India’s cement industry witnessed a subdued start to the summer season, with demand remaining under pressure in May 2026 due to adverse weather conditions, labour shortages and regional disruptions. While cement prices largely remained stable across the country, manufacturers are expected to push through fresh price hikes in June as rising input costs continue to squeeze margins.
Industry sources said anticipated price increases were largely deferred during May because of weak market conditions. However, dealers across several regions now expect price hikes of around ₹10 per bag in northern and eastern India, while southern markets could see increases of up to ₹20 per bag in the coming weeks.
The eastern region experienced sluggish demand, particularly in West Bengal, where state elections, heatwaves and raw material shortages affected construction activity. Bihar, however, showed signs of recovery. In the south, labour shortages linked to elections, industrial action in Hyderabad and unseasonal rainfall dampened demand. Northern India fared relatively better, with labour availability improving towards the end of the month, supporting a gradual recovery in construction activity.
Central India emerged as one of the stronger-performing regions, reporting healthy demand trends that are expected to continue through June. Western markets also recorded an improvement in demand, although planned price hikes were not implemented, keeping realisations largely unchanged from April levels.
At the same time, manufacturers continue to grapple with rising production costs. Petcoke prices, a key fuel used in cement manufacturing, have climbed significantly compared with the previous quarter. Higher packaging and logistics expenses are also adding pressure on profitability.
Analysts believe the sector’s near-term performance will depend on several factors, including the success of upcoming price hikes, trends in housing and infrastructure demand, and the broader economic impact of geopolitical developments.
Among listed cement companies, analysts continue to favour JK Cement, citing its growth prospects and relatively strong positioning in the current market environment.
