India Cement Stocks 2026: FY26 ROCE & Margins Ranked

India's cement sector entered 2026 with a complex mix of tailwinds and headwinds: government infrastructure spending under PM Gati Shakti is at multi-year highs, yet volume growth has been uneven and input costs have pressured margins. Six of India's largest cement companies — which together account for roughly ₹6.5 lakh crore in combined market capitalisation — have corrected sharply from their 52-week highs, with ACC and Ambuja Cements down over 30%, and even the undisputed sector leader UltraTech Cement down 11.1% from its 52-week peak.

We pulled live FY26 annual data from the DocStoX dataset (sourced from NSE/BSE audited annual filings) for all six stocks and ranked them by ROCE and EBITDA margin — the two metrics that determine whether a capital-intensive business like cement is creating or consuming value. Every figure here is from the audited annual (FY26, March 2026) row. No TTM sums, no modelled projections. Price data is as of July 7, 2026.

The spread across these six companies is striking: ROCE ranges from 6% (Ambuja Cements) to 15% (JK Cement), EBITDA margins from 11% (ACC) to 22% (Shree Cement), and PE multiples from 12.17x (ACC) to 55.27x (Shree Cement). These quality gaps are not trivial — they exist within the same industry facing the same input-cost cycle and government-capex tailwind. Understanding them is the starting point for evaluating India cement stocks 2026 on a first-principles basis.

Why ROCE and EBITDA Margin Define Value in Cement

Cement manufacturing is inherently capital-intensive: kilns, grinding mills, captive power plants, mines, and logistics infrastructure require sustained investment before a single bag is sold. Return on Capital Employed (ROCE) measures how effectively each rupee deployed generates pre-tax operating profit. In an industry where capital cycles last decades, a company consistently at 15% ROCE is compounding shareholders' wealth; one at 6% is barely covering its cost of capital. The gap is not cosmetic.

EBITDA margin is the operating heartbeat: it measures how much of each revenue rupee survives after raw materials (limestone, coal/petcoke, gypsum, fly ash), power, freight, and employee costs. Cement EBITDA margins are driven by regional pricing power, captive power share, fuel-mix optimisation, and logistics discipline. The 11-percentage-point gap between ACC (11%) and Shree Cement (22%) within this group tells a story of very different cost structures and regional pricing dynamics — not merely different accounting treatments.

ROCE Rankings: The FY26 Scoreboard (July 7, 2026)

All figures are from NSE/BSE audited annual filings (period ending March 2026), pulled from the DocStoX dataset:

• JK Cement: 15% ROCE — highest in the group, EBITDA margin 17%, D/E 0.88
• UltraTech Cement: 13% ROCE — sector scale leader, revenue ₹88,512 Cr, EBITDA margin 19%
• ACC: 11% ROCE — cheapest valuation at 12.17x PE, EBITDA margin 11%
• Shree Cement: 10% ROCE — premium EBITDA margin at 22%, PE 55.27x
• Dalmia Bharat: 8% ROCE — strong 21% EBITDA margin, D/E 0.41
• Ambuja Cements: 6% ROCE — near debt-free (D/E 0.01), cheapest P/B at 1.79x

The most interesting tension in this data: JK Cement delivers the sector's best ROCE at 15% yet trades at a PE of 42x — a premium that confirms the market already sees ROCE leadership. Meanwhile Ambuja Cements, post-Adani acquisition, sits at only 6% ROCE despite the cleanest balance sheet in the group — reflecting the capital cost of an ambitious multi-year expansion programme. These are fundamentally different risk-return profiles within a single industry classification.

JK Cement (JKCEMENT): 15% ROCE — Best in the Sector

JK Cement is the quality standout in this analysis. At 15% ROCE and ROE of 15.6% — both the highest in the group — JK Cement delivers the most productive use of capital among India's top cement stocks. Revenue of ₹13,722 crore, PAT of ₹988 crore (PAT margin 7.2%), and EBITDA of ₹2,379 crore at a 17% EBITDA margin underline a business that has built strong regional dominance in North India's grey cement market while scaling its white cement and wall putty franchise nationally.

The key risk flag is leverage: D/E of 0.88 is the highest in the group, reflecting the debt load of ongoing capacity expansion. Market cap of ₹41,684 crore and PE of 42x suggest the market is already pricing in ROCE leadership. The current price of ₹5,395 is down 28.7% from its 52-week high of ₹7,565.5 — a significant correction from peak. EPS stands at ₹128.45 and book value at ₹911 per share (P/B 6.07x). Dividend yield: 0.36%.

UltraTech Cement (ULTRACEMCO): ₹88,512 Crore Revenue and Sector Dominance

UltraTech Cement is the undisputed scale leader. Revenue of ₹88,512 crore — more than double the next-largest company in this group (Ambuja Cements at ₹40,656 crore) — and EBITDA of ₹17,004 crore at a 19% margin underline its operational scale and broad pricing influence across India's regional cement markets. PAT of ₹8,188 crore (PAT margin 9.25%), ROCE of 13%, and ROE of 11.2% are solid for a company of this geographic diversity and network complexity.

D/E of 0.31 is manageable — UltraTech carries moderate leverage to fund capacity additions toward its 200 million tonne target. Market cap stands at approximately ₹343,289 crore (₹3.43 lakh crore) — the largest cement company by market cap in India and among the largest globally. PE of 42.04x reflects the scale premium. At ₹11,649, the stock is down 11.1% from its 52-week high of ₹13,110 — the least-corrected name in this group, consistent with liquidity premium on the sector's benchmark stock. EPS: ₹277.1. Dividend yield: 0.67%.

Shree Cement (SHREECEM): 22% EBITDA Margin at 55x PE

Shree Cement runs the highest EBITDA margin in this group at 22% — a level that reflects its superior fuel efficiency (waste-heat recovery systems and optimised petcoke blending), geographic concentration in North and East India where pricing dynamics are structurally stronger, and a relentlessly cost-conscious management culture. Revenue of ₹20,943 crore, PAT of ₹1,749 crore (PAT margin 8.35%), and EBITDA of ₹4,638 crore make it a mid-scale but high-quality operator within India cement stocks 2026.

ROCE of 10% trails JK Cement and UltraTech despite the superior margin — reflecting ongoing capacity investment absorbing capital. D/E of 0.08 is near-debt-free. The valuation is the most demanding in the group: PE of 55.27x. Market cap: ₹96,357 crore. At ₹26,710, the stock is down 17.8% from its 52-week high of ₹32,490. The market has historically paid a multi-decade premium for Shree's margin discipline; that premium remains intact even after the correction. EPS: ₹483.24. Dividend yield: 0.31%.

Ambuja Cements (AMBUJACEM): Near-Zero Debt (D/E 0.01), Transition Phase Returns

Ambuja Cements stands apart on balance sheet quality: D/E of just 0.01 — the cleanest leverage profile in this group by a decisive margin. Revenue of ₹40,656 crore, EBITDA of ₹6,577 crore at a 16% margin, and ROCE of 6% reflect a business in active transition. Post-acquisition by the Adani Group in 2022-23, Ambuja has been investing heavily in greenfield and brownfield capacity (targeting 140 million tonnes by 2028) — capex that is depressing near-term capital returns even as revenue scale grows substantially.

ROE of 8.85% and ROCE of just 6% are the lowest in the group on returns metrics — the transition-phase signature. PE of 22.79x is the second-cheapest in the group. P/B of 1.79x is the cheapest in the group on book value. Market cap: ₹107,703 crore (~₹1.08 lakh crore). At ₹435.9, the stock is down 30.2% from its 52-week high of ₹624.95. EPS: ₹19.13. Dividend yield: 0.47%.

ACC Limited (ACC): Sector's Value Play at 12.17x PE

ACC offers the cheapest valuation in this group — and among Indian large-cap cement stocks — at a PE of just 12.17x. Revenue of ₹25,962 crore, PAT of ₹2,137 crore (PAT margin 8.23%), and EBITDA of ₹2,958 crore at an 11% EBITDA margin place it at the bottom of the group on margin quality but well within sector norms for companies with a mixed urban-rural geography and limited captive power advantage.

ROCE of 11% is solid — third in the group. D/E of just 0.02 (near debt-free) and a P/B of 1.23x — the second-cheapest on book value. ROE of 10.9%. Market cap: ₹26,002 crore. At ₹1,384.4, ACC is down 31.8% from its 52-week high of ₹2,028.8 — the deepest correction in this group, which either reflects a valuation trap or a meaningful entry opportunity depending on one's view of demand and margin recovery. EPS: ₹113.8. Dividend yield: 0.56%.

Dalmia Bharat (DALBHARAT): 21% EBITDA Margin, 8% ROCE

Dalmia Bharat delivers the second-highest EBITDA margin in the group at 21% — impressively close to Shree Cement's 22% — on a revenue base of ₹14,804 crore. EBITDA of ₹3,083 crore, PAT of ₹1,157 crore (PAT margin 7.82%), and ROCE of 8% reflect a business that is operationally efficient on cost management but carrying leverage from capacity expansion. D/E of 0.41 and ROE of just 6.11% — the lowest ROE in the group — are the key concern flags.

PE of 29.45x and market cap of ₹33,551 crore. EPS: ₹60.73. P/B: 1.82x. At ₹1,788.8, the stock is down 28.3% from its 52-week high of ₹2,496.3. Dalmia's East India and South India regional positioning in markets with lower cement consumption per capita offers a long-run structural growth angle. The EBITDA margin quality (21%) is genuine; the ROCE (8%) needs to improve as expansion assets ramp utilisation. Dividend yield: 0.51%.

FY26 Profitability: The Full Scoreboard

All figures are from NSE/BSE audited annual filings (FY26, March 2026 period), sourced via DocStoX data:

• UltraTech Cement: Revenue ₹88,512 Cr | PAT ₹8,188 Cr | EBITDA Margin 19% | ROCE 13% | ROE 11.2% | D/E 0.31 | P/E 42.04x | Mkt Cap ₹343,289 Cr
• Ambuja Cements: Revenue ₹40,656 Cr | PAT ₹5,637 Cr | EBITDA Margin 16% | ROCE 6% | ROE 8.85% | D/E 0.01 | P/E 22.79x | Mkt Cap ₹107,703 Cr
• Shree Cement: Revenue ₹20,943 Cr | PAT ₹1,749 Cr | EBITDA Margin 22% | ROCE 10% | ROE 7.78% | D/E 0.08 | P/E 55.27x | Mkt Cap ₹96,357 Cr
• ACC: Revenue ₹25,962 Cr | PAT ₹2,137 Cr | EBITDA Margin 11% | ROCE 11% | ROE 10.9% | D/E 0.02 | P/E 12.17x | Mkt Cap ₹26,002 Cr
• JK Cement: Revenue ₹13,722 Cr | PAT ₹988 Cr | EBITDA Margin 17% | ROCE 15% | ROE 15.6% | D/E 0.88 | P/E 42x | Mkt Cap ₹41,684 Cr
• Dalmia Bharat: Revenue ₹14,804 Cr | PAT ₹1,157 Cr | EBITDA Margin 21% | ROCE 8% | ROE 6.11% | D/E 0.41 | P/E 29.45x | Mkt Cap ₹33,551 Cr

The most striking observation: JK Cement generates 15% ROCE on ₹13,722 crore of revenue — while Ambuja Cements generates only 6% ROCE on ₹40,656 crore. Scale does not automatically deliver returns in cement; operational efficiency, regional pricing, fuel cost management, and capital deployment discipline matter at least as much as size.

Catalysts to Watch in H2 FY27

1. Government infrastructure capex execution: Road, railway, urban infrastructure, and affordable housing schemes drive bulk cement demand. Acceleration in disbursement under PM Gati Shakti and the Union Budget's infrastructure allocation directly lifts cement volumes. Industry utilisation recovery toward 75–80%+ would be a meaningful margin catalyst across all six companies — fixed costs spread over higher volumes lift EBITDA per tonne nonlinearly.
2. Coal and petcoke price cycle: Fuel is the single largest variable cost in cement (roughly 18–22% of revenue for most players). Imported coal prices and domestic Coal India linkage costs set the floor on EBITDA margins. Any sustained decline in global coal prices disproportionately benefits companies with lower captive power — like ACC — that are more exposed to grid electricity and import costs. Shree Cement's waste-heat recovery advantage becomes relatively less powerful when coal is cheap.
3. Capacity utilisation recovery: The sector has added substantial capacity in FY24–26 (UltraTech targeting 200 MTPA, Ambuja targeting 140 MTPA). Industry utilisation is currently sub-75%. A demand uptick pushing utilisation above 80% would drive a step-change in industry EBITDA per tonne — this is the single biggest ROCE improvement lever for Ambuja and Dalmia Bharat specifically.
4. Real estate sector health: Residential real estate — particularly affordable and mid-income housing — is the largest single cement demand driver, accounting for roughly 60% of total cement consumption. Policy support (PMAY extensions, state-level housing schemes, urban redevelopment) drives volume, particularly in markets where ACC, Ambuja, and Dalmia have regional exposure.

The DocStoX Take

India cement stocks 2026 present a sector that has corrected meaningfully from peaks — five of six names are down more than 17% from 52-week highs — creating a better risk-reward than existed at peak multiples. The quality gaps within the group, however, are real and do not disappear with the price correction:

Best ROCE quality: JK Cement (15% ROCE, 42x PE, D/E 0.88). Among India cement stocks 2026, JK Cement's 15% ROCE and 15.6% ROE represent the clearest evidence of capital-efficient management in the sector. The risk is leverage — D/E of 0.88 is the highest in the group and is funded by expansion capex. For investors comfortable with that balance, JK Cement's ROCE-to-valuation combination is the most distinctive quality signal in Indian cement.

Best margin quality: Shree Cement (22% EBITDA margin, 55x PE, D/E 0.08). Shree's fuel efficiency and pricing-market positioning is reflected in the most consistent margins in Indian cement history. At 55.27x PE, the quality is fully priced in. The valuation leaves limited room for execution misses — but for long-duration investors, Shree has delivered on margins through multiple commodity cycles.

Cleanest balance sheet: Ambuja Cements (D/E 0.01, 6% ROCE, 23x PE, P/B 1.79x). Post-Adani, Ambuja carries near-zero debt into a 140 MTPA capacity expansion. The 6% ROCE is a transition-phase artefact — if the capacity programme executes on schedule and industry utilisation recovers, ROCE should normalise materially higher. The cheapest P/B in the group (1.79x) alongside the cleanest leverage profile makes Ambuja the most balance-sheet-anchored long-term bet.

Best value: ACC (12.17x PE, 11% ROCE, 31.8% below 52-week high). ACC is the value play in Indian cement — the cheapest PE in the sector at 12.17x, solid ROCE at 11%, near-zero debt. The 11% EBITDA margin is the concern (lowest in the group). At 12.17x PE, the market is pricing in limited recovery. If demand improves and ACC's cost efficiency closes the gap with peers, re-rating from 12x toward sector multiples would represent meaningful upside.

Scale and dominance: UltraTech Cement (13% ROCE, ₹88,512 Cr revenue, 42x PE). UltraTech's revenue is more than double its nearest competitor in this group. Scale gives it unmatched procurement leverage, logistics cost efficiency, and pricing influence across India's fragmented regional cement markets. For long-term infrastructure-cycle investors, UltraTech is the lowest-execution-risk way to own the India cement buildout story — at a premium valuation that is unlikely to compress unless its earnings growth decelerates.

Full live data, DocStoX AI verdicts, and fair-value estimates for all six cement stocks are available at docstox.com.

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By the DocStoX Desk — This is for informational purposes only and not investment advice. Please consult a SEBI-registered advisor before investing.