India: A new report from market analyst ICRA forecasts cement volume growth of 6 – 7% in India’s 2027 financial year (FY2027), the 12-month period to 31 March 2027. This is less rapid growth than was seen in FY2026, when cement production volumes rose by 8.6% year-on-year on the back of higher demand from the housing and infrastructure sectors. ICRA said that in the first two months of FY2027, production volumes had increased by 8.3% year-on-year to approximately 85Mt.
Net sales prices rose by 7% in FY2026 and are likely to further increase by around 3 – 5% in FY2027. Input costs remained largely stable in FY2026, but fuel and freight costs, which are linked to global crude oil prices, have been trending upward and could further increase due to volatility depending on geopolitical developments in the Middle East, potentially exerting pressure on the sector's cost structure.
ICRA also reported that the country’s installed capacity rose by around 43 Mt/yr in FY2026, with a further add 30 – 34Mt/yr due to be commissioned in FY2027. Capacity utilisation is expected to remain at 70 – 71%, broadly in line with levels seen in FY2026.