Cement prices across India may increase by Rs. 10-15 per bag from mid-October as manufacturers seek to offset rising fuel and other input costs, according to an assessment by Emkay Research. The potential revision comes as higher petcoke and imported coal prices put pressure on industry margins.

The brokerage estimates that elevated input costs have increased expenses for cement companies by around Rs. 300-400 per tonne. It has also assessed that the industry would need a sustained price increase of around Rs. 10 per bag to offset cost inflation and support profitability.

Spot prices of petcoke and imported coal were around 20 per cent and 16 per cent above their respective second-quarter averages. The prices stood at USD 175 and USD 150 per tonne, respectively, making energy costs a more significant burden for manufacturers. Emkay Research has projected a sequential decline of Rs. 200-250 per tonne in cement companies’ earnings during the second quarter of FY27, reflecting higher fuel costs and negative operating leverage.

The impact on individual companies will depend on their ability to pass on cost increases through price revisions and manage operating expenses. A sustained rise in cement prices could help manufacturers recover part of the additional costs, although the timing and extent of price realisations would remain important for sector profitability.

Cement volumes are projected to grow 7-8 per cent year-on-year in the first half of FY27, supported mainly by non-trade demand. Infrastructure projects and construction activity are expected to remain important consumption drivers, while infrastructure spending ahead of the 2029 general election could support demand over the next 18 months.

The sector is therefore balancing volume growth against elevated input costs. Manufacturers’ ability to implement and sustain price increases across markets will be a key factor in determining whether they can protect margins in the coming quarters.