Daijiworld Media Network- New Delhi
New Delhi, Apr 17: The Indian cement industry is poised for a resurgence, with both prices and volumes expected to strengthen in the coming months, buoyed by improving demand and a favourable comparative base, according to a new report by Nuvama Research.
The report highlights a positive shift in the outlook for the sector, stating, “We believe the outlook is improving for the cement space as both volumes and prices are likely to record an uptick going ahead, aided by a low base of FY25E.”
As of April 2025, cement prices have witnessed an upward movement across all regions, with the southern region seeing the steepest increase, followed by eastern, central, northern, and western parts of the country. The surge in prices is attributed primarily to a rise in demand. However, dealers anticipate a partial rollback of the latest hikes toward the month-end.
The demand boost has been fuelled largely by capital expenditure from the central and state governments, as well as Central Public Sector Enterprises (CPSEs). After a sluggish start, central government capex—down 12 per cent in the first eight months of FY25—has rebounded, recording a 1 per cent increase in the first eleven months. CPSE capex, which had fallen by 10 per cent in the same period, stabilised by year-end. State-level spending has also picked up, further bolstering demand in the sector.
The report forecasts a 7-8 per cent year-on-year volume growth in the fourth quarter of FY25. However, full-year growth is expected to moderate to around 4-5 per cent, primarily due to the ongoing general elections, a temporary slowdown in construction activity, and a strong base effect from FY24.
In the previous fiscal year, the industry had registered an impressive 9 per cent volume growth. A similar pattern was observed in FY20—post the last general elections—when volume growth dipped by 1 per cent following a robust 13 per cent expansion in FY19.
Despite near-term hurdles, Nuvama Research maintains that the cement sector is on a steady recovery path, with improving pricing power and stable demand projected to drive future growth.