India’s cement sector is projected to maintain a positive trajectory in FY27, supported by steady demand conditions and higher capital expenditure allocations, according to a recent industry report.
The report observed that cement demand and pricing trends showed improvement in January 2026, indicating stabilising momentum after earlier volatility. While real estate activity remained subdued with relatively lower project launches, infrastructure and government-led spending continued to provide underlying demand support.
Capital expenditure trends presented a mixed picture in January. Central government and central public sector enterprise (CPSE) capex recorded a year-on-year decline during the month. However, state government capex continued to expand, helping offset the moderation at the central level.
For the April–December 2025 period, combined central and state government capex registered growth of around 15 per cent year-on-year, while CPSE capex saw a marginal decline. The report noted that sustained public spending remains a key demand driver for cement consumption, particularly across infrastructure and construction segments.
The Union Budget’s higher capex allocation for FY27 is expected to further strengthen demand visibility in the coming fiscal year. Improved price realisations in recent months are also likely to support profitability across the sector.
Overall, the outlook for FY27 remains constructive, backed by infrastructure-led demand, stable pricing trends and continued public investment, even as certain segments such as residential real estate experience slower growth.
