The Indian cement industry has reported a volume growth of 3.5-10% in the March 2025 quarter, driven by government infrastructure spending and rural recovery. Leading cement companies such as UltraTech Cement, Ambuja Cements, and ACC have seen significant growth, with UltraTech’s consolidated sales volumes reaching 41.02 million tonnes in the quarter. Despite challenges with lower year-on-year sales realization, the industry is expected to achieve an overall growth of 6.5-7.5% in FY26, with expectations of improvement in operating margins due to stable input costs and a potential hike in cement prices.
Shree Cement, the third-largest cement group by capacity, recorded its highest quarterly sales volume of 9.84 million tonnes in the March quarter, while Dalmia Bharat reported a 2.8% increase in sales volume despite a decline in revenue due to softening prices. The all-India average cement price was around ₹350 per 50 kg bag in March 2025, with overall cement prices declining by 7% year-on-year to ₹340/bag in FY25.
The industry is witnessing consolidation, with large players acquiring smaller companies to drive growth. UltraTech’s CFO, Atul Daga, stated that the company believes cement demand overall for the country would have grown around 4% in the quarter, with UltraTech achieving close to 10% volume growth. Ambuja Cements reported a consolidated sales of 18.7 million tonnes in the March quarter, its highest ever volume in a quarter, and aims to reach 118 MTPA capacity by the end of FY26.
The industry expects the cement demand to achieve 6.5-7.5% demand growth in FY26, fueled by infrastructure projects, rural recovery, and real estate momentum. However, external challenges such as geopolitical conflicts and trade barriers by key economies are expected to persist. The cement industry ended FY25 with a capacity of about 655 MT, up from 625 MT a year ago. Overall, the industry is expected to see improved operating margins in FY26, driven by stable input costs and a potential hike in cement prices.