Jefferies Forecasts Cement Turnaround in FY26 on South Price Rise
Cement

Jefferies Forecasts Cement Turnaround in FY26 on South Price Rise

Global brokerage Jefferies has forecasted a turnaround in the profitability of the Indian cement sector in FY26, driven by a pricing recovery in the southern region starting from the first quarter. The firm identified Ultratech Cement, Shree Cement, and JK Cement as its preferred picks due to their strong earnings recovery momentum.

Jefferies reported that the cement sector showed a robust rebound in the March quarter (Q4 FY25), with EBITDA rising by 11 percent year-on-year and 67 percent sequentially. This improvement was mainly attributed to firming prices and steady volume growth. Earlier, Jefferies had included Ambuja Cements in its model portfolio, anticipating margin improvements amid decreasing competitive intensity in the industry.

Adding to the positive outlook, Systematix Research projected a demand growth of 6 to 7.5 percent for the cement industry in FY26. The research highlighted that consolidation-driven discipline, alongside strong infrastructure and housing demand, is guiding the sector towards a more stable and profit-friendly cycle.

Further validation came from Nomura's on-the-ground checks. The brokerage's dealer channel checks indicated notable price increases in the Indian cement market in June 2025, especially in South India, which significantly contributed to raising the national average.

By early June, the pan-India average cement price had increased by Rs 2 per bag to Rs 358, primarily due to a Rs 19 per bag rise in South India. Tamil Nadu and Kerala were the main contributors to this surge since mid-May. Conversely, minor price declines were observed in other regions, with decreases of Rs 3 per bag in Central India, Rs 5 in the West, and Rs 2 in parts of the South outside the major spike areas.

Global brokerage Jefferies has forecasted a turnaround in the profitability of the Indian cement sector in FY26, driven by a pricing recovery in the southern region starting from the first quarter. The firm identified Ultratech Cement, Shree Cement, and JK Cement as its preferred picks due to their strong earnings recovery momentum.Jefferies reported that the cement sector showed a robust rebound in the March quarter (Q4 FY25), with EBITDA rising by 11 percent year-on-year and 67 percent sequentially. This improvement was mainly attributed to firming prices and steady volume growth. Earlier, Jefferies had included Ambuja Cements in its model portfolio, anticipating margin improvements amid decreasing competitive intensity in the industry.Adding to the positive outlook, Systematix Research projected a demand growth of 6 to 7.5 percent for the cement industry in FY26. The research highlighted that consolidation-driven discipline, alongside strong infrastructure and housing demand, is guiding the sector towards a more stable and profit-friendly cycle.Further validation came from Nomura's on-the-ground checks. The brokerage's dealer channel checks indicated notable price increases in the Indian cement market in June 2025, especially in South India, which significantly contributed to raising the national average.By early June, the pan-India average cement price had increased by Rs 2 per bag to Rs 358, primarily due to a Rs 19 per bag rise in South India. Tamil Nadu and Kerala were the main contributors to this surge since mid-May. Conversely, minor price declines were observed in other regions, with decreases of Rs 3 per bag in Central India, Rs 5 in the West, and Rs 2 in parts of the South outside the major spike areas.

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?