New Delhi, June 4 -- Before the West Asia war broke out, the cement sector had one problem to deal with: muted prices. Intense competition and chase for market share kept prices under pressure in FY26, but benign input costs provided solace. That comfort is now out of the window.

Higher fuel (petroleum coke and coal), freight/transportation, packaging and raw material costs are dimming the sector's earnings prospects. Plus, with cheaper/previously bought fuel inventory exhausting and the Indian rupee's depreciation, would hurt cement companies that heavily relying on imported fuels.

Systematix Shares and Stocks (India) cautions that the June quarter (Q1FY27) will be the most challenging one for the industry in terms of cost. Polypropyle...