Indian Cement Sector Set for Growth Amid Rising Demand and Prices

Nuvama Research forecasts improvement in the Indian cement sector with rising demand and prices due to increased government capital expenditure. Despite a slow start in FY25, both central and state governments plan higher capital investments for FY26, boosting the sector's prospects.

The Indian cement sector is poised for growth, driven by increasing demand and prices, according to a report by Nuvama Research. The study indicates that the sector will gain from a low base in FY25 and strong demand conditions anticipated ahead.

Price hikes were noted in May 2025, with the southern region leading the trend. This was attributed to demand improvement, although a partial rollback of price increases is expected by the end of May. Capital expenditure by government bodies has bolstered cement demand.

The report highlights that while central government capex was down early in FY25, it rose by 8% by year-end. State government spending saw a 9% increase. Additionally, various states, barring Maharashtra, plan increased capital spending for FY26, aiming to sustain demand for cement.

(With inputs from agencies.)