India’s cement industry registered a 9% year-on-year growth in volume in May 2025, reaching 39.6 million metric tonnes (MT), while average cement prices rose 8% to Rs 360 per 50-kg bag, according to a report by rating agency ICRA.The report noted that cement prices in the first two months of FY26 averaged Rs 360 per bag, up 7% over the same period last year. This comes after a 7% decline in FY25, where average prices had fallen to Rs 340 per bag.Volume growth also remained steady. In April and May 2025, cumulative cement dispatches rose 8% YoY to 78.7 million MT, up from 6.3% growth in FY25 when annual dispatches stood at 453 million MT, PTI reported.“ICRA expects cement volumes to grow by 6-7% YoY to 480-485 million MT in FY26, supported by sustained demand from housing and infrastructure sectors,” the report stated.Operating margins for ICRA’s sample set of companies are also expected to improve by 80–150 basis points to 16.3–17.0% in FY26, largely driven by price hikes and a favourable cost environment. Coal and petcoke prices remained lower in June, and diesel prices held steady.“Coal prices in June 2025 were down 19% YoY to $100/MT, while petcoke prices dropped 2% YoY to Rs 10,880/MT. Diesel prices remained unchanged at Rs 88/litre,” the report said.In Q1 FY26, coal prices were 6% lower YoY, petcoke was up 1%, and diesel continued to stay flat.According to the Cement Manufacturers’ Association (CMA), India’s total installed cement capacity stands at 690 MT.
