Archive · 6 Jan 2026
Cement Demand Rises in Q3FY26
Cement companies in India are expected to see a big increase in sales in the third quarter of 2026.
The demand for cement is projected to grow by 11% compared to the same period last year.
This growth is mainly due to more construction activities and a focus on affordable housing.
Rural areas are expected to see more demand than cities, thanks to good monsoon conditions and steady income growth.
The government's spending on infrastructure is also helping to keep the demand for cement strong.
Despite some pricing pressure, cement companies are expected to report better profits due to higher sales volume and lower input costs.
Overall, the cement sector is looking positive, with volume growth being the main driver of revenue, even though prices might stay competitive.
Cement demand projected to grow 11% YoY in Q3FY26, driven by infrastructure and housing demand.
Rural demand expected to outperform urban markets due to favorable monsoon and wage growth.
Government infrastructure spending and housing activity to support sustained cement demand.
Full-year cement demand expected to grow 7-8% in FY26, supported by government capital expenditure.
GST rate cut on cement improved affordability, boosting demand in price-sensitive segments.
- Who
- Cement companies and the Indian market
- What
- Projected 11% YoY growth in cement demand for Q3FY26
- When
- Third quarter of fiscal year 2026 (Q3FY26)
- Where
- India
- Why
- Driven by infrastructure activity, affordable housing, and government spending
- Projected Cement Demand Growth
- 11% YoY in Q3FY26
- Key Growth Drivers
- Infrastructure activity and affordable housing
- Rural vs. Urban Demand
- Rural demand expected to outperform urban markets
- Full-Year Demand Growth
- 7-8% in FY26
- GST Impact
- Rate cut improved affordability, boosted demand
- EBITDA Growth
- 30% YoY increase expected
- Volume Growth
- 5.5% YoY for the industry, 16% for market leaders
- Operating Cost
- Expected to remain flat YoY
- EBITDA per Tonne
- ₹880 per tonne, 9% YoY increase
- Operating Cost per Tonne
- ₹4,516 per tonne, 1% YoY decrease