Archive · 23 Aug 2025
UBS Projects Strong Cement Demand Growth in India
The cement industry is expected to grow strongly, about 7-8% per year, thanks to new houses, roads, and buildings.
More cement factories will start operating soon.
Prices went down a bit last year but are expected to go up in the next couple of years.
Fewer companies in the market will help keep profits strong in the long run.
Rainy season slowed things down a bit.
Cement demand is projected to grow at a 7-8% CAGR.
Growth is driven by rural and urban housing, infrastructure, and commercial projects.
Capacity additions are expected to pick up starting in Q4 FY25.
Prices will rebound in FY26-27 after a fall in FY25.
Consolidation in the cement sector will support long-term margins.
- Who
- UBS and cement companies.
- What
- Cement demand is expected to grow at a 7-8% CAGR.
- When
- Over the medium term and specifically in FY25, FY26, and FY27.
- Where
- Demand growth is driven by rural and urban areas across India.
- Why
- Driven by infrastructure, housing and commercial projects, and market consolidation.
Positive Factors
Negative Factors
Price Outlook
Positive Factors
UBS expects prices to improve in FY26 and FY27.
Negative Factors
Strong capacity additions could limit price increases in FY26-27.
- Demand Growth (CAGR)
- 7-8%
- Growth Drivers
- Rural/Urban Housing, Infrastructure, Commercial
- Capacity Additions
- Q4 FY25
- Price Trend FY25
- Fell
- Price Trend FY26-27
- Rebound
