Investec Cautious on Cement Sector, Recommends 'Buy' for UltraTech, Ambuja, JSW, JK Cement

• Investec maintains a cautious view on the cement sector despite reiterating select stock preferences.
• Brokerage firm recommends 'Buy' ratings for UltraTech Cement, Ambuja Cements, JSW Cement, and JK Cement.
• Most cement manufacturers reported weaker operating performance with declining EBITDA per tonne, except UltraTech and JK Cement due to one-off reversals.
• Investec expects sequential improvement in spreads for the March quarter driven by modest price hikes and operating leverage, partially offset by rising fuel costs.
• Sector spreads likely peaked in Q1FY26 and may not see sustained expansion; leading players focus on brownfield expansion for better returns.