Silver of cement companies due to government expenses on infrastructural projects, revenue increased in June quarter

Cement companies earnings: Due to the government’s increasing spending on important infrastructure projects, the first quarter of the current financial year recorded an increase of more than 10 percent in sales of major cement companies. During this time, the income of companies also increased. Cement manufacturers hope that this trend will continue throughout the financial year. Low production costs-As a decline in coal and petcock prices and stable diesel price-has helped to improve the tax-pre-income (EBITDA) of companies. This relief came at a time when cement companies had to face a difficult period in 2024-25.

Government increased infrastructure projects

UltraTech cement sales rose 9.7 percent to 3.68 million tonnes in the June quarter, contributing to India Cements and Kesoram Industries. Ambuja Cements of Adani Group also recorded its highest number of cement sales so far and a quarterly revenue of Rs 10,000 crore. Birla Corporation sales increased by 9.36 percent to 47.9 lakh tonnes, Nuvoko Wistas Corp sales 51 lakh tonnes, and sales quantity of JK Lakshmi cement increased by about 10 percent.

However, some companies faced a decline. The sale of Shri Cement was affected due to geopolitical tension in the northern region. Dalmia India’s sales quantity declined by 5.8 percent to 74 million tonnes. At the same time, due to premature monsoon in Kerala, the sales of Ramco Cements fell by 7 percent.

What do companies have to say?

Companies commented on their results and hoped for better performance. Ambuja Cement CEO Vinod Bhetti said that this increase is based on factors like focus on price, strong sales quantity, improvement in prices and channel engagement. At the same time, Atul Daga, CFO of UltraTech, said that the government capital expenditure program has shown significant improvements in the first two months of the quarter on a low of April-May, 2024. He said that the performance of states like Bihar, Andhra Pradesh, Gujarat and Maharashtra has been better on an annual basis.

The increase in cement prices has also supported the industry. In June 2025, the price of All India average cement increased by 7 percent to Rs 355 per 50 kg bag on an annual basis. According to a report by Ikra, the price increased to Rs 360 per bag due to strong demand in the first quarter of FY 2025-26 and the price hike by companies. Whereas in FY 2024-25 average prices had come down by 7 percent to Rs 340 per bag.