India’s leading cement manufacturers are expecting a stronger performance in the second half of the fiscal year 2026, driven by high single-digit volume growth, firm sales realization, and improving demand from the housing and infrastructure sectors. In the second quarter, companies such as UltraTech, Ambuja Cements, Shree Cement, Dalmia Bharat, and Nuvoco Vistas posted revenue growth of up to 18%, driven by premiumization, benign input costs, and steady pricing.
The decline in coal prices and stable diesel rates also contributed to the growth. Companies are optimistic about demand in the second half, particularly from the individual home builders segment across rural and urban markets. A good monsoon, tax incentives, and GST reforms are expected to support rural construction activity. UltraTech, which reported 13% growth in rural markets, expects the individual home builders segment to remain a major demand driver.
The company also sees improving urban demand due to changes in GST rates, personal income tax tweaks, and softer interest rates. The all-India average cement price increased 2% year-on-year in September 2025 to Rs 341 per 50-kg bag. ICRA expects cement volumes to grow 6-7% year-on-year to 480-485 million tonnes in FY26, supported by sustained demand from housing and infrastructure.
Ambuja Cements CEO Vinod Bahety said the sector will benefit from favorable policy initiatives, including GST 2.0 reforms, despite monsoon-related headwinds. He expects cement demand to remain “bullish”, projecting industry growth of 7-8% for the year, backed by improved economic sentiment and strong public and private investments. Other companies, such as Shree Cement and Dalmia Bharat, also reported strong growth and are optimistic about the future.
Overall, the cement industry in India is expected to perform well in the second half of the fiscal year, driven by improving demand and favorable market conditions. The companies are expecting a strong recovery in the second half, driven by better customer sentiment, pent-up demand, and successive good monsoons. The RBI’s move to potentially permit ECBs for the real estate sector could also bolster medium- to long-term cement demand.