Archive · 13 Dec 2025
Cement Margins to Rise 250 bps in FY26: Crisil
Cement companies in India are expected to make more money this year.
This is because they are selling more cement and charging a bit more for it.
The price of cement will stay about the same, but the government is lowering the tax on cement, which might make it cheaper for people to buy.
The companies are also spending less on things like electricity and shipping, which helps them make more profit.
However, the cost of raw materials like limestone is going up.
Overall, the companies are expected to be more profitable this year, but they need to watch out for things like higher energy prices or natural disasters that could affect their costs.
Cement margins expected to rise by 250-300 basis points in FY26 due to higher realisations and stable costs.
Cement volume growth projected at 6.5-7.5% year-on-year, with a stronger second half driven by pent-up demand.
Average Pan-India cement prices to remain rangebound at ₹354-359 per 50 kg bag, with GST reduction exerting downward pressure on retail prices.
Operating margins expected to expand to 18-20% from 16% last fiscal, supported by stable costs and higher demand.
Regional price trends vary, with the east and south regions expected to see price recovery, while other regions may experience a decline.
- Who
- Cement manufacturers in India
- What
- Expected rise in cement margins by 250-300 basis points in FY26
- When
- Fiscal year 2025-2026
- Where
- India
- Why
- Due to improved realisations driven by volume growth, premiumisation, and stable costs
- Cement Volume Growth
- 6.5-7.5% year-on-year
- Average Cement Price
- ₹354-359 per 50 kg bag
- GST Rate Reduction
- From 28% to 18%
- Operating Margin Expansion
- 18-20% from 16% last fiscal
- Power Cost Reduction
- 2-3% this fiscal
- Freight Cost Reduction
- 1-2% this fiscal
- Analyzed Manufacturers
- 14 major cement manufacturers
- Industry Revenue Coverage
- 85% of the industry's revenue