India: According to a report by Jefferies, India’s cement industry is witnessing demand growth, but rising input costs are putting pressure on profitability. The report highlighted that cement industry volumes grew by 9% year-on-year in the second quarter of the 2027 financial year, up to 30 September 2026. Higher operating costs weighed on margins, however, with earnings before interest, taxes, depreciation and amortisation (EBITDA) declining by US$1.3/t to around US$8.5/t.
Rising input costs were a major factor behind the margin pressure. Average cost per tonne increased 5-6% quarter-on-quarter, driven by higher variable expenses. The report noted that cement companies have indicated a further increase of US$1/t in variable costs during the current, third quarter of the 2027 financial year. “Cost inflation remains the major drag, with further pressure likely if fuel prices remain elevated,” Jefferies said.
