Mid-cap cement stocks, akin to their larger peers, are facing strong selling pressure with construction activity gradually slowing with the monsoon season gradually setting in across most parts of the country.
Of equal concern to investors is the continued difficult operating environment for cement companies and that’s despite hopes of a peace deal in the Middle East later this week.
Why Freight and Power Costs are Squeezing Mid-Cap Margins
For instance, retail fuel prices of diesel have been raised four times over the past few weeks and that is expected to push up key freight and forwarding charges for cement companies, going forward. Also, spot international pet coke prices have reached nearly $ 185 per tonne from $ 120 per tonne before the start of the Middle East crisis.
Investors have also been concerned about cement price realizations in the June 2026 quarter, with media reports highlighting cement companies facing difficulties in raising prices even in the peak construction season. The above trend is attributed to the local impact of the Middle East crisis coupled with the resistance of user industries to higher cement prices.
Mid-cap cement companies typically operate in a few states or particular region(s) of the country. For perspective, UltraTech Cement, an all-India player, it’s realisations grew barely an estimated 1.8% y-o-y to Rs 5,770 per tonne in the March 2026 quarter.
Mid-cap cement stock prices under pressure
The difficult operating environment has resulted in mid-cap cement stocks hovering above their 52-week lows – for instance, The Ramco Cements, gained 1.2% to Rs 893 on Wednesday, and the stock had hit a 52-week low of Rs 838.4 on 10 June, 2026.
Similarly, Nuvoco Vistas Corporation gained 3% to Rs 320 on Wednesday, and the stock had hit a 52-week low of Rs 276.3 on 24 March, 2026.
Meanwhile, India Cements fell 1.7% to Rs 386.4 on Wednesday, and the stock had hit a 52-week low of Rs 297.6 on 20 June, 2025.
JSW Cement gained 1.2% to Rs 130.5 on Wednesday, and the stock had hit a 52-week low of Rs 106.7 that was reached on 4 December, 2025.
We looked at the valuations of mid-cap cement companies on the two preferred valuation matrices, enterprise value (EV) per tonne, and EV / EBITDA (core operating profit) (view table below).
Valuation of mid-cap cement companies
| Cement company | EV per tonne ($) | EV / FY26 EBITDA (x) |
| The Ramco Cements | $82.0 | 16.3 times |
| JSW Cement | $89.0 | 16.4 times |
| India Cements | $91.0 | 31.9 times |
| Nuvoco Vistas Corporation | $59.6 | 7.6 times |
Company Releases For perspective, the sell-off in mid-cap cement stocks has resulted in their valuations on an EV per tonne coming off considerably from peak levels. For instance, The Ramco Cements had reached a peak valuation of nearly $109.8 per tonne in February, 2026.
Similarly, JSW Cement had reached a peak valuation of nearly $106.4 per tonne in early September 2025.
The largest domestic cement player, UltraTech Cement currently trades at nearly $185 per tonne, given its pan-India operations and also its operational synergies with nearly 200.1 million tonnes in cement capacity in mid-April 2026.
Also, mid-cap cement companies trade on the valuation matrix – EV to EBITDA between 7.6 times to 31.9 times. Meanwhile, UltraTech Cement trades on this valuation matrix at 20.6 times.
Q4FY26 Reality Check: How Operational Costs Impacted Mid-Cap Output
In contrast to large cement companies, mid-cap cement companies have not uniformly been able to offset higher input costs (view table below). In the case of JSW Cement, the company has highlighted that renewable clean energy accounted for 25.4% of its total power requirements as against 21.5% at the end of FY25. As a result, its power and fuel costs fell by 12% y-o-y on a per tonne basis in the March 2026 quarter. Its realisations grew 1% y-o-y according to investor presentation, and a tight check on costs helped the company’s profit before tax grow 183.7% y-o-y to Rs 214.9 crore in Q4FY26. JSW Cement had a cement capacity of 24.1 million tonnes at the end of FY26.
In contrast, The Ramco Cements has highlighted in its investor presentation that coal accounted for 69% of its fuel mix in the March 2026 quarter as compared to 66% a year earlier, and the resulting rise in power and fuel expenses by 5.7% y-o-y on a per tonne basis.
However, The Ramco Cements grew its realisations by nearly 5.3% y-o-y to Rs Rs 4,851 per tonne in the March 2026 quarter, given its focus on premium cement in key markets of eastern and southern region.
As a result, its operating profit margin rose 90 basis points y-o-y to 14.3% in the March 2026 quarter, despite a higher cost structure.
The Ramco Cements net profit was Rs 150.7 crore in the March 2026 quarter as compared to Rs 25.7 crore a year earlier, and it was helped by an exceptional gain of Rs 74.2 crore in the quarter under review.
The Ramco Cements had a cement capacity of nearly 30 million tonnes at the end of FY26.
Growth in operational parameters in Q4FY26
| (Per tonne / YoY%) | The Ramco Cements | JSW Cement | Nuvoco Vistas Corp |
| Power and fuel expenses (per tonne basis) | Rise of 5.7% | Fall of 12% | Rise of 4.6% |
| Freight and forwarding expenses (per tonne basis) | Rise of 5.5% | Fall of 1.5% | Rise of 3% |
For a perspective on how leading cement companies are managing a rising cost structure. In the case of UltraTech Cement, it’s key freight and forwarding expenses declined nearly 1% y-o-y to Rs 1,260 per tonne in Q4FY26. UltraTech Cement has once again highlighted that it has reduced the distance by 18 km in its distribution network on a pan India basis in the March 2026 quarter, and it has helped to keep costs in check on a per tonne basis, at a time when prices of petroleum products have shown a rising trend in the country.
Also, power and fuel expenses of UltraTech Cement fell nearly 5.5% y-o-y Rs 1,211 per tonne in the March 2026 quarter. The Mumbai-based cement company has once again benefited from an expansion in its renewable energy capacity, which amounted to 1,392 MW at the end of FY26 as against 612 MW at the end of FY24, according to the investor presentation for Q4FY26.
Return on Equity – which cement company uses capital most efficiently
| Cement company | Return On Equity (%) |
| The Ramco Cements | 3.3% |
| JSW Cement | 14.6% |
| India Cements | 0.8% |
| Nuvoco Vistas Corporation | 4.1% |
The Ramco Cements has a Return on Equity (RoE) of 3.3%, according to Screener.in. India Cements has a RoE of 0.78% while for Nuvoco Vistas Corporation it was 4.1%. JSW Cement has a RoE of 14.6%.
Growth outlook and Valuations
With cement companies finding it difficult to raise prices in different parts of the country in the June 2026 quarter, investors will once be monitoring mid-cap cement companies to see if they can manage their cost structure.
The immediate monitorable however will be the end of the crisis in the Middle East, and the consequent decline in the price of oil, and possibly other consumables like coal (as supply chains ease). As mid-cap cement companies have taken a big hit on account of cost pressures, an easing should directly benefit them as well.
Having said that, even if peace in the middle east materialises, cement companies may be left dealing with another challenge – the El Nino and its impacts on rural India.
Disclaimer:
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclosure: The writer and his family have no shareholding in any of the stocks mentioned in the article.
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