Cement Demand Surges in Q3FY26 as Prices Dip, Nuvama Reports

• Cement sector demand revived in Q3FY26, with volumes rising approximately 7% year-on-year for 15 major companies.
• Despite a 3% sequential correction in realizations due to non-trade price adjustments, EBITDA per tonne increased 9% year-on-year to Rs 869, driven by savings in power, fuel, and operational expenses.
• Demand gained significant traction in Q3, with a 12% quarter-on-quarter volume growth for major companies.
• Price corrections in October-November 2026 were due to subdued demand, but non-trade prices improved by Rs 15-20 per bag in January 2026, reversing earlier cuts.
• Nuvama remains positive on the cement space, forecasting healthy demand in FY27E due to increased infra capex and anticipating an uptick in Q4 volumes from pent-up demand and government spending.