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From ESG to EBITDA: Indian Cement Makers Turn to Solar and Green Power to Protect Margins Photograph: (AI)
India’s leading cement manufacturers are increasingly turning to solar power, waste heat recovery systems (WHRS) and other renewable energy sources, not just to meet sustainability targets but also to strengthen profitability and reduce exposure to volatile fuel costs.
Recent earnings calls and sustainability disclosures from Ambuja Cements, Shree Cement and Sagar Cements indicate that renewable energy is becoming a core component of operational strategy, with companies investing aggressively in green power assets to lower energy costs and support long-term decarbonisation goals.
Among the three, Shree Cement has emerged as one of the frontrunners in renewable energy adoption. The company disclosed that the share of green electricity in its total power consumption increased to 61% in the March quarter of FY26, up from 59% a year earlier. Managing Director Neeraj Akhoury said, “The company’s share of green electricity in total electricity consumption stood at 61% in Q4 FY26, up from 59% in Q4 FY25,” adding that the company continues to ramp up its green power generation portfolio, which now stands at 666.5 MW.
The renewable push is also gaining momentum at Ambuja Cements, where management has identified green energy as a major source of future cost savings. During its earnings call, CEO Vinod Bahety said the company expects significant operational benefits from increasing renewable energy utilisation. “In terms of the green energy cost… which is going to see a substantial improvement further in our overall utilization. Therefore, I strongly believe ₹150 to ₹200 savings will come from these components,” he said.
Ambuja’s green power share reached 32% in Q4 FY26, compared with 26% previously, while the company has set a target of achieving 60% green power by FY28 as part of its broader decarbonisation strategy. The company has also accelerated investments in solar, wind and waste heat recovery projects to reduce its dependence on conventional energy sources.
Meanwhile, Sagar Cements is increasingly positioning renewable energy as a key profitability driver. Joint Managing Director Sreekanth Reddy told investors that the company expects margins to improve through a combination of WHRS, solar power and operational efficiencies. “We expect profitability to improve, supported by structural cost efficiency initiatives. This includes benefit from WHRS and increasing share of renewable energy through solar power,” he said.

The company recently commissioned 2.8 MW of waste heat recovery capacity and expects the balance 1.55 MW of its 4.35 MW WHRS project to become operational by the end of June.
The growing emphasis on renewable energy comes as power and fuel costs continue to account for a significant portion of cement production expenses. Industry executives increasingly view captive renewable generation and WHRS not only as sustainability initiatives but also as effective hedges against fluctuations in coal and petcoke prices.
The trend is also reflected in the companies’ long-term climate commitments. Sagar Cements has committed to achieving net-zero emissions by 2050, identifying renewable energy transition and waste heat recovery as key levers for reducing carbon emissions. Ambuja is pursuing a similar pathway through increased renewable energy deployment and lower-carbon production processes, while Shree Cement continues to expand one of the largest renewable power portfolios in the domestic cement sector.
With cement demand expected to remain supported by infrastructure spending and construction activity, industry participants believe renewable energy investments will increasingly influence both competitiveness and profitability. As companies seek to improve margins in a cyclical market, solar power, wind energy and waste heat recovery are rapidly moving from the periphery of corporate sustainability programmes to the centre of business strategy.
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