Cement Sector Faces 2026 Demand Test Amid Pricing, Supply Risks

• India's cement sector faces a critical 2026, with demand recovery sustainability under scrutiny after subdued growth in Oct-Nov 2025.
• Pricing declined ~2.5% in Oct-Nov 2025 after earlier resilience, with non-trade segment seeing sharper drops.
• Industry consolidation sees top 5 players holding 62% capacity, but supply additions (8% CAGR) outpace demand (7% CAGR).
• This imbalance could keep utilisation below 70%, pressuring mid-cap and regional players on pricing and profitability.
• Large manufacturers are better positioned due to diversified footprint, market share ability, and stronger balance sheets, per DAM Capital.

Why It Matters: India's cement sector faces a pivotal 2026, balancing demand recovery, pricing pressures, and oversupply risks.