Business
Cement Industry Expects 7–8% Growth in FY27 Despite Rising Fuel Costs
India’s leading cement manufacturers, including UltraTech Cement, Ambuja Cements and Shree Cement, are projecting healthy growth of 7–8 per cent in FY27, driven by infrastructure expansion, housing demand and urbanisation, even as rising fuel costs linked to the West Asia crisis pose short-term challenges.
India’s major cement manufacturers are optimistic about strong growth prospects for the industry in FY27, projecting expansion in the range of 7–8 per cent despite near-term pressures from rising fuel and energy costs caused by the West Asia crisis.
Executives from leading companies such as UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Cement and Nuvoco Vistas expressed confidence about medium-term demand during their latest earnings calls.
Industry leaders cited continued government expenditure on infrastructure projects, robust housing demand, and rapid urbanisation as key growth drivers expected to sustain cement consumption across the country.
The companies are also banking on premiumisation strategies and improved sales realisations to protect profitability amid higher operational costs. Rising international fuel prices, particularly petroleum coke and coal, have increased cost pressures for cement manufacturers in recent months.
Despite these challenges, cement firms are stepping up capital expenditure plans for FY27 to expand production capacity and strengthen market presence ahead of anticipated long-term demand growth.
Analysts believe the sector could benefit significantly from ongoing public infrastructure initiatives, highway construction, urban redevelopment projects, and increased residential construction activity. The continued momentum in India’s infrastructure and real estate sectors is expected to support cement demand over the coming years.
