Cement Stocks: Dalmia Bharat, Ambuja Gain Amid Cement Volume Growth Optimism

Dalmia Bharat and Ambuja Cements shares are trading higher today, with Dalmia Bharat up 0.96% at ₹1,830.95 and Ambuja Cements rising 0.46% at ₹545.30 at 10:40 AM on the NSE, reflecting positive market sentiment. This marks the sixth consecutive session of gains for Ambuja Cements, while Dalmia Bharat is up for the fourth straight session.

Cement Industry Poised for Growth in FY26 with Rising Demand

As per news reports, cement manufacturers are poised for growth in FY26, driven by rising demand, pricing recovery, and cost reductions that are expected to boost margins.

Industry reports indicate that cement volumes are projected to grow at a 7-8% CAGR, supported by increasing housing demand, infrastructure development, and ongoing sector consolidation.

Market concerns such as weak demand, pricing pressures, and competition from major players have already been factored in, paving the way for a recovery.

As per news reports, a combination of factors—including a housing sector upcycle, higher government capital expenditure, and consolidation led by key industry players like UltraTech and Ambuja—is expected to drive stronger earnings for cement manufacturers.

Cement Volume Growth Slows in H1FY25 Amid Weather Disruptions

Cement sales volume growth decelerated to 2% in the first half of FY25, following a robust 10% CAGR between FY22 and FY24. This slowdown was primarily due to the impact of adverse weather conditions, such as early-year heatwaves and heavy monsoon rains, which hampered construction activities.

Conclusion

With demand expected to rebound, pricing pressures easing, and cost optimisations enhancing margins, the industry appears poised for a strong FY26. While near-term challenges such as weather disruptions impacted H1FY25, the broader outlook remains positive.

Investors will closely monitor sector developments, government infrastructure spending, and corporate consolidation efforts as key drivers of sustained growth in the cement industry.

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