Stocks to buy: Cement sector set for steady growth in fy26; Brokerages Bulish on these four stocks

Cement stocks to buy: After a challenging start to fY25, the Indian Cement Sector Rebounded Strongly in the March Quarter, Setting the tone for a more steable and profitable fy26. Supported by Firm Pricing, Cost Optimization, and Strong Demand Recovery, Companies Across the Board Delivered Better-Youn-Expected Results in Q4Fy25.

Sector-wide ebitda per metric ton (ebitda/mt) jumped over 300 sequestly to 1,055/mt, marking a clear recovery from the lows of 2qfy25. The Industry Closed fy25 with an installed capacity of Around 655 Million Tonnes per Annum (MTPA), Reflecting a 4.8% Year-or-Year Expansion.

Major Players like Ultratech Cement and JK Cement Posted Strong Volume Growth of 16.9% and 14.6% Yoy, Respectly, Driven by BOTH Demand Revival and Contributions from Newly ACURLY ACUKUIRD ASSETS.

DURING The Quarter, Ultratech Cement and Dalmia Bharat Commissioned 6.3 MTPA and 2.9 MTPA of New Capacity, Respected. Birla Corporation and Dalmia Bharat also Announced Fresh Expansion Plans of 6.2 MTPA and 6 MTPA. This capacity addition signals Rising Confidence in Long-Term Demand Trends, Supported by Increased Government Infrastructure Spending and Housing Activity.

Management commentaries Across Top Players Point to a Demand Growth Forecast of 6–7% in FY26. Several Brokerage, however, estimate an even higher potential growth of 8–9%, citing tailwinds from urbanisation, rural housing, and commercial real estate.

A rebound in Residential Real Estate, Along With Retail and Office Space Expaniation, is also expected to keep the carep care demand buoyant. Furthermore, Pan-India Cement Price Have Risen By Approximately 4% in 1qfy26-to-Date, LED by Sharp Hikes in Southern and Eastern Markets, which bodes well for regional Profitability.

While The Pricing Environment Remains Healthy – With April 2025 Witnessing Sharp Price Hikes in the Southern Region – Early Onseet of the Monsoon Cold Dampen Momentum in the First Quarter. Brokerage cautions that the seasonal weakness also lead to near-term stock consolidation. However, Underling Fundamentals Remain Intact, Backed by Improving Utilization Levels and a favorite cost environment, especially for power and fuel.

Brokerage Stay Bulish on Sector Outlook

Following Q4 Results, Brokerages have maintained a positive outlook on the cement sector. Systematix institutional equities noted that the industry exited fy25 on a strong note, with improvement demand and partial price absorption in key markets like the East and North.

Kentrum Broking Pointed to Consolidation-Led Discipline and Improving Infrastructure and Housing Momentum as Key Growth Drivers in FY26, Projecting Demand Growth Between 6% and 7.5%.

Axis Securities Remains Positive as Long-Term Demand Drivers are Intact and Expects Cement Demand to Grow at a Cagr of 7% -8% Over FY24-27E. It Anticipates Sector Consolidation to Benefit Large Players Through Economies of Scale, Supply Chain Efficiency, and Better Pricing in the long term. Despite ongoing capacity additions, it believes long-term cement Demand will outpace supply.

Ultratech Among Top Cement Stock Picks

Systematix Institutional Equites have Picked Ultratech Cement, Ambuja Cements, And JK Cement as it Top Picks Within Its Coverage Universe, with Price Targets of 14,038, 649, and 5,863, respectively.

Centrum Broking also maintains a bully 14,038, 649, and 5,863, respectively.

Axis Securities have listed Ultratech Cement (Target Price: 13,510), JK Cement ( 5,740), and birla corporation ( 1,560) As Its Top Conviction Ideas, Emphaising The Importance of Monitoring Price Trends, Fuel Costs, and Demand Revival Post-Elections. The brokerage retained buy calls on these three counters.

JM Financial, Too, Has Reiterated Its Preference for Ultratech Cement and JK Cement, Pointing to Expected Demand Growth, Sustainable Cost Savings, And A Gradual Improvement in Prosting in PRICIND Profitability in FY26.

Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.