The ongoing conflict in West Asia is expected to result in increase in input costs, thereby impacting the operating profitability of the cement sector. ICRA’s sample set is projected to witness a decline in OPBITDA/MT by 10-15% to Rs. 820-870/MT in FY2027. However, the debt protection metrics are likely to remain comfortable.

Exhibit : Trend in yearly Pan-India average cement prices

Source: ICRA Research; P - Projection