India’s cement sector recorded a robust 9% year-on-year (YoY) growth in May 2025, reaching 39.6 million metric tonnes (MT), according to ICRA.

The positive trend continued in the first two months of FY26, with cumulative volumes rising 8% YoY to 78.7 million MT. FY2025 ended with a 6.3% growth, totaling 453.0 million MT. ICRA projects volumes to further rise to 480–485 million MT in FY26, backed by sustained housing and infrastructure demand. Cement prices increased by 8% YoY in May, averaging ₹360 per bag. Operating margins are expected to improve by 80–150 basis points, reaching 16.3–17.0% in FY26. The sector’s outlook remains “Stable” as per ICRA. Supporting data from the Ministry of Commerce and Industry shows cement production rose 9.2% in May, contributing to the 0.7% rise in the Index of Eight Core Industries (ICI). Cement’s cumulative index grew 7.8% during April–May 2025–26, highlighting its role in India’s infrastructure momentum.