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Cement Demand Surges 11% in Q3, Fueling Revenue Growth for Companies

Cement companies are poised for revenue growth in the third quarter, supported by an estimated 11% year-on-year surge in demand. This growth is primarily driven by strong government infrastructure spending and sustained demand from the affordable housing segment. Rural markets are expected to outperform urban ones, aided by favorable monsoon conditions and wage growth. While competitive pricing persists, sustained volume growth is forecast to be the key revenue driver for the sector.

Key Points: Cement Sector Q3 Revenue Growth on 11% Demand Surge

  • 11% YoY cement demand growth in Q3
  • Infrastructure and housing are key drivers
  • Rural demand outperforming urban markets
  • Volume growth to drive revenue despite price competition
2 min read

Cement companies likely to post revenue growth in Q3, demand may surge by 11% YoY: Report

Cement demand projected to grow 11% YoY in Q3FY26, driven by infrastructure and housing, boosting company revenues despite competitive pricing.

"Robust volume growth is expected to continue into Q3FY26 - Axis Direct Report"

New Delhi, January 6

Cement companies are expected to register revenue growth in the third quarter results, supported by strong demand momentum, with cement demand projected to record 11 per cent year-on-year growth in Q3FY26, according to a report by Axis Direct.

The report stated that Cement demand in Q3FY26 for the coverage universe is estimated to grow 11 per cent YoY, driven by stronger infrastructure activity and continued demand from the affordable housing segment.

It stated "Robust volume growth is expected to continue into Q3FY26, supported by housing demand and government-led infrastructure spending".

It noted that rural demand is likely to outperform urban markets during the quarter. This trend is expected to be supported by above-average monsoon conditions and steady wage growth in rural areas. At the same time, sustained infrastructure spending is expected to underpin overall cement volumes and provide stability to demand.

According to the report, the demand environment for cement remains strong, and the positive trend is expected to continue in the second half of FY26.

While pricing may remain competitive due to heightened competition and incremental supply additions, cement manufacturers are likely to benefit from sustained volume growth.

The report highlighted that infrastructure activity continues to remain a key growth driver, alongside steady housing demand.

Looking at the full financial year, cement demand is expected to grow in the range of 7-8 per cent in FY26. This growth is likely to be supported by the government's continued emphasis on infrastructure development and sustained housing activity across the country.

The report added that the government's capital expenditure push is expected to continue supporting cement demand in the near term.

During the quarter, non-trade demand is reported to have accelerated. This was led by a decline in cement prices following the GST rate cut, which helped improve affordability and supported higher offtake, particularly in price-sensitive segments.

Overall, the report maintained a positive outlook for the cement sector, with volume growth remaining the key driver of revenue performance in Q3FY26 and beyond, despite a competitive pricing environment.

- ANI

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Reader Comments

P
Priya S
Good to see rural demand outperforming. The mention of above-average monsoon and steady wages is key. A strong rural economy is the backbone of India. My father in our village in UP was saying construction work has picked up a lot recently.
A
Aman W
Positive report, but I hope this volume growth actually benefits the common man. Sometimes these corporate profits don't trickle down. The GST cut helping affordability is a good step. Need to ensure cement is available at fair prices locally.
S
Sarah B
As someone watching the markets, this is a solid indicator. Infrastructure and housing are long-term plays. The note about competitive pricing keeping a check on inflation is crucial. Sustainable growth is better than a price bubble.
V
Vikram M
The focus on affordable housing is the right way. So many young families in cities need homes. If demand stays strong, maybe companies will invest more in newer, greener technologies too. Construction sector needs to modernize.
K
Karthik V
Hope the companies also focus on environmental impact. More construction is good, but we must not ignore sustainable practices. Using fly ash and managing dust should be part of this growth story. Progress with responsibility.

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