The cement industry has registered a 9 per cent volume growth in May this year at 39.6 million metric tonnes (MT), while the average cement prices also increased by 8 per cent, says a report. According to the latest report by rating agency ICRA, the cement industry, which is facing a lower sales realisation, also reported a price growth of 8 per cent to Rs 360 per 50 kg bag in May 2025. Moreover, there is also improvement in operating margins, led by stable input costs as energy prices of coal and petcoke, are lower and diesel prices are stable, the report added. "In the first two months (April and May) of FY'26, the prices were up 7 per cent year-on-year (YoY) at Rs 360/bag (of 50 kg). In FY2025, cement prices declined by 7 per cent YoY to Rs 340/bag," it said. Moreover, in the months of April and May this fiscal, volumes increased by 8 per cent YoY to 78.7 million MT. "In FY2025, volumes rose by 6.3 per cent to 453.0 million MT," it said. Based on this, ICRA expects cement volum
Other key players have also announced plans to significantly raise capacities
Buoyed by improving demand, domestic cement output grew 6.3 per cent to 298 million tonne (MT) in 2017-18, according to credit rating firm Icra. It also said that going by the prevalent trend, the growth momentum is expected to continue in the current financial year and the industry is likely to report a growth of 6 per cent. "In 2017-2018, cement production registered a growth of 6.3 per cent at 298 MT, as compared to 280 MT in 2016-2017, with the bulk of growth reported during the second half of FY'18," Icra said in a report. "This was largely because of better demand in the key markets and the base effect of the demonetisation-driven low demand during the corresponding period of last year," it added. Senior Vice President & Group Head, Icra Ratings, Sabyasachi Majumdar said: We expect the cement demand to show a growth of around 6 per cent in FY 2018-2019. This is primarily driven by a pick-up in the affordable and rural housing segments and infrastructure primarily road and .