Cement demand to grow 6-7.5% in FY26 amid recovery in infrastructure and housing: Report
New Delhi [India], June 3 (ANI): The Indian cement industry is likely to see a demand growth of 6 to 7.5 per cent in the current financial year (FY26), according to a report by Systematix Research.
The report highlighted that with consolidation-led discipline taking hold and strong momentum in infrastructure and housing sectors, the industry is entering a more stable and profitable phase.
It said, "With consolidation-led discipline settling in and momentum building in infrastructure and housing, industry demand is expected to grow by 6-7.5 per cent in FY26".
The report noted that the sector exited FY25 on a stronger footing. The last quarter of the previous financial year saw a visible recovery in both demand and pricing after a slow first half. Increased government capital expenditure towards the end of FY25 helped revive construction activity in major markets.
The report said "Cement volume for companies under our coverage grew by 11 per cent after a slow H1 due to an upswing in commercial activity and a ramp-up in government execution. In FY25, the cement industry ended with a capacity of about 655 MTPA ( 4.8 per cent YoY).
This also supported price hikes, which were partially absorbed in regions like the East and North.
In May 2025, the report added that the cement companies attempted price hikes across different regions, ranging from ₹ 5 to ₹ 10 per bag.
However, due to weak demand in several areas, the absorption of these hikes remained limited. Regional factors such as early monsoons and heat waves played a key role in affecting demand.
In the East, demand dropped sharply due to early monsoons, but prices still rose by ₹ 46 per bag. The South faced flat demand conditions as heat waves impacted construction activities.
As a result, price hikes in the region are expected to be postponed to the second quarter of FY26, since the fourth quarter remained muted.
Meanwhile, the report mentioned that central India recorded a modest hike of ₹ 2 per bag, and Northern markets saw better traction, with prices increasing by ₹ 20-30 per bag.
Despite these regional challenges, the average cement price across India rose 1.6 per cent month-on-month in May 2025, reaching ₹ 367 per bag.
The industry also benefited from a favourable cost environment and improving capacity utilisation, further supporting a positive outlook for FY26. (ANI)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Gazette
24 minutes ago
- India Gazette
India's agrochemical exports set for moderate rebound in FY25: Rubix report
New Delhi [India], June 22 (ANI): India's agrochemical exports are expected to moderately rebound in the Financial Year 2025, with improving demand and inventory normalisation, according to an industry report by Rubix, which analyses industry data and trends. India's agrochemical exports declined sharply in FY2024, by nearly 22 per cent compared to the previous year, primarily due to global inventory destocking, heightened price competition from China, and subdued demand in key export markets. The report says that distributors worldwide reduced procurement to manage excess stock amid falling prices. At the same time, Chinese suppliers re-entered the market with aggressively priced products, making Indian exports less competitive. Additionally, erratic weather patterns impacted agricultural activity in importing countries, further dampening demand. However, exports are expected to recover in the coming years as global inventories stabilise, demand picks up with improved agricultural cycles, and Indian manufacturers adapt with cost-efficient production and diversified portfolios. As a result, the trade surplus (difference between exports and imports) came down from USD 3.6 billion in FY2023 and USD 2.8 billion in FY2024 to USD 2.3 billion in FY2025 (April 2024- February 2025). Highlighting the factors that support exports, the report added that herbicides have emerged as the leading export segment, experiencing the fastest growth at 20 per cent CAGR from FY2020 to FY2025. The share of herbicides in total agrochemical exports increased from 31 per cent to 37 per cent during the same timeframe. As per the report, this growth is driven by India's cost-effective manufacturing, rising global demand for affordable herbicides, and the increasing scarcity and cost of agricultural labour, making herbicide-based weed control a more viable choice for farmers. The export landscape reveals a growing concentration in key markets, as the top five export destinations account for more than 50 per cent share for insecticides and fungicides and nearly 71 per cent for herbicides. Notably, the US and Brazil have maintained their positions as the top export destinations for insecticides and fungicides over the past five years. However, in FY2025, Japan displaced Brazil as the second-largest export destination for herbicides. (ANI)
India Gazette
24 minutes ago
- India Gazette
K'taka Minister Priyank Kharge questions MEA's
Bengaluru (Karnataka) [India], June 22 (ANI): Karnataka Minister Priyank Kharge questioned the Centre on Sunday for its 'U-turn' on its decision to grant him approval to visit the United States, claiming that the delay in approval has led to loss of investment opportunities for the state. Kharge alleged that the MEA's decision is politics being played by Opposition-ruled states. 'This question should be asked to the MEA. Why did they deny the delegation led by me, and why are they allowing it now? What was wrong then and what is right now?...We were supposed to be there from 13th June, and it is 21st already. Do you think World Expos and World Trade exhibitions will wait for us?' Kharge told ANI. The state minister said that Karnataka is 'one of the biggest economic growth engines' for the country, making it important to seek investments too. He alleged that while certain southern states are driving the GDP of the country, they are also facing problems. 'The politics being played is also to be explained by the MEA not by me. (This is) denying us the right to seek investments and create jobs, we are one of the biggest economic growth engines for the country... if we don't get to go abroad and seek investments, have you seen UP or Bihar CM going to get investment? It is always Karnataka, Telangana, Tamil Nadu - we are the ones who are driving 50% of the GDP of the country and you (central Govt) doing such things is of no use to anybody,' the state minister said. On Saturday, the Congress leader had posted on X demanding an explanation for denying him permission to visit US and represent Karnataka in various global forums and official meetings. He said that he had submitted his request for travelling to US from June 14 since May 15, but was rejected without an explanation. His post read, 'So in a U-turn, the Ministry of External Affairs has now decided to revoke its earlier decision and grant me a clearance for an official visit to the United States. I had sought permission on 15 May to travel between 14-27 June to represent the Government of Karnataka at two major global forums and over 25 official meetings with top companies, universities and institutions for collaborations and pitch for application was denied without any official explanation.' He explained that the application for the minister and his delegation was submitted on May 15, which was later rejected on June 4. Kharge added that an application for the officer delegation without the minister was submitted on June 6, and it got clearance on June 11. (ANI)
Time of India
33 minutes ago
- Time of India
Indian aviation ecosystem under the lens: DGCA orders 'comprehensive special audit'
DGCA NEW DELHI: Jolted by the tragic crashes of Air India flight 171 and multiple helicopters in Uttrakhand within the last one month, the Directorate General of Civil Aviation (DGCA) has ordered a 'comprehensive special audit' of Indian aviation ecosystem. This covers scheduled, non-scheduled, and private airlines; maintenance, repair, and overhaul (MRO) organisations; approved training organisations (ATOs); flying schools; air navigation service provider; airport operators, and ground handling agencies (GHAs). The audit will focus on 'examining the safety management systems (SMS), operational practices, and regulatory adherence across all aviation domains.' It will also audit 'supporting elements such as technology providers, emergency response systems, supply chain networks, and regulatory coordination bodies.' Air safety expert Amit Singh said: 'DGCA has been auditing aviation since time immemorial. Wouldn't it be prudent to invite a third party to audit and why (have past) DGCA audits failed to reign in safety?' Same was the reaction of several others in the industry who have seen multiple audits, enhanced surveillances in the past. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025 Top Trending Local Enterprise Accounting Software [Click Here] Accounting ERP Click Here Undo Also, for several years, the frail financial health of many aviation ecosystem players — specially airlines — has been a key vulnerability and the resolution for this is beyond the DGCA's scope. 'Very often in the last 2-3 decades such weak players (many of who have now shut shop) have warned authorities they will shut down if forced to dot all Is and cross all Ts which will affect connectivity,' said industry insiders. "Hopefully the recent crashes will change things." The audit order issued by DGCA chief Faiz Ahmed Kidwai says: 'Traditionally, regulatory and safety oversight functions within Indian aviation have been conducted in silos, with different directorates performing inspections and audits specific to their respective domains. These activities include planned/unplanned surveillance inspections, random spot checks and ramp inspections, which primarily assess compliance and safety within individual aviation segments. ' 'In a significant paradigm shift, the comprehensive special audit is designed to transcend existing siloed assessments by evaluating the aviation ecosystem holistically…. The goal is to generate a 360-degree evaluation of the aviation ecosystem, reflecting both its strengths and areas needing improvement. These special audits will be over and above the regulatory audits carried out as per the annual surveillance programme,' Kidwai's order says. The special audits will be conducted by multidisciplinary teams led by a senior DGCA official (DDG/director) as the lead auditor, supported by specialists from flight standards, air safety, airworthiness, airspace & air navigation services, licensing, and aerodrome standards directorates. 'Whenever necessary, external experts from industry may be included to provide specialised insights. This diverse team composition ensures a comprehensive evaluation that leverages both regulatory expertise and industry-specific knowledge, fostering credible and actionable findings,' the order says. Once the audit is over, the findings will be shared with the audited entities. They, in turn, will need to submit a corrective action plan (CAP) within 15 days. 'DGCA will monitor CAP implementation through progress reviews and verification audits, ensuring effective resolution of findings…. Non-compliance with audit findings or failure to implement CAPs may result in progressive enforcement actions, including advisory guidance, formal warnings, operational restrictions, financial penalty, suspension, or revocation of licenses… Enforcement decisions will consider public safety, compliance history, and entity cooperation, ensuring fairness and proportionality/natural justice,' the order says.
