Has the Indian Cement Sector Achieved 39.6 Million Metric Tonnes in May with a 9% Growth?
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Synopsis
In May, the Indian cement sector reached a significant milestone of 39.6 million metric tonnes, demonstrating a strong 9% year-on-year growth. This report highlights the continuous rise in demand driven by infrastructure and housing sectors as ICRA foresees a promising outlook for the industry.
Key Takeaways
- Indian cement production reached 39.6 million MT in May.
- Year-on-year growth of 9% was recorded.
- ICRA forecasts a growth of 6-7% for FY2026.
- Average cement prices rose by 8% in May.
- Positive outlook reflects confidence in ongoing demand.
New Delhi, June 29 (NationPress) The Indian cement industry has achieved a remarkable milestone, reaching 39.6 million metric tonnes (MT) in May, marking a robust 9 percent year-on-year (YoY) increase in production, as revealed in a recent report.
This positive momentum has persisted into the first two months of FY26, with an 8 percent YoY rise in volumes, totaling 78.7 million MT, according to findings from ICRA.
For the fiscal year 2025, cement production exhibited a growth of 6.3 percent YoY, accumulating to 453.0 million MT.
Looking ahead, ICRA forecasts an additional growth of 6-7 percent in FY2026, projecting volumes to reach 480-485 million MT, spurred by continuous demand from the housing and infrastructure sectors.
Average cement prices saw an increase of 8 percent YoY in May 2025, reaching Rs 360 per bag, with prices in the initial two months of FY2026 rising by 7 percent YoY.
ICRA also anticipates an improvement of 80-150 basis points in operating margins for its selected cement companies, expected to rise to 16.3-17.0 percent in FY2026.
The agency maintains a 'Stable' outlook for the Indian cement sector, reflecting confidence in ongoing demand and favorable cost conditions. The sector's resilience highlights its vital role in bolstering India's infrastructure and housing development.
The combined Index of Eight Core Industries (ICI) recorded a 0.7 percent increase in May compared to the same month last year, according to data from the Ministry of Commerce and Industry. The production of cement, steel, coal, and refinery products showed positive growth last month.
The final growth rate of the Index for February, March, and April was noted at 3.4, 4.5, and 1.0 percent, respectively, as stated by the ministry.
Cement production surged by 9.2 percent in May, with the cumulative index rising by 7.8 percent from April to May 2025-26 compared to the corresponding period of the last year.
Point of View
It is evident that the Indian cement sector plays a pivotal role in the nation’s economic landscape. The consistent growth in cement production not only reflects resilience but also underscores the importance of infrastructure development in India. The positive outlook by ICRA reinforces confidence in the sector’s capability to meet rising demands and support national growth.
NationPress
29/06/2025
Frequently Asked Questions
What is the growth percentage of the Indian cement sector in May?
The Indian cement sector recorded a remarkable 9% year-on-year growth in May.
What are the projected cement volumes for FY2026?
ICRA projects cement volumes to reach between 480 to 485 million metric tonnes in FY2026.
How much did cement prices increase in May 2025?
Average cement prices increased by 8% year-on-year, reaching Rs 360 per bag in May 2025.
What is the outlook for the Indian cement sector according to ICRA?
ICRA maintains a 'Stable' outlook for the Indian cement sector, indicating confidence in sustained demand.
What factors are driving the growth in the cement sector?
The growth is primarily driven by sustained demand from the housing and infrastructure sectors.
