Surat (Gujarat) [India], November 20: BigBloc Construction Limited (BSE- 540061 and NSE – BIGBLOC) one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks and Panels in India is entering a defining phase of renewed growth momentum, supported by a revival in construction activities, easing pricing pressure in the AAC block segment, and multiple strategic initiatives that are set to strengthen its long-term position in India’s sustainable building materials industry. With improved capacity utilisation, expansion into new product segments, a promising joint venture in Thailand, and stronger promoter backing, the company is well-placed to deliver a robust performance in the second half of FY26.

After several challenging quarters marked by subdued demand and pricing pressure, the AAC sector is showing clear signs of recovery. Increased government focus on sustainable development and affordable housing—through programmes such as PMAY and Smart Cities Mission also driving greater adoption of energy-efficient construction materials. Developers increasingly recognise the advantages of AAC products, including faster construction, thermal efficiency, and long-term sustainability, contributing to rising market acceptance.

“The second quarter of FY2026 marked a period of steady improvement in operational performance for Bigbloc Construction, supported by recovering demand conditions and higher capacity utilisation across plants. The broader building materials sector is witnessing a gradual improvement, supported by a sustained government push towards affordable housing and urban infrastructure. In this environment, demand for sustainable, energy-efficient construction materials, such as AAC blocks, continues to grow. On the strategic front, the Company remains focused on ramping up utilisation levels across facilities and scaling its AAC wall panel operations.

Looking ahead, the medium-term outlook for the building materials sector remains positive, supported by continued government focus on infrastructure, housing, and industrial development. With the monsoon behind us and demand momentum improving, the Company expects higher utilisation levels and improved operating performance in the coming quarters.”

The promoters group have increased their holding in the company to 72.84% as of September 2025, acquiring 2.05 lakh shares from the open market during the September quarter. The move underscores promoters’ long-term conviction in the company’s strategy, expansion roadmap, and future value creation potential. The strong promoter backing further strengthens investor sentiment and enhances governance stability.

BigBloc’s joint venture with Siam Cement Group (SCG), one of Asia’s largest cement and building materials companies, is emerging as an important growth driver. The JV’s Kheda unit continues to ramp up operations, supported by rising demand for AAC blocks and panels. With utilisation improving steadily, management expects stronger contributions from the JV in the coming quarters as more developers embrace advanced and sustainable construction solutions.

The company is accelerating expansion to capture the growing demand for green building materials. StarBigBloc Building Material has secured all key approvals—Town Planning Clearance, Gram Panchayat approval, Land Registration, and NA order—for its upcoming Indore project, set to become India’s largest greenfield AAC manufacturing facility. This facility will significantly enhance scale and reinforce BigBloc’s leadership position.

The company is also expanding into high-growth construction chemicals through its Umargaon facility, adding jointing mortar, ready-mix plaster and tile adhesives to its portfolio. The commissioning of the new chemicals unit in H2 FY2026 will further broaden revenue streams, enhance margins, and reinforce BigBloc’s positioning as a fully integrated green building materials player.

With its ESG profile now launched on ESG World and solar power capacity rising to 2,375 kW—meeting 22% of its power needs—BigBloc continues to emphasise sustainable growth and responsible manufacturing practices.

Way forward for Strong H2FY26 and Beyond

With a recovering industry environment, stronger pricing discipline, robust promoter support, and strategic expansion across products and geographies, BigBloc Construction is well-positioned for sustained growth. The worst appears to be behind the company, and the momentum built in Q2 is likely to accelerate in H2 FY26, supported by higher utilisation, new capacity additions, and improving market sentiment.

BigBloc is now firmly on a path to scale operations, deepen product diversification, and strengthen its footprint as a leading integrated green building materials company in India.

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