The Price of Progress: Cement Costs Rise with Mineral Tax

The latest news from the cement sector indicates that prices are likely to go up following a new tax on minerals by states.
Highlights are:
Tamil Nadu's New Tax: The state has imposed a tax of ₹160 per tonne on limestone from February 20, 2025, after a Supreme Court verdict giving states permission to tax mineral rights.

Impact on Cement Manufacturers: Ramco Cements, Dalmia Bharat, and The India Cements will have higher costs of production, and they might raise prices by ₹8-10 per bag.

EBITDA Impact: The tax is likely to reduce Ramco Cements' EBITDA by approximately 9% and that of Dalmia Bharat by 3% in FY27 estimates.

Potential Future Taxes: Other states are likely to follow suit, affecting the industry further. 

Source: Business Standard, Cemnet, Moneycontrol.