In FY2026, cement volumes grew by 8.6% YoY, backed by demand from the housing and infrastructure sectors. In 5M FY2027, volumes increased by ~10.3% YoY to ~212.1 million MT. ICRA expects cement volume growth to moderate to 6-7% in FY2027, from a relatively higher base , especially in H2 FY2026. While a below-normal monsoon and El Nino conditions could weigh on rural incomes, overall growth will remain dependent on infrastructure spending and housing activity.

• Supply addition: Cement capacity is expected to increase by 30-34 million MTPA in FY2027, followed by addition of ~43 million MTPA1 in FY2026. The capacity utilisation is expected to remain at 70-71%, broadly in line with ~70% levels seen in FY2026.
• Net sales realisations (NSR) and input costs: NSR increased by ~2% YoY in Q1 FY2027 and are expected to rise by ~3-5% during FY2027. This follows a ~7% YoY increase in FY2026.