Cementing Growth: Challenges and Prospects in Indian Cement Industry

The Indian cement industry is poised for mid single-digit growth in the upcoming fiscal year, driven by steady demand from housing and infrastructure. ICRA projects a growth of 6-7% in FY27, supported by capacity expansions and favorable economic reforms.

The Indian cement industry is set to maintain its growth trajectory in the next fiscal, according to a report by rating agency ICRA. The sector is projected to grow by 6 to 7 percent in FY27, driven by steady demand from housing and infrastructure projects.

ICRA anticipates the addition of 85-90 million MTPA capacity during FY2026-FY2027, with operational EBITDA estimated between Rs 880 and 930 per Metric Tonnes in FY2027. This is attributed to improved pricing and a surge in volumes.

Furthermore, reforms such as a reduction in GST from 28% to 18% and increased government infrastructure spending are expected to boost demand. Major firms are expanding capacities to enhance market share, with regions like North and Central India likely to see higher capacity utilization.