Icra Sees 80–85 MT Cement Capacity Boost in Two Years

03 Jul 2025 CW Team

Icra expects 40–42 MT of fresh capacity to come on line in FY2026, up from 31 MT in FY2025. The eastern region will lead the way, adding about 14–15 MT of grinding capacity. Even with the build out, utilisation is likely to hover near 70 per cent, given the higher production base.

Average pan India cement prices eased to roughly Rs 340 per 50 kg bag in FY2025 from Rs 365 the year before, reflecting subdued demand in the first half. Producers lifted prices by 4–5 per cent in the second half, and Icra sees a further rise of 3–5 per cent in FY2026. Input costs should remain broadly stable, although swings in petcoke and freight—both tied to global crude oil—are a key risk.

Operating margins are projected to improve by 80–150 basis points to 16.3–17.0 per cent in FY2026. For Icra’s sample of large companies, operating profit before interest, tax, depreciation and amortisation (OPBITDA) per tonne is expected to grow 10–14 per cent to Rs 880–920. Revenue for these majors is set to rise 12–14 per cent, driven by 8–9 per cent volume growth and firmer prices.

Despite hefty capital expenditure plans, sector wide debt is likely to decline 7–8 per cent in FY2026 as big players continue repayments and prepayments. As a result, leverage (total debt to OPBITDA) should improve to 1.2–1.3 times, while debt service coverage (DSCR) strengthens to about 3.4–3.5 times. Large firms such as UltraTech Cement, ACC, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Cement and Ramco Cements are expected to outperform on revenue and profitability metrics, while smaller producers may struggle with margins and capital needs amid price volatility.

India’s cement industry is poised for its biggest expansion in years, with new capacity of 80–85 million metric tonnes (MT) scheduled over the next two financial years, a report by Icra shows. Production is forecast to reach 480–485 MT in FY2026—an increase of 6–7 per cent year on year—after climbing 6.3 per cent to 453 MT in FY2025, thanks to solid demand from housing and government led infrastructure projects.Icra expects 40–42 MT of fresh capacity to come on line in FY2026, up from 31 MT in FY2025. The eastern region will lead the way, adding about 14–15 MT of grinding capacity. Even with the build out, utilisation is likely to hover near 70 per cent, given the higher production base.Average pan India cement prices eased to roughly Rs 340 per 50 kg bag in FY2025 from Rs 365 the year before, reflecting subdued demand in the first half. Producers lifted prices by 4–5 per cent in the second half, and Icra sees a further rise of 3–5 per cent in FY2026. Input costs should remain broadly stable, although swings in petcoke and freight—both tied to global crude oil—are a key risk.Operating margins are projected to improve by 80–150 basis points to 16.3–17.0 per cent in FY2026. For Icra’s sample of large companies, operating profit before interest, tax, depreciation and amortisation (OPBITDA) per tonne is expected to grow 10–14 per cent to Rs 880–920. Revenue for these majors is set to rise 12–14 per cent, driven by 8–9 per cent volume growth and firmer prices.Despite hefty capital expenditure plans, sector wide debt is likely to decline 7–8 per cent in FY2026 as big players continue repayments and prepayments. As a result, leverage (total debt to OPBITDA) should improve to 1.2–1.3 times, while debt service coverage (DSCR) strengthens to about 3.4–3.5 times. Large firms such as UltraTech Cement, ACC, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Cement and Ramco Cements are expected to outperform on revenue and profitability metrics, while smaller producers may struggle with margins and capital needs amid price volatility.

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Infrastructure Urban

22 Oct 2025

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Infrastructure Energy

22 Oct 2025

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..