India’s leading cement manufacturers have reported strong volume growth in the fourth quarter of FY25, driven by infrastructure projects, rural recovery, and real estate expansion. Industry leaders, including UltraTech, Ambuja Cements, ACC, Shree Cements, and Dalmia Bharat, anticipate sustained momentum in FY26, projecting 6.5–7.5% demand growth.
Q4 Performance and Industry Trends
Cement makers recorded volume gains ranging from 3.5% to 10%, with enhanced capacity utilization compared to the previous year. However, lower sales realization remained a challenge, despite cheaper input costs for coal, petcoke, and diesel.
The all-India average cement price stood at ₹350 per 50 kg bag in March 2025, reflecting a 7% year-on-year decline from ₹340 per bag in FY25. Analysts expect operating margins to improve in FY26, supported by stable input costs and a marginal price hike.
Key Players and Expansion Plans
- UltraTech Cement reported 41.02 million tonnes (MT) in Q4 sales, achieving a record 135.83 MT for FY25, aided by acquisitions and expansions.
- Ambuja Cements, India’s second-largest cement producer, posted 18.7 MT in Q4 sales, marking its highest-ever quarterly volume. The company aims to expand its capacity to 118 MTPA by FY26.
- Shree Cement recorded 9.84 MT in Q4 sales, its highest quarterly volume, despite a 14.9% decline in net profit. The company expects premium segment growth to continue in FY26.
- Dalmia Bharat saw a 2.8% increase in sales volume, reaching 8.6 MT, with further expansion plans in the pipeline.
Industry Outlook and Challenges
While cement makers remain optimistic about FY26, they are cautious about geopolitical tensions and trade barriers that could impact demand. The industry is witnessing consolidation, with large players acquiring smaller firms to drive inorganic growth.
With government spending on infrastructure and rural recovery initiatives, the cement sector is poised for steady expansion, reinforcing its role as a key driver of India’s economic growth.
