Fuel, input costs hit cement firms' margins despite healthy volume growth

Leading cement manufacturers have reported a divergent set of earnings in the June quarter of FY27, as capacity additions, market share gains and improved demand across key regions helped healthy volume growth, while elevated fuel and raw material costs weighed on profitability for several players. Listed cement makers have reported sales volume growth of up to 27 per cent, except second-largest maker Ambuja Cement, which reported a 14 per cent decline. Most of the companies reported double-digit sales growth, while profits came under pressure due to rising energy costs, subdued realisations and the lingering impact of geopolitical disruptions in West Asia. Moreover, cement makers reported a rise in premium portfolio, and improved their trade mix to enhance realisations, protect margins and offset rising fuel, freight and raw material costs. Besides, they are also optimistic about FY27, with 7-8 per cent volume growth. Leading cement maker UltraTech Cement and fifth-largest player