StockEdge Shines 3 Cement Stocks to Watch amid Sector Tailwind

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India’s cement majors — Ultratech, Ambuja, and Shree Cement — show divergent trends in profitability and expansion strategies, but sustainability and capacity growth remain the common themes driving sector optimism.

By S JHA

Mumbai, October 26, 2025 — A new StockEdge sectoral outlook has spotlighted three key players in India’s cement industry — Ultratech Cement, Ambuja Cements, and Shree Cement — as the companies to watch amid strong infrastructure demand, capacity expansion, and an accelerating shift toward renewable energy.

Ultratech Cement: The Market Leader Scaling New Verticals

With a market capitalization of ₹3.56 lakh crore, Ultratech Cement remains India’s largest cement producer and a true pan-India player, serving over 30,000 destinations nationwide. As of June 2025, it had an installed cement capacity of 186.9 MTPA and 397 ready-mix concrete (RMC) plants across 158 cities.

In FY25, Ultratech reported 7% YoY growth in revenue to ₹75,955 crore, while EBITDA surged 44% to ₹4,591 crore and PAT rose 49% to ₹2,226 crore. The company continues to expand its renewable footprint — increasing renewable capacity by 64% and waste heat recovery (WHRS) by 26% in FY25. It has set a target to meet 100% of its energy needs from renewable sources by 2050.
In a diversification move, Ultratech also announced a ₹1,800 crore capex to enter the wires and cables segment, marking its first venture beyond cement.

Ambuja Cements: Adani Group’s Debt-Free Growth Story

Ambuja Cements, part of the Adani Group, holds a 15.5% market share and plans to double capacity from 31 MTPA to 62 MTPA by 2028. Despite a moderate FY25 performance — revenue up 6% YoY to ₹35,040 crore but EBITDA down 7% and PAT lower by 9% — Ambuja’s zero-debt balance sheet and large cash reserves provide significant leverage for expansion.

EBITDA margins declined to 17.04% from 19.3% last year, while ROE fell to 11.2%. However, recent acquisitions — including Penna Cement Industries (100%) and controlling stakes in Sanghi Cement and Orient — position Ambuja as a consolidation-driven growth leader in the medium term.

Shree Cement: Lean, Green, and Margin-Focused

With a market cap of ₹1.07 lakh crore, Shree Cement is India’s third-largest producer, with 56.4 MTPA capacity and plans to expand to 80 MTPA by 2028. The company’s FY25 performance saw sales dip 8% YoY to ₹18,037 crore and EBITDA decline 12% to ₹3,837 crore, as management prioritized margin stability over volume growth.

Shree Cement maintains one of the lowest production costs in the industry and generates 65% of its energy from renewable sources. Its green power capacity currently stands at 582 MW, with a planned addition of 128 MW. The company’s debt-free position, high operating margins, and strong sustainability credentials reinforce its reputation as a resilient long-term bet in the sector.

Sector Outlook

According to StockEdge, India’s cement industry remains a long-term growth story driven by infrastructure projects, housing demand, and government capex. The three majors — Ultratech, Ambuja, and Shree Cement — demonstrate distinct strategies but share a common commitment to green energy transition and capacity growth.

“Sustainability and scale are now the twin pillars of competitiveness in India’s cement sector,” the StockEdge report concluded, adding that the industry’s strong fundamentals could support steady returns despite short-term margin pressures.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)