Cement sector faces muted Q1 FY27 as heat, water scarcity hit demand: Ashika's Jyoti Gupta

Cement sector faces muted Q1 FY27 with industry volume growth projected at just 4-5%, a sharp slowdown from 7-8% in the year-ago quarter, as extreme heat and water scarcity disrupted construction activity. Industry-wide EBITDA per tonne is expected to decline 25-30% year-on-year sequentially from about 900 in Q4 FY26, with realisations also falling 3-4% in the quarter. Despite near-term headwinds, sector leadership remains concentrated among large-caps UltraTech, Ambuja, Shree Cement, and JK Cement, with a recovery expected post festive season and full-year volume growth projected at 8-8.5%.