Cement stocks rally as GST rate reduced to 18%; UltraTech Cement, Ambuja stock surge 3% each

Cement GST rate: The GST Council announced major reforms on Wednesday, simplifying the goods and services tax (GST) from the current four slab structure of 5, 12, 18 and 28% to a two-rate structure of 5 and 18%. Meanwhile, a special 40% slab will be introduced for a select few items such as high-end cars, tobacco and cigarettes.

GST rate on cement has been reduced to 18% from 28% earlier during the GST Council meeting. This move is likely to bring big relief for the real estate and infrastructure industry and is expected to boost the demand, especially in the housing sector, as lower construction costs can be passed on to buyers, making housing more affordable.

Cement stocks like UltraTech Cement, Ambuja Cements, ACC Ltd, Shree Cement and others are in the spotlight following the GST rate cut announcement on cement. UltraTech Cement rose over 2.5% in its opening trade, while Ambuja Cement and ACC Ltd are up 2 and 3% respectively.

*as of 9:15 am

So far this year, UltraTech Cement shares have delivered over 12% return to investors, while its consolidated Q1FY26 net profit surged 49% YoY to ₹2,226 crore, compared to ₹1,495 crore in the same period last year. The company also posted a 13% growth in revenue, which came in at ₹21,275 crore. Meanwhile, Adani Group owned Ambuja Cements has gained 8.7% year-to-date, while ACC Ltd has declined 9.3%.

Dr Niranjan Hiranandani, Chairman, Hiranandani and NAREDCO National, says, "The GST rationalisation is a festive bonanza for Indian consumers and a strategic boost for the economy. By enhancing purchasing power, stimulating consumption, and helping contain inflation, this reform creates a multiplier effect that will propel India’s GDP growth beyond 8%."

"For the real estate and infrastructure sectors, the reduction of GST on critical construction materials like cement and steel from 28% to 18% is a landmark reform. This will significantly ease input costs, improve project viability, and accelerate infrastructure development across the country. Affordable housing, in particular, stands to gain as reduced construction costs can be passed on to homebuyers," he adds.