← Business Metric: Industry Specific (Industrials & Materials) (all topics)
Spread - cement (realisation less variable cost)
What it is
The cement spread - realisation less variable cost per tonne - was around Rs 2,704 in Q4 FY26, down over Rs 50 sequentially. Power, fuel and freight are the dominant costs, with petcoke and coal driving the fuel line
EBITDA per tonne diverges sharply between leaders and laggards
Impact on industries
- Spreads fell even in the strongest quarter, showing cost pressure and pricing rigidity compressing profit regardless of demand
- Petcoke and coal prices move with global energy markets, and the lagged impact of fuel purchases shows up a quarter or two later
- EBITDA per tonne divergence is where execution shows - leaders run near Rs 1,000+ while weaker players sit far below on the same product
- Renewable and waste-heat recovery cut power cost, though industry OPBIDTA per tonne is expected to moderate from Rs 900-950 in FY26 to Rs 820-870 in FY27