Cement
volumes are expected to grow by 6-7% in FY2027, driven by sustained demand from
housing and infrastructure sectors. The operating margins are likely to
slightly moderate by around 100 bps in FY2027 on account of increase in raw
material costs.
Cement
volumes: In 8M
FY2026, the cement volumes are higher by 8.5% YoY backed by sustained demand
from the housing and infrastructure sectors. ICRA expects cement volume to grow
by 6.5-7.5% to 482-486 million MT in FY2026 and 6-7% in FY2027, given continued
steady demand from end user industries.
Supply
addition: The
capacity addition may increase by 43-45 million MTPA1 in FY2026 and 42-44
million MTPA in FY2027, driven by healthy demand prospects. In FY2027, the
eastern region is likely to lead the grinding capacity expansion with the
addition of 15-17-million MTPA capacity. In FY2027, the capacity utilisation is
likely to moderate at 70-71% on an expanded base.
