Archive · 9 Dec 2025
Cement Industry Faces Mixed Outlook
Cement companies in India are expecting a mixed future.
Some think they will make more money this year because they will sell more cement and charge a bit more.
However, others say that the prices and demand have been weak recently, and it might be hard to raise prices because there is a lot of cement being produced.
The price of cement is expected to stay around Rs 354–359 for a 50 kg bag.
The companies are also planning to build more factories, but this might lead to more competition and lower prices.
Overall, while some companies are doing well now, the future is uncertain and might take a while to improve.
Cement manufacturers' profitability is expected to rise by 2.5–3.5% this fiscal year, with volume growth projected at 6.5–7.5% year-on-year.
Average pan-India cement prices are expected to remain rangebound at Rs 354–359 per 50 kg bag, with a GST reduction from 28% to 18% expected to weigh on retail prices but offset by higher demand.
Near-term margins for cement companies remain under pressure due to muted demand and pricing, with volume contraction in the third quarter and weak price recovery.
Demand is expected to grow 6-7% year-on-year in FY26, and growth across FY25-30 is projected at 7-8% annually, taking demand to 630-635 million tonnes by FY30.
Supply overhang is likely to lead to further consolidation with price wars, and utilisation is estimated to remain subdued at 67-68% despite demand growth and supply outrunning demand.
- Who
- Cement manufacturers in India
- What
- Mixed outlook on profitability, volume growth, and pricing
- When
- This fiscal year and future projections
- Where
- India
- Why
- Varying factors including demand, pricing strategies, and supply increases
Optimistic View
Pessimistic View
Profitability and Volume Growth
Optimistic View
Cement manufacturers' profitability is expected to rise by 2.5–3.5% this fiscal year, with volume growth projected at 6.5–7.5% year-on-year, and operating margins projected to expand to 18–20%.
Pessimistic View
Near-term margins for cement companies remain under pressure due to muted demand and pricing, with volume contraction in the third quarter and weak price recovery.
Pricing and Demand
Optimistic View
Average pan-India cement prices are expected to remain rangebound at Rs 354–359 per 50 kg bag, with a GST reduction from 28% to 18% expected to weigh on retail prices but offset by higher demand.
Pessimistic View
Prices and demand remained muted in the third quarter, with pan-India trade prices down by Rs 3 per 50kg bag in November, and aggressive market share strategies and supply increases limiting price hikes.
Future Projections
Optimistic View
Demand is expected to grow 6-7 per cent Y-o-Y in FY26, and growth across FY25-30 is projected at 7-8 per cent annually, taking demand to 630-635 million tonne by FY30.
Pessimistic View
Supply overhang is likely to lead to further consolidation with price wars, and utilisation is estimated to remain subdued at 67-68 per cent despite demand growth and supply outrunning demand.
- Profit Boost
- 2.5–3.5%
- Volume Growth
- 6.5–7.5% year-on-year
- Average Cement Price
- Rs 354–359 per 50 kg bag
- GST Reduction
- From 28% to 18%
- Operating Margins
- 18–20% (up from 16% last fiscal)
- Realisation Growth (First Half)
- 5%
- Realisation Growth (Second Half)
- 0-2%
- Demand Growth (FY26)
- 6-7% year-on-year
- Projected Demand (FY30)
- 630-635 million tonnes
- Utilisation Rate (FY30)
- 67-68%
