SYNOPSIS: Cement majors including Shree Cement and Dalmia Bharat reported mixed Q3 FY26 results amid aggressive capacity expansion plans, with varied revenue growth and profitability trends as industry supply accelerates through FY28.
Cement manufacturers have announced expansion plans totalling nearly 158 million tonnes (MT) between FY25 and FY28, indicating a projected capacity CAGR of about 7.4 percent during this period. Clinker capacity additions are estimated at ~77 MT, translating into a CAGR of 5.8 percent, according to Citi. The brokerage has reassessed its demand-supply outlook for the Indian cement sector, highlighting a notable acceleration in planned capacity additions over the next three years.
Citi estimates that clinker-supported expansions will result in an effective supply increase of around 143 MT, averaging nearly 48 MTPA over the period. Regionally, effective capacity growth is projected to vary for FY25-FY28E, with the North expected to record an 11 percent CAGR, the East and Central regions around 7 percent, and the South and West ~5 percent during the same period. Listed below are some notable cement stocks that have reported their financial results for the third quarter of FY26:
The Ramco Cements Limited
With a market cap of Rs. 26,390.3 crores, the stock is trading in the green at Rs. 1,116.85 on BSE, up by around 0.4 percent on Monday. For the quarter, the company posted a revenue from operations of Rs. 2,106 crores, reflecting a sequential decline of around 6 percent QoQ compared to Rs. 2,239 crores in Q2 FY26. However, on a year-on-year basis, revenue grew nearly 6 percent from Rs. 1,983 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 386 crore, indicating an impressive increase of around 395 percent QoQ from Rs. 78 crores in Q2 FY26, as well as a rise on a year-on-year basis by nearly 112 percent from Rs. 182 crores reported in Q3 FY25.
The company plans to achieve cement capacity of nearly 31 MTPA by March 2027 including debottlenecking of existing integrated units and brownfield expansion at Kolimigundala. Meanwhile, the capex for FY26 is estimated to be at Rs. 1,100 crores, a reduction of Rs. 100 crores from the earlier estimate of Rs. 1,200 crores.
Star Cement Limited
With a market cap of Rs. 8,825 crores, the stock is trading in the green at Rs. 218.35 on BSE, up by over 2 percent on Monday. For the quarter, the company posted a revenue from operations of Rs. 880 crores, reflecting a sequential growth of around 9 percent QoQ compared to Rs. 811 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue increased by over 22 percent from Rs. 719 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 74 crore, indicating a marginal increase of around 4 percent QoQ from Rs. 71 crores in Q2 FY26, as well as an impressive increase on a year-on-year basis by nearly 722 percent from Rs. 9 crores reported in Q3 FY25.
Shree Cement Limited
With a market cap of Rs. 95,902.6 crores, the stock is trading in the green at Rs. 26,580 on BSE, up by around 0.2 percent on Monday. For the quarter, the company posted a revenue from operations of Rs. 4,801 crores, reflecting a sequential growth of around 1 percent QoQ compared to Rs. 4,761 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue increased by nearly 5 percent from Rs. 4,573 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 268 crore, indicating a decrease of around 14 percent QoQ from Rs. 310 crores in Q2 FY26, but a rise on a year-on-year basis by nearly 38 percent from Rs. 194 crores reported in Q3 FY25.
Shree Cement is rapidly expanding its RMC business with 25 operational plants at present. RMC sale volume jumped by 143 percent on a YoY basis. The company is increasing its RMC market reach across all key markets.
During the quarter, the company commissioned a cement line of 3 MTPA capacity at its integrated project plant at Jaitaran, Rajasthan. With this, the company’s installed cement production capacity in India (including its wholly owned subsidiaries) increased to 65.8 MTPA, strengthening its position as India’s third largest cement group.
Dalmia Bharat Limited
With a market cap of Rs. 38,844 crores, the stock is trading in the green at Rs. 2,071 on BSE, up by around 0.2 percent on Monday. For the quarter, the company posted a revenue from operations of Rs. 3,506 crores, reflecting a sequential growth of around 3 percent QoQ compared to Rs. 3,417 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew nearly 10 percent from Rs. 3,181 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 128 crore, indicating a decrease of around 46 percent QoQ from Rs. 239 crores in Q2 FY26, but an impressive rise on a year-on-year basis by nearly 94 percent from Rs. 66 crores reported in Q3 FY25.
Orient Cement Limited
With a market cap of Rs. 3,235 crores, the stock is trading in the red at Rs. 157.45 on BSE, down by around 1 percent on Monday. For the quarter, the company posted a revenue from operations of Rs. 636 crores, reflecting a marginal decline of around 1 percent for both QoQ and YoY from Rs. 643 crores.
Net profit for the quarter stood at Rs. 28 crore, indicating a decrease of around 43 percent QoQ from Rs. 49 crores in Q2 FY26, but a significant rise on a year-on-year basis by nearly 180 percent from Rs. 10 crores reported in Q3 FY25.
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