Nomura Sees Q1 Pressure On Cement Margins; Backs Major Players

13 Jul 2026 CW Team

Average trade prices improved three per cent sequentially to around Rs 326 per bag after price increases of about Rs 10 per bag, yet cost headwinds more than offset this benefit. Nomura estimated operating cost per tonne rose four per cent sequentially, and that earnings before interest, tax, depreciation and amortisation (EBITDA) per tonne (t) declined by an average of Rs 50 quarter-on-quarter across its coverage universe. Ambuja Cement was seen as an exception with a forecasted sequential improvement in EBITDA per t.

UltraTech Cement and Shree Cement were expected to report smaller margin declines than peers based in the South because pricing proved stronger in their key markets. The brokerage attributed part of the cost pressure to disruptions from the West Asia conflict as imported pet coke prices rose 12 per cent quarter-on-quarter and thermal coal prices increased 17 per cent. Diesel prices also moved higher during the quarter, contributing further to input cost inflation.

While imported fuel costs have eased slightly from their quarterly averages, Nomura warned that input costs remained above previous quarter levels and that sustaining margins would depend on the industry's ability to hold current price levels rather than on easing input costs. The brokerage maintained buy ratings on UltraTech Cement, Ambuja Cement, Dalmia Bharat, Nuvoco Vistas, Ramco Cements and Shree Cement, and retained a reduce rating on ACC. The assessment emphasised that regional pricing strength and cost management would determine relative outcomes in coming quarters.

Nomura said cement margins will be under pressure in the June quarter as fuel and packaging costs rose, although volume growth is expected to remain healthy. The brokerage forecast six to seven per cent year-on-year organic volume growth for the Indian cement industry in the period, with Shree Cement identified as likely to post the highest growth at 15 per cent year-on-year. It noted that the West and North regions outperformed on pricing, aiding companies with greater exposure in those markets. Average trade prices improved three per cent sequentially to around Rs 326 per bag after price increases of about Rs 10 per bag, yet cost headwinds more than offset this benefit. Nomura estimated operating cost per tonne rose four per cent sequentially, and that earnings before interest, tax, depreciation and amortisation (EBITDA) per tonne (t) declined by an average of Rs 50 quarter-on-quarter across its coverage universe. Ambuja Cement was seen as an exception with a forecasted sequential improvement in EBITDA per t. UltraTech Cement and Shree Cement were expected to report smaller margin declines than peers based in the South because pricing proved stronger in their key markets. The brokerage attributed part of the cost pressure to disruptions from the West Asia conflict as imported pet coke prices rose 12 per cent quarter-on-quarter and thermal coal prices increased 17 per cent. Diesel prices also moved higher during the quarter, contributing further to input cost inflation. While imported fuel costs have eased slightly from their quarterly averages, Nomura warned that input costs remained above previous quarter levels and that sustaining margins would depend on the industry's ability to hold current price levels rather than on easing input costs. The brokerage maintained buy ratings on UltraTech Cement, Ambuja Cement, Dalmia Bharat, Nuvoco Vistas, Ramco Cements and Shree Cement, and retained a reduce rating on ACC. The assessment emphasised that regional pricing strength and cost management would determine relative outcomes in coming quarters.

Infrastructure Transport

06 Aug 2026

Surya Roshni delivers customised lighting for NCRTC RRTS stations

Surya Roshni has supplied customised indoor lighting solutions for 18 elevated stations on the National Capital Region Transport Corporation's (NCRTC) Rapid Rail Transit System (RRTS), strengthening its presence in India's infrastructure lighting segment.The project involved the design and deployment of lighting systems for platforms, concourses, foot overbridges (FOBs) and back-of-house (BOH) areas. According to the company, the luminaires were developed specifically to meet NCRTC's design, operational and performance requirements rather than using standard products.Surya introduced two custo..

Real Estate

06 Aug 2026

Hilton debuts Tapestry Collection brand in Vietnam

Hilton has opened NHAAN Resort & Spa Hoi An, Tapestry Collection by Hilton, marking the debut of the Tapestry Collection brand in Vietnam and expanding its lifestyle hospitality portfolio in Southeast Asia.Located along the Co Co River in Cam Thanh village, the 174-key resort provides access to Hoi An Ancient Town, Cua Dai Beach and the Cam Thanh Nipa Forest. The property has been designed by Vietnamese architect Vo Trong Nghia, incorporating biophilic architecture, locally sourced materials and riverfront landscapes.The resort offers a mix of guest rooms and suites, including family-frien..

Building Material

06 Aug 2026

Electrent expands lithium energy storage system portfolio

Electrent Energy has expanded its lithium-based energy storage portfolio with the launch of the ESS 850 and ESS 1050, targeting compact and maintenance-free power backup solutions for Indian homes.The new systems integrate a Home UPS and a LiFePO4 lithium battery into a single unit, extending the company's product range following the launch of its ESS 1350 and ESS 2500 models.Designed for apartments and smaller homes, the ESS 850 provides up to 1 hour 15 minutes of backup, while the ESS 1050 offers up to 1 hour 45 minutes on a typical 400 W household load. The systems can power essential appli..