Cement is emerging as a top sectoral bet for 2026, with CLSA forecasting a 20%+ profit pool growth for the second straight year. A revival in housing activity, sustained infrastructure spending and a likely private capex recovery are set to drive demand momentum. Sector consolidation is restoring pricing power, giving large players an edge in market share gains. CLSA’s top picks remain UltraTech Cement and Ambuja Cement. With January–March being a peak construction season and the Union Budget expected to maintain a strong infra focus, the near-term outlook looks supportive. While large caps offer stability, select mid-sized players like JK Lakshmi Cement and JK Cement could outperform due to recent capacity expansions, making the cement space attractive across risk profiles in 2026.
JM Financial remains constructive on select heavyweights and mid-caps. "Our top picks are UltraTech in large caps and JK Cement in mid-caps," it said.
According to Axis Direct, the sector’s performance in Q2FY26 was driven by a 16 per cent rise in volumes and a 4.5 per cent improvement in realisations, which helped expand EBITDA margins.
The brokerage estimates that the average EBITDA per tonne for cement companies under its coverage will decline by approximately Rs 193 sequentially in the September quarter.
At the end of June quarter, UltraTech Cement held 25,25,29,160 shares or 81.49% stake in India Cements. To meet minimum public shareholding norms, it needed to pare its stake in India Cements to 75%.
An analyst from Anand Rathi said that Eternal has witnessed a sharp rally of nearly 66 per cent from its recent bottom of Rs 195, and is currently trading above the Rs 320 mark.
An analyst from Master Capital said that AB Capital has broken out above its long-term resistance zone around Rs 244 and retested it with a bullish pin bar, signalling fresh buying interest.
Nomura has maintained its ‘Buy’ rating on the stock and raised its target price by 9 per cent to Rs 13,900 from Rs 12,800.
Sagar Cements aims to leverage this favourable pricing environment to boost its volume growth between 9 per cent and 14 per cent year-on-year to reach 6–6.3 million tonnes in FY26.
Grasim share price: Morgan Stanley said the implied holding company discount for Grasim Industries has narrowed sharply over the past couple of years.
Analysts contine to remain positive on UltraTech Cement and expect the stock to deliver storng return, compared to its peers, say Dalmia Bharat.





