Average cement prices decreased by 1% YoY in November 2025 to Rs. 330/bag. In 8M FY2026, the prices were up 5% YoY at Rs. 350/bag. In FY2025, cement prices declined by 7% YoY to Rs. 340/bag.

The operating margins for ICRA’s sample set of companies are likely to increase to 16.5-17.5% in FY2026. The same is expected to moderate by 100-200 bps in FY2027 on account of increased input costs. ICRA maintains a Stable outlook on the Indian cement sector.

Exhibit 1: Monthly trend in cement volumes

Source: Office of Economic Advisor, Index of Core Industries