How Do Cement Giants Compare On Operating Profit Margins?
Shree Cement, UltraTech Cement, Ambuja Cements, and Star Cement are among India’s leading cement producers. UltraTech Cement Limited, based in Mumbai under the Aditya Birla Group, is India’s largest cement & ready-mix concrete producer with a broad geography of operations. Shree Cement Limited, headquartered in Beawar (Rajasthan) & Kolkata, operates integrated plants, grinding units, and captive power generation; it's known for strong margin discipline. Ambuja Cements Limited, now part of the Adani Group, has focused expansion, regional strength, and cost management. Star Cement Limited is smaller, regionally focused (North-East & East), includes grinding units, and has recently shown higher margin improvements.
| Company | Operating Profit Margin / OPM (Recent Quarter) | YoY Change / Trend | Gross Margin (Latest TTM or FY) |
|---|---|---|---|
| Shree Cement | ≈ 25.2 % in Q1 FY26; up from ~18.1 % YoY. | Strong improvement year-on-year; modest sequential dip in revenue but margins held. | ≈ 62.7 % gross margin in recent FY. |
| Ambuja Cements | ≈ 19.0 % in Q1 FY26; up from ~15 % YoY. | Good year-on-year growth; some sequential moderation. | Gross margin typically in low 50s-60s. |
| Star Cement | ≈ 25.0 % in Q1 FY26; up from ~15.5 % YoY. | Strong year-on-year improvement; sequential pressures from costs likely. | Gross margin data limited; improving trend noted. |
| UltraTech Cement | Margins improving but pressured by soft pricing in some regions. | Improvement expected; highly sensitive to input costs. | Gross margin ~57.7 % in latest FY. |
Recent Results & Margin Dynamics
Shree Cement’s Q1 FY26 showed revenue of ₹5,281 cr, up modestly YoY, but net profit surged ~131 % YoY to ₹643 cr. OPM came in around 25 %. Ambuja posted revenue of ₹10,289 cr, with OPM ~19 %. Star Cement achieved OPM ~25 %, up from ~15 % YoY. UltraTech’s margins are improving in some regions, though price pressures remain. These numbers underline how efficiency and geography drive outcomes.
What Is Driving These Comparisons & What To Watch
- Geography: Eastern and southern markets offer better pricing leverage.
- Captive power: Reduces exposure to energy volatility.
- Input inflation: Coal, freight, and petcoke costs remain swing factors.
- Product mix: Premium cement and value-added sales deliver stronger margins.
- Seasonality: Monsoon demand dips still affect volumes.
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Investor Takeaway
Comparative data shows Shree Cement and Star Cement leading on operating profit margins, with Ambuja improving steadily and UltraTech strong in gross margins. Margin leadership is not static; input costs and regional pricing will continue to define outcomes. Investors should track quarterly data closely and focus on companies with scale, efficiency, and product mix advantages. The long-term sector outlook remains robust, supported by infrastructure and housing demand.
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