Surge in Cement Industry: Growth Driven by Demand and GST Reforms

The Indian cement industry is projected to grow by 8-9% in the second half of FY26, driven by pent-up demand and liquidity improvements. A GST cut to 18% and premiumisation will aid in a 250-300 bps margin growth. Prices are expected to stay range-bound and costs stable.

The Indian cement industry is poised for substantial growth, according to a recent Crisil Intelligence report. Citing pent-up demand and improved liquidity, the sector is expected to witness an 8-9% volume growth in the second half of FY26.

This optimistic outlook is coupled with projected margin improvements of 250-300 basis points, bolstered by factors such as higher realisation, stable costs, and a key reduction in the Goods and Services Tax to 18%.

The analysis of 14 major manufacturers, covering 85% of industry revenue, also highlights stable average cement prices across India, expected within the range of Rs 354-359 per 50 kg bag. Premiumisation and rising demand are noted as significant drivers of this trend.