India’s cement industry is poised for a significant rebound in fiscal year 2026 (FY26), with sector-wide profit expected to grow by over 63 per cent year-on-year, according to a report by Dolat Capital. The surge is driven primarily by a favourable low base from the previous year and ongoing cost-reduction efforts across companies.
The brokerage noted the recovery is likely to be volume-led, supported by robust demand, better operational efficiencies and growing focus on premium and trade channel sales, which carry higher margins. Cost savings from lower logistics, improved fuel efficiency and optimised plant operations are also contributing.
However, pricing growth remains muted, and the report highlighted a key risk: more than 175Mta of capacity additions scheduled for FY26–28, which could weigh on realisations.
In the current scenario, volume growth, tight cost control and increasing premium product share will be the main levers determining profitability, the report suggested. While infrastructure spend and rural housing demand are expected to support growth, margins will remain vulnerable if price hikes fail to materialise. Companies are thus emphasising efficiency gains and premiumisation to capture the upswing.
