New Delhi, 24 September (IANS). India’s cement sector can get a strong performance in the upcoming earning season due to the price sustainability and low pressure on the margin, despite the weak volume. This information was given in a report on Wednesday.
American broking house Goldman Sachs said in its report that in July and August, Price Sustainability has recorded stable operational figures for Indian cement companies despite a low volume than expected in the seasonal weak quarter.
The broking house has given ‘bye’ or ‘neutral’ rating to India’s major cement companies.
Goldman Sachs expects a growth of about 4 percent on a annual basis in the cement industry volume in the second quarter of FY 2026. The firm said that improvement in GST may increase demand in late September.
The report said the weak start of September, but in the last week of the month, the activity has been expected to increase with increasing demand due to GST reform.
The firm said that the cost is generally stable, but recently the Petcock Price has increased and the weakness of the rupee has increased.
India’s three largest cement companies are going to add about 41 million tonnes of capacity. Therefore, an increase in capacity is important in this financial year.
The brokerage firm estimated that the industry would add about 45–50 million tonnes of capacity to FY 26.
The broking house said that many projects are still under construction, construction work of most of the projects with 45-50 million tonnes scheme has started and companies can only avoid some expansion plans in response to the decline in demand.
Goldman Sachs said that the price hike in the first quarter has only improved in the second quarter, compared to the level of June 2025 per bag of Rs 5-10 or about Rs 120 per ton.
Credit rating agency ICRA had earlier stated that the Goods and Service Tax (GST) cuts will increase the operating profit of cement companies per metric tonnes per metric tonnes.
-IANS
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