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Key Points

India's cement sector saw a 9% YoY growth in May, hitting 39.6 million MT. ICRA forecasts further growth of 6-7% in FY2026, driven by strong housing and infrastructure demand. Cement prices rose 8% YoY, reaching Rs 360 per bag, while margins are expected to improve. The sector remains stable, supporting India's economic expansion.

Key Points: Indian Cement Sector Hits 39.6 Million MT in May with 9% Growth

  • Cement production rises 9% YoY in May 2025
  • FY26 volumes projected at 480-485 million MT
  • Prices up 8% YoY to Rs 360 per bag
  • Operating margins may improve by 80-150 bps
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Indian cement sector reaches 39.6 million metric tonnes in May, up 9 pc

India's cement production surges 9% YoY in May 2025, reaching 39.6 million MT, driven by housing and infrastructure demand.

"ICRA projects 6-7% growth in FY2026, with volumes expected at 480-485 million MT. – ICRA Report"

New Delhi, June 29

The Indian cement sector reached 39.6 million metric tonnes (MT) in May, recorded a strong 9 per cent year-on-year (YoY) growth in volumes, according to a new report.

The positive trend continued in the first two months of FY26, with volumes rising 8 per cent YoY to 78.7 million MT, according to the report by ICRA.

For FY2025, cement volumes grew by 6.3 per cent YoY, totalling 453.0 million MT.

ICRA projects a further 6-7 per cent growth in FY2026, with volumes expected to reach 480-485 million MT, driven by sustained demand from the housing and infrastructure sectors.

Average cement prices saw an 8 per cent YoY increase in May 2025, reaching Rs 360 per bag, while prices for the first two months of FY2026 were up 7 per cent YoY.

ICRA anticipates an 80-150 basis points (bps) improvement in operating margins for its sample set of cement companies, rising to 16.3-17.0 per cent in FY2026.

The rating agency maintains a ‘Stable’ outlook for the Indian cement sector, reflecting confidence in continued demand and favourable cost conditions. The sector’s resilience underscores its critical role in supporting India’s infrastructure and housing development.

The combined Index of Eight Core Industries (ICI) increased by 0.7 per cent in May compared to the same month last year, according to the Ministry of Commerce and Industry data. The production of cement, steel, coal, and refinery products recorded positive growth last month.

The final growth rate of the Index of Eight Core Industries for February, March and April was observed at 3.4, 4.5 and 1.0 per cent, respectively, said the ministry.

Cement production rose by 9.2 per cent in May. Its cumulative index increased by 7.8 per cent during April to May, 2025-26 over the corresponding period of the previous year.

—IANS

- IANS

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Reader Comments

S
Shreya B
As someone working in construction, I'm seeing this growth first-hand. But quality control needs equal attention - some new projects are using substandard cement to cut costs. Govt should strengthen BIS standards enforcement along with celebrating these numbers.
R
Rohit P
Rs 360 per bag is too expensive for rural areas! While cities benefit from infrastructure boom, villagers are struggling to afford basic construction materials. Govt should consider regional pricing policies to ensure balanced development across India.
P
Priya S
This growth is impressive but are we considering environmental impact? Cement production is highly polluting. Hope companies are investing in green technologies too. Sustainable development should be the focus, not just numbers.
D
David E
Interesting to see India's cement sector outperforming global trends. The housing demand is clearly driving this - with so many young people entering the workforce and needing homes. Smart investors should watch this space carefully.
K
Karthik V
Good numbers but what about worker safety? In my state, several cement factory accidents went unreported last year. Growth should not come at the cost of laborers' lives. Need stricter implementation of factory safety norms.

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