Cement Sector

Ambuja Cements, a key player in the Indian cement industry under the Adani Group, is set to reach an annual cement production capacity of 118 million metric tonnes (MTPA) by the end of fiscal year 2026. The company, which has made several strategic acquisitions over the past two years, including Orient Cement and Penna Cement, has already crossed the 100 MTPA milestone. As part of its long-term growth strategy, Adani Group aims to achieve 140 MTPA capacity by 2028. This aggressive expansion is part of a broader effort to challenge UltraTech Cement, India's largest cement manufacturer.

Ambuja Cements Ltd, part of the Adani Group, has announced its consolidated net profit for the fourth quarter of FY2025 at Rs 1,282.24 crore, a decrease from Rs 1,521.21 crore in the same period last year. Despite this, the company saw a 12% rise in its revenue from operations, totaling Rs 9,802.47 crore. The results, however, are not directly comparable to previous quarters due to the inclusion of financials from recent acquisitions, including Sanghi Industries, Penna Industries, and MY Home Industries. Ambuja’s stock price fell by 1.84% following the announcement.

UltraTech Cement Ltd has reported a solid financial performance for the fourth quarter of fiscal year 2025, with a consolidated net profit of Rs 2,474.79 crore, reflecting a growth from the previous year. Despite a decrease in net profit for the full fiscal year, the company continues to lead the market with aggressive expansion plans, including a substantial increase in cement production capacity. The company also expects sustainable volume growth due to the government's focus on infrastructure development.

India Cements Ltd, now operating under the Aditya Birla Group umbrella, reported a net profit of Rs. 14.68 crore for the quarter ending March 2025, marking a notable recovery from a loss of Rs. 60.55 crore in the same period last year. Despite a dip in operational revenue and total income, the company narrowed its annual losses significantly. The strategic acquisition by UltraTech Cement in late 2024 has catalyzed a broader restructuring plan, including the amalgamation of four subsidiaries.

Despite a noticeable year-over-year decline in net profit for Q4 FY25, ACC Ltd, a leading player in India's cement industry and a key component of the Adani Cement portfolio, reported its highest-ever quarterly revenue—signaling underlying business strength. The company’s operational momentum, backed by record-breaking sales volumes and strategic capacity expansions, has offset near-term profitability pressures.

ACC Ltd, a key player in the Indian cement industry, reported a 20.4% year-on-year decline in net profit for the March quarter, falling to Rs 751.04 crore. Despite this, the company's revenue from operations grew by 12.7% to Rs 5,207.3 crore. The cement maker, now part of Adani Cement, achieved a record-high sales volume of 11.9 million tonnes, reflecting strong demand in the housing and infrastructure sectors. For the full fiscal year, ACC posted a modest profit increase of 2.87%.

India's cement industry is poised for a modest rebound in FY26, buoyed by a 2–4% increase in prices and a projected demand growth of 6.5–7.5%, according to a recent analysis by Crisil. The sector, which faced a tepid performance in FY25 due to election-related disruptions and a subdued construction cycle, is now expected to benefit from heightened government capital expenditure on infrastructure and a favourable monsoon forecast.

Indian equities have been on a remarkable upswing, with investors gaining Rs. 36.65 lakh crore in just seven days of trading. The BSE benchmark Sensex rose by over 8%, reflecting a steady recovery amid positive global cues and investor optimism. Tech stocks, particularly HCL Tech, led the rally, while banking and cement stocks saw profit-taking. The market's surge was fueled by favorable global factors, including US political developments and trade optimism.

JK Lakshmi Cement Ltd (JKLC), a key player in India’s cement industry and part of the storied JK Organisation, is steering an ambitious growth trajectory in FY25. With plans to expand its production capacity from 18 to over 30 million tonnes per annum (MTPA) by 2030, the company is setting its sights on becoming one of the top five cement producers in the country.

UltraTech Cement, India's largest cement manufacturer and a subsidiary of the Aditya Birla Group, has announced its acquisition of a 26% stake in AMPIN C&I Power Eight, a renewable energy generation and transmission firm. The Rs 25.50 crore investment will support UltraTech’s green energy needs, enabling the company to optimize energy costs and comply with regulatory requirements. This strategic move aligns with UltraTech's sustainability goals, as it seeks to harness renewable energy through its partnership with AMPIN, which is developing a 75 MW solar power project in Rajasthan.