The Daily Brief Rock-solid quarter for the cement sector
Nov 7, 2025
This discussion dives into the impressive quarterly performance of major Indian cement companies, highlighting Ultratech and Adani's market gains. The podcast reveals strategies like Shree Cement's pricing-first approach and a notable shift to green energy. It also touches on logistics improvements and ambitious capacity expansion plans. Transitioning to insurance, listeners learn how companies adapted in response to financial crises, the rise of private equity, and the potential systemic risks in the sector. Insights on market dynamics keep the conversation engaging.
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Three Cost Drivers Define Cement Economics
- Fuel, logistics and raw materials dominate cement costs and determine profitability each quarter.
- Companies use green power, captive coal and debottlenecking to lower fuel and logistics expense per ton.
Expand Capacity Through Cheap Debottlenecking
- Use debottlenecking to expand capacity quickly and cheaply instead of building new kilns.
- Leverage group synergies to add low-capex capacity and accelerate rollout plans.
GST Cut Is A Long-Term Demand Lever
- GST cut from 28% to 18% will be passed fully to customers short-term but can boost long-term demand and premium-product sales.
- Removing the coal cess also reduces fuel costs structurally, supporting higher EBITDA per ton over time.