{"id":87707,"date":"2025-12-30T18:36:32","date_gmt":"2025-12-30T13:06:32","guid":{"rendered":"https:\/\/urbanacres.in\/?p=87707"},"modified":"2025-12-30T18:36:32","modified_gmt":"2025-12-30T13:06:32","slug":"india-cement-industry-forecast-to-grow-6-7-per-cent-in-fy27","status":"publish","type":"post","link":"https:\/\/livzzy.in\/?p=87707","title":{"rendered":"India Cement Industry Forecast To Grow 6\u20137 Per Cent In FY27"},"content":{"rendered":"

India\u2019s cement industry is projected to record volume growth of 6\u20137 per cent in FY27, supported by sustained housing demand and continued government spending on infrastructure, even as producers expand capacity aggressively. Industry utilisation is expected to remain stable at around 70\u201371 per cent on a larger capacity base, indicating steady construction momentum and a balanced demand\u2013supply outlook.<\/strong><\/h3>\n

The growth forecast follows an expected expansion of 6.5\u20137.5 per cent in FY26, despite a high base in the latter half of FY25. Cement demand has remained firm through the current financial year, with volumes rising sharply during the first eight months, reflecting strong activity across residential construction, roads, and urban infrastructure projects. Analysts expect demand to improve sequentially in the second half of FY26 as post-monsoon construction accelerates and delayed projects resume across cities and growth corridors.<\/span>Large cement manufacturers are responding to this demand outlook with significant capacity additions, undertaken through both organic expansion and acquisitions. The industry is expected to add more than 40 million tonnes per annum of fresh capacity in FY27, following similarly high additions in FY26. Despite this rapid expansion, overall utilisation levels are forecast to remain broadly unchanged, highlighting the depth of underlying demand from India\u2019s ongoing urbanisation and infrastructure pipeline.<\/span><\/h4>\n

Regional trends continue to shape industry dynamics. Northern and central markets are expected to operate above the national utilisation average, supported by strong infrastructure spending and steady housing development. In contrast, southern India is likely to see lower utilisation levels due to surplus capacity, intensifying competition and keeping pricing discipline tight in that region.<\/span>Pricing conditions are gradually improving after a weak phase in FY25, when subdued construction activity weighed on realisations. Average cement prices are expected to rise modestly in FY27, following firmer increases in FY26, aided by better demand visibility across most regions. Industry observers note that blended realisations have already strengthened year-on-year in several markets, reflecting improved demand-supply balance.<\/span>However, cost pressures are expected to moderate profitability gains in FY27. Input costs such as fuel and freight remain linked to global crude prices and are exposed to geopolitical and commodity market volatility. While operating profitability improved in FY26 due to higher volumes and pricing, margins may soften slightly in FY27 as cost inflation sets in.<\/span><\/h4>\n

Overall, the India cement industry outlook remains stable, anchored in housing-led urban growth and sustained infrastructure investment. As cities expand and public works gather pace, the sector\u2019s performance will increasingly depend on operational efficiency, regional balance, and gradual alignment with lower-carbon construction practices essential for sustainable urban development.<\/span><\/h4>\n

Also Read:\u00a0Hyderabad Announces 160 Kmph Rail Upgrade Cutting Travel Time Below Three Hours<\/a><\/strong><\/h4>\n
India Cement Industry Forecast To Grow 6\u20137 Per Cent In FY27<\/h5>\n","protected":false},"excerpt":{"rendered":"

India\u2019s cement industry is projected to record volume growth of 6\u20137 per cent in FY27, supported by sustained housing demand and continued government spending on<\/p>\n","protected":false},"author":1,"featured_media":84019,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[146,147,148],"tags":[18076,11615,32648,35117,14187,34105,32254,367,30510,204,333],"class_list":["post-87707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-news","category-urban-news","tag-building-materials","tag-capacity-expansion","tag-construction-sector","tag-fy27-outlook","tag-green-construction","tag-housing-demand-india","tag-india-cement-industry","tag-infrastructure-growth","tag-real-estate-india","tag-sustainable-cities","tag-urban-development"],"_links":{"self":[{"href":"https:\/\/livzzy.in\/index.php?rest_route=\/wp\/v2\/posts\/87707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/livzzy.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/livzzy.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/livzzy.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/livzzy.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=87707"}],"version-history":[{"count":0,"href":"https:\/\/livzzy.in\/index.php?rest_route=\/wp\/v2\/posts\/87707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/livzzy.in\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/livzzy.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/livzzy.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/livzzy.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}