India’s cement industry showed strong growth in May 2025. Cement production went up by 9% compared to last year, reaching 39.6 million metric tonnes (MT). At the same time, the average price of a 50-kg cement bag increased by 8% to Rs 360, according to a report by rating agency ICRA.
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In the first two months of the financial year 2025-26 (April and May), cement prices averaged Rs 360 per bag. That’s 7% higher than the same time last year. This increase follows a drop in prices in FY25, when the average price was Rs 340 per bag.
Cement volume also stayed strong. In April and May 2025, total cement dispatches grew by 8% year-on-year, reaching 78.7 million MT. In comparison, FY25 saw a 6.3% growth, with total yearly dispatches at 453 million MT.
Looking ahead, ICRA expects cement volumes to grow by 6–7% this financial year, reaching 480–485 million MT. This growth is likely to come from continued demand in the housing and infrastructure sectors.
Companies in the cement sector are also likely to earn better profits. Their operating margins could improve by 0.8% to 1.5%, reaching 16.3%–17.0% in FY26. This is because of higher cement prices and lower input costs.
In June 2025:
- Coal prices dropped by 19% to $100/MT
- Petcoke prices decreased by 2% to Rs 10,880/MT
- Diesel prices stayed steady at Rs 88/litre
Over Q1 of FY26, coal prices were 6% lower, petcoke went up by 1%, and diesel prices remained the same.
As per the Cement Manufacturers’ Association (CMA), India currently has a total cement production capacity of 690 million MT.
