Cement prices to go up with 7-8% expected revival in volume growth in H2 FY26: Report
Cement prices in the country are expected to see a strong revival in the second half of FY26, with volumes likely to register a growth of 7 to 8 per cent, according to a report by Systematix Research.
ANI
Aug 12, 2025 14:50 IST
New Delhi [India], August 12 (ANI): Cement prices in the country are expected to see a strong revival in the second half of FY26, with volumes likely to register a growth of 7 to 8 per cent, according to a report by Systematix Research.
The report said that despite the near-term seasonal slowdown, the cement sector is set for a recovery in the latter half of the year. This will be driven by strong demand from infrastructure projects and urban housing, lower input costs, and a growing focus on green power.
It stated, "As most of the consolidation is over, we foresee a strong revival in prices and a 7-8 per cent volume growth for H2FY26".
The report mentioned that in August 2025, cement prices remained flat compared to the previous month but were stronger on a year-on-year basis.
The monsoon season slowed down construction activity, particularly in rural areas and infrastructure projects, leading to weaker offtake and limiting companies' ability to raise or sustain prices.
Region-wise, demand in the eastern market fell sharply due to early rains, though prices remained steady at Rs 353 per bag. In the southern region, prices increased by Rs 10 per bag despite the monsoon.
However, a correction of Rs 5-10 per bag is anticipated in the next quarter. In the central region, prices dipped by Rs 5 per bag, while in the northern region, prices stayed unchanged at Rs 365 per bag.
On an all-India basis, cement prices rose 1.2 per cent month-on-month in August 2025 to Rs 360 per bag.
The report also noted that the channel checks suggest that although demand weakened due to the monsoon, the situation is still better than the same period last year.
Cement volumes for major companies grew by 9.6 per cent, supported by a low base from last year's election period, an upswing in commercial activity, and a ramp-up in government project execution.
Most companies posted double-digit volume growth on the back of this demand rebound.
The report outlined that with seasonal challenges likely to ease in the coming months, the industry is set to witness healthier demand, improved prices, and steady volume growth in the second half of the fiscal year. (ANI)
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