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Cement Volume Growth In India To Stay At 6-7%

Cement Volume Growth In India To Stay At 6-7%

BY Realty+
Published - Monday, 28 Apr, 2025
Cement Volume Growth In India To Stay At 6-7%

According to a report by the Information and Credit Rating Agency (ICRA), cement volume growth in India is projected to stay at 6-7% during the Financial Year 2026, supported by rising demand from the housing and infrastructure sectors. This follows a 6.3% increase in cement volumes during FY2025.

Despite global economic uncertainties, significant capacity additions are anticipated, with projections of 43-45 million metric tonnes per annum (MTPA) in FY2026, compared to 32-35 Mn MTPA in FY2025. ICRA has maintained a stable outlook for the sector.

In the first half of FY2025, cement volumes grew modestly by 1.7% year-on-year to around 212 Mn metric tonnes due to factors such as General Elections and extended monsoons. However, the second half witnessed a strong recovery, with volumes increasing by 10.7% year-on-year to around 241 Mnmetric tonnes.

ICRA noted that eastern and northern India would lead capacity additions, with 22-24 Mn MTPA combined. The southern region, despite oversupply, is also seeing significant expansion to maintain market share.

Cement prices recovered from the third quarter onwards, following a 10 per cent decline earlier. Lower costs of coal and pet coke have provided interim relief to producers.

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