for cement weakening in March once the West Asia crisis began.

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Following are the resistance and support levels for key cement stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Arundathi A R

Edited by Rajeev Pai

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