Cement Sector Set for Growth: Demand Surge Expected

Cement prices are poised to rise by 2-4% in the current fiscal year, with demand growth projected at 6.5-7.5%, driven by increased budget allocations for infrastructure and rural housing projects. The cement sector anticipates a revival of urban housing in FY26 due to interest rate cuts and better execution of governmental schemes.

Cement prices in India are anticipated to increase by 2-4% this fiscal year, which could enhance revenue for cement companies, according to a recent report from Crisil.

Demand for cement is projected to grow between 6.5% and 7.5% due to budget boosts for core infrastructure and rural housing, as well as favorable monsoon conditions driving agricultural income.

Despite a dip in FY25 caused by election-related slowdowns and distributed monsoons affecting construction, the demand is set to rebound, propelled by an 11% increase in infrastructure allocations across 12 states.

(With inputs from agencies.)