Will UltraTech Cement & Adani Group Win Big In 2026? - Brokerages Weigh In

With expectations of an uptick in cement production in Q3FY26, brokerage firm Deven Choksey placed UltraTech Cement and Adani Group companies to be better positioned to capitalise on this demand, benefiting from economies of scale and diversified regional presence.

Meanwhile, industry experts anticipated a gradual pick-up in construction activities towards December, driven by infrastructure projects and rural housing initiatives, "but the quarter as a whole is expected to register demand growth of around 4-5% year-on-year (YoY)."

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Cement Price Hikes In Q3FY26

"No significant price hikes were implemented in Q3FY26; instead, average pan-India cement prices declined by approximately 2.5% in both October and November 2025, reaching around INR 330 per bag by November, a 1% YoY decrease, the report noted.

"This softness was attributed to competitive pressures from excess capacity and subdued demand, offsetting earlier gains in the fiscal year where prices were up 5% YoY over the first eight months at INR 350 per bag," it said.

The outlook for Q3FY26 remains challenging for cement companies, with falling prices and moderate volume growth likely to squeeze margins and lead to a decline in profitability, however the brokerage firm noted 22.1% upside for Ultratech Cement, and 23.1% for ACC, which was recently absorbed into Ambuja Cements.

Q3FY26 Earnings Expectations: UltraTech Cement Ltd

"We anticipate base case revenue of INR 2,21,578 Mn for Q3FY26, reflecting a 24.6% YoY growth, driven by robust volume expansion and improved realizations. EBITDA is projected at INR 38,889 Mn, up 34.3% YoY, while PAT stands at INR 18,532 Mn with 36.3% YoY increase. Volume growth is estimated at 24.1% YoY to 38 MT, with realization per ton rising 1.5% YoY to INR 5,879," the brokerage house said.  

Key drivers of growth: This included resilient rural demand, infrastructure projects, and integration synergies from acquisitions, supporting sustained PAT growth through cost efficiencies and premiumisation in upcoming quarters.

Q3FY26 Earnings Expectations: ACC Ltd

On the other hand, “ACC Ltd is expected to report base case revenue of INR 64,965 Mn in Q3FY26, reflecting 9.5% YoY growth driven by volume expansion and improved realisations. EBITDA is projected at INR 8,336 Mn, down 25.3% YoY due to cost pressures, while PAT stands at INR 5,901 Mn with a 45.9% YoY decline influenced by higher depreciation and tax impacts. Volume growth is anticipated at 12.7% YoY to 11 MT, supported by infrastructure momentum, with realization per ton rising 18.5% YoY to INR 5,823.”

Key drivers of growth: Upcoming quarters will benefit from steady demand in housing and infrastructure, government initiatives like PMAY and Bharatmala, cost efficiencies from renewable energy integration, and capacity expansions, aiding PAT recovery through operating leverage and margin improvements.