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Cement Prices Set to Rise by March-End as Crude Costs Pinch Margins

Cement prices are anticipated to increase towards the end of March or early April 2026 as companies seek to offset rising input costs linked to crude oil. A Nuvama report states dealers are expecting these hikes to counter higher petcoke and packaging expenses. While government capital expenditure showed a year-on-year decline in January 2026, cumulative spending for the fiscal period remains up. The report maintains a positive sector outlook based on expected price increases and steady demand, despite ongoing softness in the real estate market.

Key Points: Cement Price Hike Expected in March-April 2026: Nuvama

  • Price hike expected by March-end
  • Rising petcoke & packaging costs
  • Demand outlook remains positive
  • Govt capex shows moderation
  • Real estate sector weakness persists
2 min read

Cement prices likely to rise by end-March amid rising crude costs: Nuvama report

Cement prices may rise in late March or early April 2026 due to higher crude-linked input costs like petcoke, says a Nuvama report.

"Dealers expect price hikes in late Mar-26/early Apr-26 to mitigate the impact of rising petcoke prices and packaging costs - Nuvama Report"

New Delhi, March 19

Cement prices are expected to surge towards the end of March or early April 2026 due to rising crude-linked input costs, according to a report by Nuvama.

The report highlighted that dealers are anticipating price hikes as companies look to offset the impact of increasing pet coke prices and higher packaging costs, both of which are influenced by rising crude prices.

"Dealers expect price hikes in late Mar-26/early Apr-26 to mitigate the impact of rising petcoke prices and packaging costs," the report noted.

It added that cement companies had implemented price hikes in the non-trade segment across regions in early February 2026, but these were rolled back in some regions by late February 2026. Prices have remained broadly stable so far in March 2026.

Despite the recent softness, the report maintained that the demand outlook remains positive.

"Despite some softness in Mar-26, we expect demand to be healthy in Q4FY26E. We are positive on the cement space in view of the likely price hikes," it said.

The report further noted that the stock performance of cement companies is likely to be influenced by the trajectory of cement prices and petcoke prices going forward.

On the macro front, government capital expenditure trends showed some moderation. Overall government capex, including central, state, and CPSE spending, declined 24 per cent year-on-year to around Rs 2 trillion in January 2026.

However, cumulative capex for the period April 2025 to January 2026 stood at approximately Rs 20 trillion, registering an increase of 8 per cent year-on-year.

The report also pointed to weakness in the real estate sector, which has been impacting cement demand trends. Real estate volumes remained sluggish, with launches in volume terms falling 44 per cent year-on-year in January 2026, following declines of 4 per cent and 7 per cent year-on-year in calendar years 2024 and 2025, respectively.

Overall, the report maintained a positive stance on the cement sector, supported by expectations of price hikes and steady demand in the coming months.

- ANI

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Reader Comments

P
Priya S
This will have a ripple effect. If cement prices go up, the cost of all infrastructure projects, housing, and even rent will be impacted. The government needs to look at stabilizing these input costs, maybe through strategic reserves or alternative materials.
A
Aman W
The report mentions the weakness in real estate. That's the real concern. If property launches are down so much, where is the demand for cement coming from? Companies might be trying to raise prices to protect margins even if volume growth is slow.
S
Sarah B
As someone working in construction, we see this cycle every year. Prices go up before the financial year ends. It's a tough balance for companies with crude costs rising. Hopefully, the demand from government infra projects picks up to offset the real estate slowdown.
V
Vikram M
Positive demand outlook is good for the economy and jobs. But these frequent price rollbacks and hikes create uncertainty for everyone - from the big builder to the person building a small home. Need more price stability.
K
Karthik V
With the cumulative govt capex still up 8% YoY, there is underlying support. The focus should be on accelerating project execution. Faster completion of roads, railways will absorb cement supply and maybe prevent extreme price volatility. Jai Hind!

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