The operating margins for ICRA’s sample set of cement companies
are likely to improve by 90-180 bps to 16.5-17.5% in FY2026, on account of an expected
hike in cement prices and range-bound input costs.
Outlook: ICRA maintains a Stable outlook on the
Indian cement sector
Cement volumes increased by 5.3% YoY in October 2025 to
37.7 million metric tonnes (MT). In 7M FY2026, the volumes increased by 7.6%
YoY to 266.7 million MT. ICRA expects cement volumes to grow by 6-7% YoY to
480-485 million MT in FY2026, backed by sustained demand from the housing and
infrastructure sectors.
