Indian Cement Sector to Grow 7–8% in FY26; Large Players to Lead

New Delhi, April 10, 2026: The Indian cement sector is set to grow by 7–8% in the current financial year, according to a report by Systematix Research. The report highlights that strong demand recovery and improved pricing will drive this growth.

Large Companies to Drive Industry Expansion

Major cement companies currently hold nearly 65% of the industry’s total capacity. As a result, they are in a strong position to capitalize on growth. Their advantages include:

Better cost efficiency
Operational flexibility
Economies of scale

For instance, UltraTech Cement is expected to achieve around 12% growth, while Ambuja Cement may see 10% growth, supported by optimized assets.

Performance Outlook Across Cement Companies

Meanwhile, different companies are likely to show varied performance:

JK Cement could grow by around 14%, benefiting from a lower base
Shree Cement and Ramco Cements may grow slowly at around 2%
ACC, Dalmia Bharat, and Nuvoco Vistas are likely to grow at 6–8%, matching industry trends

Demand Recovery Strengthens Market

Importantly, demand has started recovering after a weak first half of the fiscal year. This recovery is driven by:

Increased individual housing construction
Growth in the non-trade segment

Consequently, cement companies are likely to report around 8% year-on-year volume growth in Q4 FY26.

Rising Prices Boost Revenue

At the same time, companies have increased cement prices since January. Therefore, they are expected to achieve:

2–3% quarter-on-quarter rise in realisations
Strong pricing in southern and eastern regions
Stable pricing in northern, western, and central markets

Because of higher prices and improved volumes, the sector may record:

8% growth in volume
13% growth in revenue
11% growth in EBITDA
3% growth in profit after tax

Costs Decline but Challenges Remain

On the positive side, companies have reduced operational costs. In fact, cost per tonne may fall by ₹30, thanks to improved efficiency.

However, several risks still exist:

Rising global energy prices due to geopolitical tensions
Possible diesel price hikes after elections
Shortage of polypropylene bags increasing packaging costs

Even so, companies currently have enough inventory to manage short-term disruptions.

Overall, the Indian cement sector is moving towards steady growth in FY26. Large players will likely lead this expansion due to their scale and efficiency. Nevertheless, companies must carefully manage input costs and price volatility to sustain profitability in the coming months.