Lower power cost per tonne leaves an important question open: how much came from using energy more efficiently?
India Cements’ October 17 presentation reports that electricity use fell from 87.05 to 75.76 kilowatt-hours per tonne of cement in the September 2026 quarter, compared with a year earlier. Power cost per kilowatt-hour rose from ₹5.78 to ₹5.98.
Reported power cost per tonne nevertheless fell from ₹615 to ₹527. The company separately reported fuel cost per tonne rising from ₹1,004 to ₹1,143.
What the factory is making
Cement making starts with raw-material preparation. A kiln then turns the prepared material into clinker, an intermediate product. Grinding clinker with gypsum and other ingredients produces cement.
The International Energy Agency’s March 2021 technical account distinguishes fuel used for heat in clinker production from electricity used across preparation, clinker processing and grinding. Tonnes of clinker and tonnes of finished cement are different denominators.
Equipment and operating practices can improve efficiency. Material hardness, product fineness and the amount of clinker used in cement also affect energy intensity.
The production boundary matters
India Cements also reports buying clinker during upgrade shutdowns and allocating work-in-progress purchases across cost categories.
When a plant buys clinker, some processing happens elsewhere. Before interpreting lower electricity use as greater efficiency, ask which production stages the measure includes.
The presentation does not fully define those measurement boundaries or quantify the contribution of purchased clinker, equipment changes or power sourcing.
What to check next
For a useful comparison, keep the reporting period and production scope consistent, then examine electricity consumption, unit energy costs and kiln fuel separately.
The Crunch
Assessing factory efficiency requires a consistent production boundary and clear measures of energy use and cost.