India’s long-term cement demand outlook remains strong, supported by sustained growth in housing, infrastructure, and urban development, according to a report by PL Capital released on Wednesday. At a national level, cement prices rose by 7 per cent year-on-year, increasing from Rs 330 per bag in August 2024 to Rs 354 per bag in August 2025.

The highest price point during the period from July 2023 to August 2025 was recorded in November 2023, when average prices peaked at Rs 387 per bag. However, in August this year, the all-India average price declined by Rs 6 per bag month-on-month to Rs 354.

The eastern region led this downward trend, with Patna seeing the steepest correction due to a slowdown in construction caused by heavy rainfall, seasonal softness, and local festivals. Demand is expected to improve as the monsoon retreats, though pricing recovery is likely only after the festive season concludes.

“For cement companies, the next two months will be critical in balancing cost pressures with demand revival,” the report noted. Post-monsoon rural demand, traditionally a key growth driver, is projected to strengthen, aided by increased infrastructure expenditure.

Tushar Chaudhari, Research Analyst at PL Capital, said, “After remaining largely steady for the past three months despite the monsoon, cement prices witnessed a sharp correction in August, most notably in the eastern region.” He added that while companies are attempting to implement price hikes in anticipation of a potential Goods and Services Tax (GST) rate rationalisation, weak festive demand may blunt these efforts.

Although demand is expected to bounce back after the monsoon season, the commissioning of new cement production capacities may challenge the sustainability of current price levels. The report also highlighted that repeated announcements of price increases—without actual implementation—have led to inventory build-ups, thereby straining dealers’ working capital.