India: Capacity utilisation in India's cement industry is expected to remain stable at around 70 - 71% in the 2027 Fiscal Year (FY2027), the 12 months to 31 March 2027, according to a new report from Equirus Securities. While the cement industry is estimated to have grown around 6.5 - 7.5% in FY2026 and demand is expected to grow around 5% in FY2027, the pace of capacity creation is expected to keep utilisation levels broadly stable across the sector.
Industry capacity additions are projected to be 42 - 44Mt/yr in FY2027, following 50 - 55Mt/yr in FY2026. The report notes that demand remained resilient during FY2026, driven by robust construction activity, especially post-monsoon in the second half of the year, supported by sustained momentum across housing and infrastructure segments. India’s cement sector continues to benefit from rapid urbanisation, increasing housing demand and government-led investments in roads, metro rail projects, industrial corridors, ports and other infrastructure projects.
