Indian Cement Volume to Grow 9% in FY26, Margins Up: Crisil

• Indian cement industry volume projected to grow 8-9% in H2 FY26, with overall FY26 growth at 6.5-7.5%, driven by demand and liquidity.
• Industry margins expected to increase by 250-300 bps, reaching 18-20% operating margin, due to higher realization, stable costs, GST cut, and premiumization.
• Average Pan-India cement prices forecast at ₹354-359 per 50 kg bag; GST reduction will lower retail prices, but premiumization will support manufacturer realization.
• Power and freight costs are projected to decrease by 2-3% and 1-2% respectively, contributing to stable overall costs despite elevated raw material prices.

Why It Matters: Indian cement industry's strong growth and profitability signal economic health.