Cement Industry Shows Strong Growth Amidst Price Surges
The cement industry experienced a 9% growth in volume and an 8% rise in prices in May. Stable input costs and increasing demand from the housing and infrastructure sectors are expected to support further growth. ICRA anticipates a 6-7% volume increase in FY2026.
- Country:
- India
The cement industry in India has demonstrated notable growth, recording a 9% increase in volume to 39.6 million metric tonnes in May. Meanwhile, average cement prices climbed by 8%, according to a recent ICRA report.
The report indicates that despite lower sales realization, price growth to Rs 360 per 50 kg bag was observed. Stable energy prices for coal and petcoke, along with steady diesel costs, have contributed to improved operating margins.
Looking forward, ICRA projects cement volumes to grow by 6-7% to 480-485 million metric tonnes in FY2026, driven by robust demand from the housing and infrastructure sectors. The operating margins for the industry's key companies are likely to enhance by 80-150 basis points.
(With inputs from agencies.)
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- operating margins
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