JM Financial reported that due to the impact of non-trade areas, the price of all-cement in India fell by about 2-2.5 percentage points to 334 rupees per bag in December 2025, and is expected to rebound substantially from April 2026. In December 2025, industry demand achieved low double-digit year-on-year growth, and is expected to grow in high single digits in the third quarter of this fiscal year.
Although companies have announced a price hike of Rs 10 to Rs 40 per bag in January 2026 in various regions, the extent of absorption is likely to be limited. While signs of recovery are slowly emerging, demand remains weak, with areas such as Delhi's NCR facing construction difficulties due to air pollution. Input costs are likely to fall by Rs 50 per tonne in the quarter ended. According to the report, any rebound in cement prices will become a key monitoring indicator in the future.
The Icra report showed that cement sales in the first eight months of the fiscal year rose 8.5% year-on-year to 305.7 million tons and 14.5% to 39 million tons in November, thanks to robust demand. Cement sales are expected to grow by 6 to 7% in fiscal year 2027 and 6.5 to 7.5% in fiscal year 2026, supporting continued demand from the real estate and infrastructure sectors.
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