India’s cement sector is set to close FY26 on a robust note, with demand momentum remaining firm in the final quarter, supported by infrastructure spending and resilient rural housing activity.
Industry estimates suggest cement volumes for major companies could rise by around 10–11% year-on-year in Q4FY26, driven by peak construction season demand. This growth comes despite a higher base in the same period last year, indicating sustained underlying strength in the sector.
Rural markets are expected to outperform urban centres, aided by favourable monsoon conditions and improving wage trends. Analysts say this has supported housing construction in non-urban regions, while continued government investment in roads, railways and other infrastructure projects has underpinned overall consumption.
Official data appears to reinforce this trend. Core sector figures released by the government show cement output grew by about 10% year-on-year during January and February 2026, reflecting strong activity across infrastructure and construction segments.
For the full financial year, cement demand is projected to grow by approximately 7–8%, suggesting a steady recovery trajectory for the industry after periods of volatility.
Policy measures are also expected to support long-term demand. A reduction in GST rates to 18% is likely to lower the cost burden for first-time homebuyers, potentially improving affordability. Combined with the government’s ‘Housing for All’ initiative, this is expected to drive demand particularly in Tier-2 and Tier-3 cities.
Lower prices may also encourage consumers to shift towards premium cement brands, benefiting larger, established players with stronger brand portfolios.
Looking ahead to FY27, the demand environment is expected to remain positive. While pricing pressures may persist due to rising competition and additional supply, sustained volume growth is likely to support the sector’s overall performance.
