New Delhi, Sep 23
The reduction in Goods and Services Tax (GST) will boost the operating profit of cement companies by Rs 100-150 per metric tonne (MT), a report said on Tuesday.
The government move will also reduce overall construction expenses in rural housing by 0.8-1 per cent, boosting volumes and supporting enhanced capacity addition.
Backed by the healthy cement demand, average cement realisation (ex-factory price excluding GST) is expected to rise by 3-5 per cent in FY26, even as the input prices are expected to remain range-bound, credit rating agency ICRA said in its report.
Further, Operating Profit Before Interest, Taxes, Depreciation, and Amortisation (OPBIDTA) is likely to improve by 12-18 per cent to Rs 900-950/MT in FY2026, it added.