INDIA BUILDING MATERIALS : Cost headwinds hover amidst price hike volatility

研报英文原文证据摘录

INDIA BUILDING MATERIALS : Cost headwinds hover amidst price hike volatility

EQUITIES

BUILDING MATERIALS

INDIA BUILDING MATERIALS

Cost headwinds hover amidst price hike volatility

c8% volume growth in 4QFY26; cINR15-20/bag price hikes in Apr’26 followed by flat May9 JUNE 2026

Sector Research Report Overall, the sector posted c8% y-y volume growth in 4QFY26, fuelling c6.5% growth in FY26, led by

Production time: 14:40* (London time) JKCE, while DALBHARA lagged the industry growth. Blended realisation/t was up c2% q-q, mirroring

Research Analysts & Publishing Entities price hikes across trade (+c1.5% q-q) and non-trade, alongside an improved trade mix for most

Nirransh Jain players. Companies noted better pricing in Apr-May’26 as they try to pass recent cost escalation.

BNP Paribas Securities India Private Our checks indicate the trade price hike of cINR15-20/bag across regions, driven by North and WestLimited

+91 22 6196 5039 in Apr’26, though prices steadied in May-26 as weaker demand forced the rollback of early attempts.

nirransh.jain@asia.bnpparibas.com

EBITDA/t declined cINR70/t y-y in 4Q; industry’s capacity crossed 700MTPA in FY26

Industry’s operating cost/t fell marginally by c1% q-q in 4QFY26 (up c3% y-y), despite operating

leverage, reflecting a partial impact from higher packaging and raw-material prices. Still, industry

fared better than street expectations on P&F - despite steep surge in pet coke prices - aided by fuel

optimisation, low input cost inventory and higher green energy mix. Overall, EBITDA/t was cINR885/t

(down cINR70/t y-y). The industry’s capacity has crossed 700MTPA in FY26, with further c115MTPA

slated over the next 2-3 yrs. ACEM’s recalibration of aggressive capacity expansion seems promising