India’s leading cement manufacturers are optimistic about business prospects for the remainder of the financial year, supported by steady demand from the housing sector and continued government expenditure on infrastructure.
Cement companies reported a high single-digit volume growth in the July–September quarter (Q2 FY26), accompanied by improved sales realisation. The country’s top five players—UltraTech Cement, Ambuja Cement, Shree Cement, Dalmia Bharat and Nuvoco Vistas—posted revenue growth of up to 18%, driven by firm demand, premium product offerings and favourable cost conditions.
With coal prices declining and diesel rates remaining stable year-on-year, companies were able to cushion the impact of higher petcoke prices. During their latest earnings calls, cement makers highlighted that the second half (H2) of FY26 is likely to outperform, supported largely by the individual home builders (IHB) segment, particularly in rural and semi-urban regions. A good monsoon season, recent tax incentives and GST reforms were also cited as positive demand triggers.
UltraTech Cement, which registered around 13% growth in rural markets, expects housing construction to remain the core demand driver. The company also pointed to frequent announcements of new government infrastructure projects, which are expected to reinforce market sentiment.
“The housing sector would be the key driver for growth, particularly rural housing. Demand has been good, and with a good monsoon this year and the revision in MSP, rural India is likely to do very well,” said Managing Director Kailash C. Jhanwar during the earnings call.
Industry analysts note that increasing activity in the affordable housing space, combined with infrastructure build-out ahead of multiple state and national projects, may lead to sustained cement demand through the rest of the fiscal year.