Synopsis:
India’s cement sector is experiencing rapid growth, with companies like Shree Cement Ltd, Ambuja Cements, Star Cement Ltd, and Ultratech Cement Ltd showcasing high operating profit margins (OPM). Their strong financial performance and robust growth prospects make them attractive to investors.
Cement stocks with high operating profit margins are gaining investor interest, as they indicate effective cost management, pricing power, and robust profitability despite rising input costs. Companies with strong margins are better positioned to withstand market fluctuations, capitalize on infrastructure growth, and deliver consistent returns, making them a top priority for both long-term and short-term investors.
What is Operating Profit Margin and why is it important?
Operating Profit Margin (OPM) is the percentage of a company’s revenue left over after paying all operating expenses, such as salaries, rent, and raw materials, but before paying interest and taxes. It is determined by dividing operating profit (EBIT) by revenue and multiplying by 100. OPM measures how efficiently a company’s core business generates profit from sales, regardless of financing or tax considerations.
It is important because it aids in determining operational efficiency and cost management. A higher OPM indicates that a company keeps more of its revenue, making it appealing to investors and useful for comparing performance across companies or industries. Tracking OPM over time reveals trends in profitability, allowing management to make more informed strategic decisions.
Below are a list of cement stocks with high OPM
Shree Cement Ltd
Shree Cement Limited is an Indian cement producer with an installed capacity of approximately 46.9 million tons in India and 50.9 million tons, including overseas operations. Its product line includes Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Portland Slag Cement (PSC), which cater to a variety of construction requirements. Its diverse brand portfolio includes Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement, and Rockstrong.
Shree Cement Ltd has a market value of Rs. 1,06,799.01 crore and closed at Rs. 29,600 on Friday down by 0.77 percent from its previous day closing price of Rs. 29,830. The company’s P/E stands at 71.8x, which is higher than the industry P/E of 47.4x. The ROCE of 5.29 percent, and ROE of 6.71 percent, indicates the company’s strong financial position.
In Q1FY26, the company reported a revenue of Rs. 5,281 cr, up 3.0 percent YoY from Rs. 5,124 cr in Q1FY25 but down 4.6 percent QoQ from Rs. 5,532 cr in Q4FY25. Net profit surged to Rs. 644 cr, a strong 131 percent YoY increase from Rs. 278 cr and a 12 percent QoQ rise from Rs. 575 cr, reflecting robust profitability improvement despite a slight sequential dip in revenue.
In Q1 FY26, the company reported an operating profit of Rs. 1,333 crore, achieving an operating profit margin of 25.24 percent, up from Rs. 927 crore and an OPM of 18.1 percent in the same quarter last year, reflecting a significant improvement in profitability.
Ambuja Cements Ltd
Ambuja Cements Limited is an Indian cement manufacturer that produces a variety of cement products, including Ambuja Cement, Ambuja Kawach, Ambuja Plus, and others. It also provides support services to homebuilders, contractors, architects, and engineers. Its subsidiaries are M.G.T Cements, Chemical Limes Mundwa, Dirk India, Bulk Cement Corporation, ACC Mineral Resources, Lucky Minmat, Singhania Minerals, and OneIndia BSC. As of June, 2025, the company has cement capacity of 104.5 MTPA, planning to reach 118 MTPA by March, 2026.
Ambuja Cements Ltd has a market value of Rs. 1,38,669.30 crore and closed at Rs. 561 on Friday, up by 0.11 percent from its previous day closing price of Rs. 560.40. The company’s P/E stands at 32x, which is lower than the industry P/E of 47.4x. The ROCE of 10.5 percent, and ROE of 8.73 percent, indicates the company’s strong financial position.
The company posted revenue of Rs. 10,289 crore in Q1FY26, growing 23 percent YoY from Rs. 8,392 crore and 3 percent QoQ from Rs. 9,981 crore, while net profit came in at Rs. 970 crore, up 24 percent YoY from Rs. 783 crore but down 24 percent QoQ from Rs. 1,282 crore, indicating strong annual growth with sequential profit moderation.
In Q1 FY26, the company reported an operating profit of Rs. 1,961 crore, achieving an operating profit margin of 19 percent, up from Rs. 1,280 crore and an OPM of 15 percent in the same quarter last year, reflecting a significant improvement in profitability.
Star Cement Ltd
Star Cement Limited, based in North-Eastern India, produces cement, clinker, and generates electricity. It operates in the cement and power segments, with an integrated 1.67 MTPA plant in Lumshnong, Meghalaya, and two grinding units in Sonapur and Mohitnagar, for a total capacity of approximately 5.7 MTPA. Its product line includes OPC 43 and 53 grades, PPC, PSC, and a value-added Anti Rust Cement (ARC) for hydraulic structures, mass concreting, masonry mortars, and plastering.
With a market valuation of Rs. 11,242.81 crore, Star Cement Ltd closed at Rs. 272.60 on Friday, up by 0.29 percent from its previous day closing price of Rs. 271.80. The stock’s P/E ratio is 46.6x lower as compared to industry P/E of 47.4x. With ROE of 6.05 percent, ROCE of 8.39 percent and debt to equity ratio of 0.14, highlights the company’s financial position.
In Q1 FY26, the company reported a revenue of Rs. 912 crore, up 21.4 percent YoY from Rs. 751 crore in Q1 FY25, but down 13.4 percent QoQ from Rs. 1,052 crore in Q4 FY25. Net profit for the quarter rose sharply to Rs. 98 crore, a 216 percent increase YoY from Rs. 31 crore in Q1 FY25, though it declined 20.3 percent QoQ compared to Rs. 123 crore in Q4 FY25.
In Q1 FY26, the company reported an operating profit of Rs. 228 crore, achieving an operating profit margin of 25 percent, up from Rs. 116 crore and an OPM of 15.45 percent in the same quarter last year, reflecting a significant improvement in profitability.
UltraTech Cement Ltd
UltraTech Cement, the flagship of the Aditya Birla Group, is India’s leading cement and Ready-Mix Concrete producer, offering comprehensive building solutions. With a massive grey cement capacity of 186.9 MTPA and operations across the globe, the company aims to be the undisputed leader in the building solutions industry while delivering superior value to its stakeholders.
With a market valuation of Rs. 3,64,518.13 crore, UltraTech Cement Ltd closed at Rs. 12,370 on Friday, down by 0.18 percent from its previous day closing price of Rs. 12,392. The stock’s P/E ratio is 52.8x higher as compared to industry P/E of 47.4x. It has an ROE of 9.29 percent, ROCE of 10.9, indicating the company’s financial position.
The company posted revenue of Rs. 21,275 crore in Q1FY26, up 13 percent YoY from Rs. 18,819 crore but down 8 percent QoQ from Rs. 23,063 crore. Net profit came in at Rs. 2,221 crore, rising 49 percent YoY from Rs. 1,493 crore but declining 10 percent QoQ from Rs. 2,475 crore, indicating solid annual growth with some sequential moderation.
In Q1 FY26, the company reported an operating profit of Rs. 4,406 crore, achieving an operating profit margin of 21 percent, up from Rs. 3,017 crore and an OPM of 16 percent in the same quarter last year, reflecting a significant improvement in profitability.
Written by Akshay Sanghavi
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