Strong Real Estate Growth to Boost Cement Demand in FY26
Real Estate

Strong Real Estate Growth to Boost Cement Demand in FY26

A report by Axis Securities projects sustained momentum in cement demand for FY26, backed by robust growth in the real estate market and government housing initiatives like the Pradhan Mantri Awas Yojana (PMAY). Large-scale construction under such schemes is expected to drive continuous demand for building materials, especially cement, which remains essential for housing infrastructure.
The report forecasts cement demand growth of 7 to 8 per cent in FY26, supported by the government’s focus on infrastructure development alongside ongoing real estate activities. Further reinforcement is anticipated from increased allocations to infrastructure and construction in the 2025-26 budget.
Despite a subdued performance in the first half of FY25, with year-on-year growth of only 2–3 per cent, the cement sector saw a strong recovery in the third and fourth quarters, expanding at a high single-digit pace. This positive trend is expected to continue into Q1 FY26, driven by rising government capital expenditure and revived construction activity.
For FY25 as a whole, the industry recorded overall growth between 4 and 5 per cent. Central government core sector data confirms an 8 per cent year-on-year increase in cement output during April-May 2025, propelled by strong infrastructure and construction activity.
Historically, the fourth and first quarters witness peak cement consumption due to favourable weather, heightened infrastructure spending, and a seasonal rise in real estate development.
Looking ahead, Axis Securities notes that while pricing may stay competitive amid increased supply and market rivalry, manufacturers are well positioned to benefit from sustained volume growth in FY26.

A report by Axis Securities projects sustained momentum in cement demand for FY26, backed by robust growth in the real estate market and government housing initiatives like the Pradhan Mantri Awas Yojana (PMAY). Large-scale construction under such schemes is expected to drive continuous demand for building materials, especially cement, which remains essential for housing infrastructure.The report forecasts cement demand growth of 7 to 8 per cent in FY26, supported by the government’s focus on infrastructure development alongside ongoing real estate activities. Further reinforcement is anticipated from increased allocations to infrastructure and construction in the 2025-26 budget.Despite a subdued performance in the first half of FY25, with year-on-year growth of only 2–3 per cent, the cement sector saw a strong recovery in the third and fourth quarters, expanding at a high single-digit pace. This positive trend is expected to continue into Q1 FY26, driven by rising government capital expenditure and revived construction activity.For FY25 as a whole, the industry recorded overall growth between 4 and 5 per cent. Central government core sector data confirms an 8 per cent year-on-year increase in cement output during April-May 2025, propelled by strong infrastructure and construction activity.Historically, the fourth and first quarters witness peak cement consumption due to favourable weather, heightened infrastructure spending, and a seasonal rise in real estate development.Looking ahead, Axis Securities notes that while pricing may stay competitive amid increased supply and market rivalry, manufacturers are well positioned to benefit from sustained volume growth in FY26.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code