India’s cement industry is preparing for another year of strong expansion in FY27, with major manufacturers forecasting volume growth of nearly 7-8% despite rising operational expenses linked to geopolitical tensions in West Asia. Industry leaders believe that strong domestic demand, large-scale infrastructure projects, housing development, and rapid urbanisation will continue driving cement consumption across the country.
Executives from leading companies including UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Cement, and Nuvoco Vistas have expressed confidence about the sector’s medium-term outlook. While higher fuel prices and crude oil-linked transportation costs remain concerns, companies expect robust demand from construction and real estate activity to help offset these pressures.
Industry officials noted that rising freight expenses, packaging costs, and import-dependent supply chain challenges could temporarily affect profitability. However, many companies are adopting strategies such as premiumisation and improving their trade mix to increase sales realisations and maintain healthy margins.
Ambuja Cements has projected consolidated sales volumes of nearly 80 million tonnes in FY27, indicating expected growth of close to 8%. Meanwhile, Dalmia Bharat announced plans to invest between US$ 375 million and US$ 400 million toward expansion and operational upgrades during the financial year. Nuvoco Vistas has also allocated nearly US$ 94 million for expansion initiatives aimed at strengthening its market position.
UltraTech Cement, one of the country’s largest cement manufacturers, reiterated its long-term focus on increasing production capacity and maintaining industry leadership. Executives across the sector acknowledged that geopolitical instability in West Asia may continue influencing fuel prices and logistics expenses, but they remain optimistic about the overall market environment.
“Demand fundamentals remain strong because of infrastructure and housing activity,” industry executives indicated while discussing the outlook for FY27. Companies also believe that government-backed projects in roads, railways, urban infrastructure, and real estate development will continue supporting cement demand over the coming years.
The sector is additionally witnessing growing demand from urban housing projects and commercial construction as cities continue expanding rapidly. Analysts believe that India’s infrastructure push and ongoing investments in development projects could help cement manufacturers sustain steady growth momentum even amid external economic pressures.
Despite short-term uncertainties connected to global energy markets, the industry remains focused on long-term expansion, operational efficiency, and strategic investments to capture rising domestic demand. Cement makers expect continued government spending and private sector construction activity to play a critical role in maintaining healthy growth throughout FY27.
