Cement Stocks in Spotlight After GST Cut to 18%; UltraTech, Shree, Ambuja & More to Be in Focus

The GST Council has approved a reduction in the Goods and Services Tax (GST) on cement, cutting the rate from 28% to 18%.

As per news reports, the new rates will be effective from September 22, 2025. This long-awaited decision is expected to directly impact cement manufacturers and consumers alike, and could have a meaningful influence on stock market sentiment.

Impact on Pricing and Margins

The reduction in GST is expected to ease consumer costs, potentially lowering retail cement prices. While much of this benefit may be passed on to buyers, companies could retain a portion of it to strengthen their margins. This balance between affordability for consumers and profitability for producers is likely to drive near-term price action in cement stocks.

Potential Boost to Demand

Lower prices could trigger higher demand for cement, particularly from the housing and infrastructure sectors. This may lead to improved volumes for leading players like UltraTech Cement, Shree Cement, ACC, Ambuja Cements, Sagar Cements and more. Higher consumption, coupled with cost efficiencies, could enhance revenue growth over the coming quarters.

Stock Market Performance

So far in 2025, UltraTech Cement shares have gained 11% and Shree Cement has advanced 18%. Ambuja Cements has also risen by 7%. However, ACC has underperformed, with its stock falling 10% during the year. The GST cut could help revive sentiment around underperformers while further boosting momentum in outperforming peers.

Also Read: Best Cement Stocks in September 2025!

Conclusion

The GST rate cut from 28% to 18% is a positive structural move for the cement sector. It is likely to bring price relief to consumers, support margins for companies, and stimulate demand. This development positions cement stocks for potential growth, both in terms of market volumes and investor confidence.

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