• Pricing and costs: Cement prices are currently stable despite floods in the Northeast, with war-related cost escalations expected to be passed on once post-monsoon demand picks up. Coal costs are projected to stabilize in Q2 following rake allocation bottlenecks, while packaging bag prices remain elevated.
• Margin outlook: Muted seasonal demand will keep spreads and margins steady in Q2, but profitability is projected to improve from Q3 onward, reaching an estimated ₹1,600 per ton for FY27.
• Capacity expansion: The company is executing a 5 million ton organic expansion in Rajasthan and Haryana over the next two years to enter North India, funded via internal accruals and debt. This organic push supports the broader target of reaching 17 MTPA by the end of FY29.
• Northeast competition: The prospective entry of peers like Shree Cement, Ambuja, and JK Lakshmi is not exerting pricing pressure today due to difficult terrain and weather slowing commissioning timelines, pushing any competitive impact out by two to three years.