Q2FY26 Cement Industry Update

Q2FY26 was a steady but not hot quarter for cement. Industry sales volumes for large players were about 5% higher than last year, though down roughly 9% versus the previous quarter because of long monsoons and festivals. Prices held firm – flat quarter-on-quarter and ~9% higher year-on-year – even after the GST cut from 28% to 18%, whose benefit has now been fully passed on to customers.

Freight costs were broadly stable and companies improved margins through cost savings. Demand was weak in October but has started improving from November, and should pick up further as rains recede. Dealers do not expect any major price hikes at least till end of Q3FY26, so buyers can plan with reasonable price stability. For FY26, the industry is expected to see mid-single-digit volume growth, with prices likely to stay range-bound despite rising competition and new capacity additions.