Archive · 4 Oct 2026
Cement Prices Recover in September as Producers Push Hikes
Cement prices were mostly steady from July to September, but the quarter’s average price was a little lower than the previous quarter.
Prices started going up near the end of September.
The average retail price reached about Rs 359 per bag after rising Rs 6–7.
Prices rose by different amounts in different parts of India, with the biggest average increase in the South.
Cement makers are facing higher costs for fuel and other materials.
Analysts say those costs could hurt profits in the near term.
Companies announced more price increases for October.
Whether customers accept and keep paying those higher prices will matter for companies’ profits.
Pan-India cement prices fell 1–1.5% sequentially in Q2FY27, despite avoiding the usual seasonal decline.
In September, average retail prices rose Rs 6–7 per bag to about Rs 359, a multi-quarter high.
South India recorded the largest regional increase, averaging about Rs 11 per bag; West India rose about Rs 4.
Analysts expect Q2FY27E industry profitability to decline Rs 250–300 per tonne, citing high fuel costs and weak operating leverage.
Companies announced October hikes of Rs 10–20 per bag across most markets; how much sticks will affect margin recovery.
- Who
- Cement companies and analysts, including JM Financial and Elara Capital.
- What
- Cement prices began rising in September after a weaker quarter, while companies announced further price hikes for October.
- When
- July–September quarter of Q2FY27, with price increases reported in September and further hikes announced for October.
- Where
- Across India, with regional price changes reported in the South, North, Central, East and West.
- Why
- Higher input costs, including fuel, coal and petcoke, make sustained price increases important to producers’ margins.
Price increases
Cost and demand pressures
Price recovery and margin prospects
Price increases
Cement companies pushed through September increases and announced further October hikes, which analysts say could support margin recovery if sustained.
Cost and demand pressures
The quarter remained weaker than the preceding one on average, while monsoon disruption and uneven demand limited gains; analysts also expect elevated input costs to pressure near-term margins.
- Q2FY27 average price change
- Pan-India average prices were 1–1.5% lower sequentially.
- September retail price increase
- Rs 6–7 per bag month-on-month.
- September average retail price
- Around Rs 359 per bag, described as a multi-quarter high.
- South India
- Prices rose around Rs 11 per bag on average in September.
- Estimated Q2FY27E profitability change
- JM Financial analysts estimated a decline of Rs 250–300 per tonne quarter-on-quarter.
- October announced hikes
- Rs 10–20 per bag across most markets; analysts expected Rs 5–15 increases in the first week.
- Input cost indicators
- Analysts estimated diesel prices were up about 9% year-on-year and 5% quarter-on-quarter; international coal prices rose 39% year-on-year and petcoke prices 34%.