Cement Prices

While monsoons and consumption deferrals following the GST rationalisation impacted demand in Sep'25, prices largely held firm, signalling resilience in the sector, Nuvama analysts said

Elara Capital cautions that the near-term pricing environment remains weak, with operating leverage and higher costs likely to weigh on profitability in Q2FY26 and potentially spill over into Q3FY26.

The GST rationalisation will bring down the prices of cement by Rs 30-35 per 50 kg bag and lower the cost of construction, a report from India Ratings and Research (Ind-Ra) said. Last week, the GST Council decided to overhaul the current GST regime into a two-slab structure -- 5 per cent and 18 per cent. From September 22, cement will be taxed at 18 per cent, instead of 28 per cent now. The report said the revamp is a "structural positive" for the cement sector and could support demand in the affordable segment, which has been tepid in recent times. Ind-Ra believes companies will likely largely pass on this benefit by reducing selling prices which will help lower construction costs for infrastructure and housing projects. "With the rate cut likely to be passed on due to high competition, cement prices for consumers would soften while net realisations for cement companies may remain range bound," it said. However, Ind-Ra maintains its cement demand growth forecast at 5-7 percent ..

Cement prices have seen a sharp escalation in the current fiscal, following upward pressure from input fuel costs, particularly petroleum coke (petcoke), industry sources said. The all-India average cement price reached Rs 360 per 50-kg bag in May 2025, about 8 per cent higher year-on-year after a steep decline the previous year. While regional differences persist - with eastern India seeing the sharpest increases (Rs 20 a bag in West Bengal) and western markets rising by a modest Rs 3 - the trend across the country is clearly upward. May is the latest all-India data available. Sources said demand remains robust, growing 9 per cent in May to 39.6 tonnes, underpinned by housing and government-led infrastructure. Analysts forecast 6-7 per cent growth in FY2026 volumes to 480-485 tonnes. The strongest upward pressure is coming from fuel costs, particularly petroleum coke (petcoke), which constitutes over 50 per cent of the cement industry's fuel mix. In the spot market, international

Cement prices rose 6% YoY in Q1 FY26 while moderate volume growth and soft fuel costs are expected to aid profitability despite seasonal monsoon impact

Price rise mainly due to jump in cost of cement, steel, and skilled labour

After a weak start to FY25, Birla Corp posts strong Q4 profit growth on higher capacity utilisation and announces major expansion to scale cement output to 27.6 mt

Stock market today: Pan-Indian average cement prices have risen for three consecutive months. In February, prices increased by ₹3 per 50 kg bag (up 1% M-o-M and 2% Y-o-Y) to ₹374 per bag

With industry focus shifting to volume growth in the closing quarter of the year, the likelihood of substantial price hikes in the near-term remains low due to the continued high competitive pressure

Cement assets attracted both acquisitions and fresh financial investments worth over $3.5 bn

The renewed investor interest in the cement shares came on the back of reports that cement dealers have initiated price hikes since the start of December

The two will be organising webinars, roundtables, industry meetings, and thought leadership articles towards knowledge building for the sector

The price of cement is hardening across the country and since August this year, the rates have gone up by Rs 16/per bag, said Emkay Global Financial Services Ltd

On a month-on-month (MoM) basis, prices rose by 2-3% in the East and South, and about one per cent in the West; while declining 1-2% in the northern and central regions, the report said

Investors may consider companies with industry-leading growth and profitability

Shree Cement says will take a cut of Rs 5 per bag and other companies are expected to decide soon.

According to industry sources, coal and petcoke prices have increased sharply by 30-50 per cent in the last 6 months due to the Ukraine crisis.

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Share price of major companies are up 10-18% in the last one month, but analysts target prices suggest more upsides ahead

Cement prices are expected to rise during H2FY22, as cost inflation firms up unabatedly, said a report by HDFC Securities