The cement industry is showing signs of recovery after a sluggish H1 owing to adverse monsoons, delays in infrastructure fund allocations, and seasonality. Cement demand has begun picking pace in Q3 as cement prices inch up after months of lull, driven by pent-up demand. Overall, DRChoksey expects volume growth for companies under its coverage to be in the range of 8-9%, supported by a rebound in both trade and non-trade segments. Rural demand has also seen gradual improvement, aided by better agricultural output and an increase in construction activity.
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Systematix Report
Cement demand in India is expected to witness a robust uptrend, supported by a strong macroeconomic backdrop and sustained government focus on infrastructure.
Sector leader UltraTech Cement projects demand to exceed 640 million tonnes per annum by FY30, implying a CAGR of 7–8% from FY24 levels of ~430 mtpa.
In the near term, FY25 demand growth is estimated at ~7–8% YoY, led by a revival in housing and infrastructure segments. The government has maintained its capex which is expected to catalyze construction activity and drive cement offtake.
Additionally, early signs of revival are visible with April 2025 witnessing renewed demand momentum across East, North, and South India, supported by improved liquidity in the system and resumption of stalled projects. This demand resurgence is likely to provide strong volume tailwinds heading into H1 FY26.
UltraTech and Ambuja Cement remain our top picks within the coverage universe.
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