Cement Volumes Expected to Grow 6-7 Per Cent in FY2026: ICRA

26 Apr 2025 CW Team

The growth of cement volumes in India is projected to stay at 6-7 per cent during Financial Year 2026, supported by rising demand from the housing and infrastructure sectors, according to a report by Information and Credit Rating Agency (ICRA). This follows a 6.3 per cent 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 per cent 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 per cent 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 showed some recovery 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.

Source: ANI

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