+
Top Cement Firms to Spend Rs 305 Billion in FY26
Cement

Top Cement Firms to Spend Rs 305 Billion in FY26

Despite subdued private capital expenditure, India’s nine leading cement manufacturers are set to invest a combined Rs 305 billion in FY26, banking on a surge in demand led by increased government infrastructure spending.

UltraTech Cement, part of the Aditya Birla Group, and Adani Group’s Ambuja Cement and ACC, each plan capital investments of Rs 90 billion, topping the industry’s capex chart. Dalmia Bharat and Shree Cement are expected to invest Rs 35 billion and Rs 30 billion, respectively.

UltraTech, India’s largest cement producer, added 44 million tonnes per annum (MTPA) in capacity in the previous fiscal, reaching 184 MTPA, through both acquisitions (India Cements, Kesoram Industries) and organic growth. The company aims to add another 21 MTPA by FY27, targeting a total capacity of 211 MTPA.

The Adani Group, following its consolidation with Orient Cement, has surpassed 100 MTPA in combined capacity across Ambuja and ACC. The group plans to add 18 MTPA in FY26, aiming for 140 MTPA by FY28. Around Rs 60 billion will go into growth capex, with an additional Rs 25–30 billion allocated to efficiency improvements.

Dalmia Bharat, which expanded capacity by 2.9 MTPA last year, plans to invest Rs 35 billion, including Rs 1 billion for renewable energy. It has already announced a 6 MTPA capacity addition in Maharashtra and Karnataka for Rs 35 billion, and aims to raise its clinker capacity from 23.5 MTPA to 30.7 MTPA by FY27.

However, analysts warn that rising capex amidst uncertain demand could lead to overcapacity and pricing challenges. Pranav Mehta, Research Analyst at Equirus Securities, noted that sluggish demand recovery and capacity overhang may impact pricing discipline across the industry.

Ashutosh Murarka of Choice Broking added that prices may face downward pressure as 50–60 MTPA of new capacity comes online, with the eastern and southern regions particularly vulnerable due to low utilisation rates of 62–65 per cent and below 60 per cent, respectively.

Still, optimism remains for demand revival from the real estate sector, bolstered by the RBI’s recent interest rate cut, which could support cement consumption in the medium term.

Despite subdued private capital expenditure, India’s nine leading cement manufacturers are set to invest a combined Rs 305 billion in FY26, banking on a surge in demand led by increased government infrastructure spending.UltraTech Cement, part of the Aditya Birla Group, and Adani Group’s Ambuja Cement and ACC, each plan capital investments of Rs 90 billion, topping the industry’s capex chart. Dalmia Bharat and Shree Cement are expected to invest Rs 35 billion and Rs 30 billion, respectively.UltraTech, India’s largest cement producer, added 44 million tonnes per annum (MTPA) in capacity in the previous fiscal, reaching 184 MTPA, through both acquisitions (India Cements, Kesoram Industries) and organic growth. The company aims to add another 21 MTPA by FY27, targeting a total capacity of 211 MTPA.The Adani Group, following its consolidation with Orient Cement, has surpassed 100 MTPA in combined capacity across Ambuja and ACC. The group plans to add 18 MTPA in FY26, aiming for 140 MTPA by FY28. Around Rs 60 billion will go into growth capex, with an additional Rs 25–30 billion allocated to efficiency improvements.Dalmia Bharat, which expanded capacity by 2.9 MTPA last year, plans to invest Rs 35 billion, including Rs 1 billion for renewable energy. It has already announced a 6 MTPA capacity addition in Maharashtra and Karnataka for Rs 35 billion, and aims to raise its clinker capacity from 23.5 MTPA to 30.7 MTPA by FY27.However, analysts warn that rising capex amidst uncertain demand could lead to overcapacity and pricing challenges. Pranav Mehta, Research Analyst at Equirus Securities, noted that sluggish demand recovery and capacity overhang may impact pricing discipline across the industry.Ashutosh Murarka of Choice Broking added that prices may face downward pressure as 50–60 MTPA of new capacity comes online, with the eastern and southern regions particularly vulnerable due to low utilisation rates of 62–65 per cent and below 60 per cent, respectively.Still, optimism remains for demand revival from the real estate sector, bolstered by the RBI’s recent interest rate cut, which could support cement consumption in the medium term.

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?