Indian Cement Industry Analysis

India is the second-largest cement producer in the world, accounting for over 8% of global installed capacity. Around 98% of capacity lies with the private sector, while the top 20 companies account for 70% of total production. Abundant limestone deposits across the country provide strong growth potential.

India's cement production volumes increased by 8.6% YoY to 491.4 million MT in FY26. Cement production further grew by 9.4% YoY to 42.8 million MT in April 2026. Looking ahead, ICRA expects cement volumes to grow by 7–8% in FY27, supported by sustained demand from the housing and infrastructure sectors, although growth remains exposed to downside risks from softer-than-expected GDP expansion.

According to ICRA, the cement industry’s operating profit before interest, depreciation, tax, and amortisation (OPBIDTA) per metric tonne is expected to increase to Rs. 900–950 (US$ 10.18–10.75) in FY26, before moderating to Rs. 820–870 (US$ 9.28–9.84) in FY27 due to higher fuel and freight costs.

The Union Budget 2026–27 increased public capital expenditure to Rs. 12.2 lakh crore (US$ 138.04 billion) and proposed an Infrastructure Risk Guarantee Fund to strengthen private developer confidence. The Budget also announced 7 high-speed rail corridors, a dedicated freight corridor and 20 new national waterways, which should support cement demand over the medium term.

Consumption stood at 485 MMT in FY25 and is expected to reach 450.78 MMT by FY27 and 670 MMT by 2030. Government housing schemes like PMAY, combined with a 10% increase in central infrastructure spending and 11% higher allocations in state budgets, are sustaining momentum. Rural housing now accounts for 32-34% of demand, while urban housing is rebounding with PMAY-Urban support.

Exports of panel cement, clinkers, and asbestos products stood at 467.22 million in FY26, while imports were 170.79 million in FY26. India is well placed to become a key exporter of clinker and grey cement to the Middle East, Africa, and other developing regions, with coastal plants like Gujarat and Visakhapatnam offering logistical advantages.

FDI inflows in the industry related to the manufacturing of cement and gypsum products reached Rs. 52,400.86 crore (US$ 8,062.12 million) between April 2000 and March 2026., reflecting continued investor interest in the sector. Consolidation is accelerating, with the top 10 players acquiring 140 MT over the last five years, worth Rs. 89,000 crore (US$ 10.4 billion). UltraTech and Adani-led Ambuja have been the most aggressive, especially in South India.

The government’s infrastructure pipeline is a major catalyst. Projects like the Mumbai-Ahmedabad Bullet Train corridor, consuming 20,000 cubic meters of cement daily, are boosting demand and creating employment. Affordable housing in Tier-II and Tier-III cities is also expanding rapidly, driven by policy incentives and urban migration.

Sustainability remains a growing focus in the cement sector. In December 2025, Ambuja Cements was selected for the first Indo-Swedish carbon capture and utilisation (CCU) pilot in the global cement sector. The company also commissioned 225 MW of solar power in Q3 FY26, taking total renewable energy capacity to 898 MW and remaining on track to achieve 1,122 MW by FY27.

UltraTech Cement reported renewable power capacity of 1.4 GW and waste heat recovery capacity of 1.02 GW in Q3 FY26, while reiterating its target of achieving 85% green power by 2030.

Dalmia Bharat’s renewable power consumption reached 48% in Q3 FY26, with operational renewable energy capacity increasing to 410 MW following fresh commissioning during the quarter.

Company expansions remain aggressive. UltraTech commissioned 17.4 MTPA of new capacity in FY25, acquired Kesoram’s cement business, and is pushing towards 200 MTPA by 2027 with Rs. 32,400 crore (US$ 3.9 billion) earmarked for capex.

Ambuja crossed 100 MTPA in FY25 and targets 140 MTPA by FY28, aided by the Penna Cement acquisition and integration of Orient Cement.

In April 2026, ACC Limited reported its highest-ever annual sales volume of 43.9 million tonnes in FY2026, supported by robust demand from infrastructure and housing sectors.

JSW Cement plans to triple capacity to 60 MTPA through organic growth and acquisitions, supported by a Rs. 3,600 crore (US$ 408 million) IPO.

Dalmia Bharat is expanding towards 75 MTPA by FY28, while Shree Cement is targeting over 80 MTPA by 2028 with major projects in Rajasthan, Uttar Pradesh, and Karnataka.

Ramco Cements plans to scale capacity to 30 MTPA by 2026, backed by Rs. 1,403 crore (US$ 168 million) of ongoing expansion.

Looking ahead, India’s cement industry is projected to grow at a CAGR of 5.1% from 2025 to 2030, reaching an installed capacity of 850 MTPA by 2030 and 1,350 MTPA by FY50. Demand growth of 7-8% CAGR until FY26, supported by housing, infrastructure, and industrial projects, will sustain India’s position as the world’s second-largest cement producer and a potential global exporter.

India’s cement industry is on a robust growth trajectory, underpinned by expanding infrastructure, housing demand, and strong private sector investments. With capacity expansions, technological advancements, and sustainability initiatives accelerating, the sector is well poised to achieve 850 MTPA capacity by 2030 and reinforce its global standing. As policy reforms, green innovations, and export opportunities align, India’s cement industry is set to play a pivotal role in building the nation’s infrastructure vision and driving sustainable growth in the decades ahead.