Indian cement profits to rise 250-300 basis points in 2025-26 due to higher demand and lower costs.

Indian cement manufacturers are projected to see profit margins rise 250-300 basis points in fiscal year 2025-26, driven by a 6.5-7.5% sales volume increase and stronger realisations, according to a Crisil report. Higher demand, improved liquidity, and a GST reduction from 28% to 18% may lower retail prices by 4-5% in the second half, but premiumisation and strong demand are expected to offset this. Realisations are forecast to grow 2.5-3.5% for the year, with stable overall costs due to lower power and freight expenses, despite elevated raw material costs. Operating margins are expected to expand to 18-20% from 16% in the prior fiscal, though geopolitical risks, regulatory changes, or natural disasters could disrupt energy costs and impact results.