India’s cement producers are expected to report revenue growth in the third quarter of FY25-26, supported by strong demand momentum, according to a new report by investment consultants Axis Direct.
The brokerage estimates that cement demand across its coverage universe will grow by 11 per cent YoY in 3QFY25-26, driven by higher infrastructure activity and continued demand from the affordable housing segment. Axis Direct said robust volume growth is likely to persist during the quarter, underpinned by government-led infrastructure spending and steady housing demand.
The report noted that rural demand is expected to outperform urban markets, supported by above-average monsoon conditions and stable wage growth. Infrastructure investment is forecast to remain a key stabilising factor for overall cement volumes.
Looking beyond the quarter, Axis Direct expects cement demand to increase by 7–8 per cent in FY25-26, reflecting the government’s ongoing capital expenditure push. While pricing is likely to remain competitive due to incremental capacity additions and heightened competition, manufacturers are expected to benefit from sustained volume growth.
The report added that non-trade demand accelerated during the quarter, partly due to improved affordability following a Goods and Services Tax (GST) rate cut, supporting higher cement offtake in price-sensitive segments.
