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The Indian cement industry is anticipated to sustain its mid single-digit growth journey in the nest fiscal, helped by the factors including steady demand from housing and infrastructure projects, said rating agency ICRA in its report.
It expects India’s cement industry to grow about 6 to 7% in FY27, and touch 6.5 to 7.5% growth in the current fiscal year FY26.
Moreover, the agency also expects the industry ”to add 85-90 million MTPA capacity during FY2026-FY2027”, while operational EBITDA is estimated to be at ₹880-930 per Metric Tonnes (MT) in FY2027 helped by better pricing and higher volumes.
Read more: Outlook 2026: Cement sector faces demand test as pricing and supply risks loom
”Cement demand remained strong, with volumes expanding by 8.5% in FY2026, aided by robust construction activities. With post-monsoon construction expected to pick up pace, a sequential improvement in demand is likely to take place in H2 FY2026,” it said.
Besides, GST reforms, which slashed duty on finished cement from 28% to 18%, along with increased spendings by the government on infrastructure spending, is expected to bolster demand momentum through FY2026 and FY2027.
Read more: Cement industry to record 9% volume growth in FY26: Crisil Intelligence
Amid healthy demand prospects, major cement companies are expanding capacities through both organic and inorganic means to further strengthen their market share.
”The industry is expected to add 42-44 million MTPA capacity in FY2027, after 43-45 million MTPA capacity addition in FY2026,” it said.
Some regions such as north and central India are likely to witness higher capacity utilisation than the national average of about 70%, while the southern region may continue to witness relatively moderate utilisation due to capacity overhang.
Overall, capacity utilisation of the industry is projected to remain stable at 70-71% in FY2027, similar to FY2026, on an expanded base, it added.
According to the Cement Manufacturers’ Association (CMA), the apex body of large cement firms, India’s installed cement capacity is 700 MTPA. It is the second largest manufacturer after China.
It expects India’s cement industry to grow about 6 to 7% in FY27, and touch 6.5 to 7.5% growth in the current fiscal year FY26.
Moreover, the agency also expects the industry ”to add 85-90 million MTPA capacity during FY2026-FY2027”, while operational EBITDA is estimated to be at ₹880-930 per Metric Tonnes (MT) in FY2027 helped by better pricing and higher volumes.
Read more: Outlook 2026: Cement sector faces demand test as pricing and supply risks loom
”Cement demand remained strong, with volumes expanding by 8.5% in FY2026, aided by robust construction activities. With post-monsoon construction expected to pick up pace, a sequential improvement in demand is likely to take place in H2 FY2026,” it said.
Besides, GST reforms, which slashed duty on finished cement from 28% to 18%, along with increased spendings by the government on infrastructure spending, is expected to bolster demand momentum through FY2026 and FY2027.
Read more: Cement industry to record 9% volume growth in FY26: Crisil Intelligence
Amid healthy demand prospects, major cement companies are expanding capacities through both organic and inorganic means to further strengthen their market share.
”The industry is expected to add 42-44 million MTPA capacity in FY2027, after 43-45 million MTPA capacity addition in FY2026,” it said.
Some regions such as north and central India are likely to witness higher capacity utilisation than the national average of about 70%, while the southern region may continue to witness relatively moderate utilisation due to capacity overhang.
Overall, capacity utilisation of the industry is projected to remain stable at 70-71% in FY2027, similar to FY2026, on an expanded base, it added.
According to the Cement Manufacturers’ Association (CMA), the apex body of large cement firms, India’s installed cement capacity is 700 MTPA. It is the second largest manufacturer after China.
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