Cement production volumes increased by 9.8% year-on-year (YoY) in June 2026 to 44.8 million metric tonnes (MT) and by 8.8% in Q1 FY2027 to 130.2 million MT. In FY2026, volumes were 8.6% higher than FY2025. ICRA expects cement volume growth to moderate to 6-7% in FY2027 as it remains exposed to the downside risks with GDP growth anticipated to be softer than the earlier estimates. Average cement prices decreased by ~1% in June 2026 to Rs. 345/bag on a month-on-month (MoM) basis. In Q1 FY2027, average prices increased by ~4% quarter-on-quarter (QoQ) to ~Rs. 350/bag, however, it remained ~2% lower than Q1 FY2026. In FY2026, prices increased by 2% to Rs. 345/bag YoY.

Exhibit: Monthly trend in cement production volumes

Source: Office of Economic Advisor, Index of Core Industries