New Delhi, May 20 -- The operating profitability of Indian cement companies is expected to moderate in 2026-27, primarily due to elevated power, fuel and selling costs linked to the ongoing geopolitical tensions in West Asia.

According to a report by rating agency ICRA, the impact will be mitigated by a likely increase in cement prices. "The OPBIDTA per tonne for ICRA's sample set of cement companies is projected to decline by 10-15% to Rs 820-870/MT in 2026-27, compared to estimates of Rs 950-980/MT in 2025-26," the report said.

ICRA noted that power and fuel, alongside selling costs, constitute 50-55 per cent of the total operating costs for cement manufacturers. The ongoing West Asia conflict raised global crude oil prices, increasin...