The Indian cement industry has shown positive growth in the July-September quarter, with top companies such as UltraTech, Ambuja Cement, Shree Cement, Dalmia Bharat, and Nuvoco Vistas reporting up to 18% growth in revenue from operations. The all-India average cement price increased by 2% year-over-year (YoY) in September 2025 to ₹341 per 50-kg bag. The industry’s growth is expected to be driven by the housing sector, particularly in rural areas, due to factors such as a good monsoon and recent tax incentives and GST reforms.
UltraTech, the largest cement company in India, reported a 13% growth in rural markets and expects the individual home builders (IHB) segment to continue driving demand. The company’s Managing Director, Kailash C Jhanwar, stated that the housing sector would be the key driver for growth, with rural housing demand expected to do well due to a good monsoon and revision in the Minimum Support Price (MSP) for crops.
The cement industry is also expecting a boost from the government’s spending on key infrastructure projects. The recent RBI move to potentially allow extra commercial borrowings (ECBs) for the real estate sector could further support cement demand from the housing sector in the medium to long term.
In terms of costs, coal prices declined by 17% YoY in October 2025, while petcoke prices increased by 18% YoY. Diesel prices remained stable on a YoY basis. The industry is expecting cement volumes to grow by 6-7% YoY to 480-485 million metric tons in FY2026, backed by sustained demand from the housing and infrastructure sectors.
Other cement companies, such as Ambuja Cements, Shree Cement, Dalmia Bharat, and Nuvoco Vistas, also reported positive growth in the July-September quarter. Ambuja Cements reported the highest ever sales volume in Q2, up 20% on a YoY basis, while Shree Cement reported a 6.8% increase in sales volume. Dalmia Bharat and Nuvoco Vistas also reported growth in revenue from operations, with Dalmia Bharat’s revenue up 10.68% and Nuvoco Vistas’ revenue up 17.43%.
Overall, the Indian cement industry is expecting a strong second half of the fiscal year, driven by growth in the housing sector and government spending on infrastructure projects. The industry is also expecting a boost from the recent RBI move to allow ECBs for the real estate sector, which could further support cement demand from the housing sector.