ewsba.se
Cement makers are raising prices to protect margins from persistent input cost inflation. In October, average cement prices across India rose by ₹14 per bag month-on-month and by ₹21 per bag over the September quarter (Q2FY27) average exit level, according to dealer channel checks by Nirmal Bang Institutional Equities. One cement bag weighs 50 kg.
The East stood out, recording the sharpest increase. Prices in the region rose by ₹47 per bag over the Q2FY27 average exit level and by ₹89 per bag month-on-month. Among key cities, trade-segment prices in Kolkata, Bhubaneswar and Patna increased by ₹20-70 per bag. In the trade segment, cement is sold through a network of local dealers, hardware stores and retailers.
More price hikes are expected in November, but sustaining them will be crucial as demand remains subdued, weighing on volumes. Month-on-month average cement sales volumes in the East were flat to slightly negative, declining by 2% in October, the Nirmal Bang report said.
Water shortages, labour availability constraints during the festive season and pollution-related construction restrictions could prevent the full absorption of price hikes. Demand momentum in the region is expected to pick up after Diwali and Chhath Puja in mid-November.
Birla Corporation, Dalmia Bharat, Shree Cement, Nuvoco Vistas Corp and UltraTech Cement have exposure to the region. The latest management commentaries indicate that demand is expected to improve in the seasonally strong second half of FY27. However, the cost headwind has not eased, keeping variable costs volatile.
Unless the West Asia war resolves, input cost pressures could intensify in H2FY27 as fuel becomes more expensive. International and domestic petroleum coke costs rose 15% and 12% month-on-month, respectively, in October, surpassing their previous peak levels recorded in April and September this year.
If recent price hikes sustain then realizations could improve, but profitability trends remain key for earnings trajectory in the backdrop of unimpressive returns of cement stocks and moderating valuations.
Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.