Concrete

ICRA Sees Steady Cement Demand Growth Ahead

Volumes seen rising 6–7 per cent in FY27 on infra push

Published

4 weeks ago

January 2, 2026

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India’s cement industry is expected to record steady growth over the coming years, with cement volumes projected to expand by 6–7 per cent in FY27, supported by sustained demand from the housing and infrastructure sectors, according to a report by rating agency ICRA.

The agency said the sector is likely to maintain healthy momentum after registering growth of 6.5–7.5 per cent in FY26, despite a higher base in the second half of FY25. Cement demand remained strong in the current financial year, with volumes increasing by 8.5 per cent during the first eight months of FY26, driven by robust construction activity across regions.

ICRA expects demand to strengthen further in the second half of FY26 as construction activity accelerates after the monsoon. Continued government focus on infrastructure spending and the possibility of a reduction in goods and services tax on cement are also expected to support demand through FY26 and FY27.

Against this favourable demand backdrop, cement manufacturers are continuing to expand capacity through both organic and inorganic routes to strengthen their market positions. The industry is estimated to add 85–90 million tonnes per annum of capacity during FY26–FY27, including around 43–45 million tonnes per annum in FY26 and a further 42–44 million tonnes per annum in FY27.

Commenting on the outlook, Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings at ICRA, said sector profitability is expected to improve significantly in FY26, supported by better pricing and higher volumes. Operating profit before interest, depreciation, tax and amortisation per tonne is projected to rise to around Rs 900–950 per tonne in FY26, compared with Rs 810 per tonne in FY25.

However, ICRA expects some moderation in earnings in FY27 due to rising input costs. Operating profit per tonne is estimated at Rs 880–930 in FY27, as costs related to pet coke and freight are likely to increase and remain influenced by global crude oil prices and geopolitical developments.

On a regional basis, North and Central India are expected to report capacity utilisation levels above the national average, while the southern region may continue to see relatively moderate utilisation due to existing capacity overhang. ICRA noted that recent merger and acquisition activity in the southern market has helped large players strengthen their regional and pan-India presence.

Overall capacity utilisation for the cement industry is projected to remain stable at around 70–71 per cent in FY27, broadly in line with FY26 levels, albeit on an expanded capacity base.

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Concrete

NITI Aayog Unveils Decarbonisation Roadmaps

Cement, aluminium and MSMEs targeted for green transition

Published

2 days ago

January 28, 2026

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NITI Aayog has released reports outlining decarbonisation roadmaps for the cement, aluminium and micro, small and medium enterprise sectors, highlighting the need to balance emission reduction with sustained economic growth and competitiveness.

Speaking at the launch event in New Delhi, NITI Aayog Vice Chairman Suman Bery emphasised the critical role of the MSME sector in India’s development, describing it as a key driver of employment, innovation and inclusive growth. He stressed the importance of strengthening the sector to support long-term economic expansion.

NITI Aayog Chief Executive Officer BVR Subrahmanyam said the aluminium and cement industries are among the most energy-intensive sectors and major contributors to industrial emissions. He noted that decarbonisation across these sectors is essential for meeting India’s climate commitments while maintaining long-term economic competitiveness.

According to Subrahmanyam, the roadmaps provide a strategic vision to help the aluminium, cement and MSME sectors reduce emissions while continuing to grow and remain globally competitive. For MSMEs, the roadmap focuses on improving access to affordable green finance, technology and capacity building to ensure an inclusive and smooth transition.

The report recommends prioritising the use of refuse-derived fuels, increasing clinker substitution, scaling up carbon capture, utilisation and storage, and strengthening the implementation of the carbon credit trading scheme to enable deep decarbonisation in the cement and aluminium sectors.

It also outlines a green transition pathway for MSMEs built around three key levers: deployment of energy-efficient equipment, adoption of alternative fuels, and integration of green electricity into operations.

Concrete

Aris Secures Rs 630 Million Concrete Supply Order

Aris wins ready-mix concrete contract from LD Patel Group subsidiary.

Published

3 days ago

January 27, 2026

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Arisinfra Solutions Limited has secured a ready-mix concrete supply order worth approximately Rs 630 million through its subsidiary Buildmex from the LD Patel Group, strengthening its execution footprint in the core construction materials segment.

LD Patel Group is a well-established civil contracting firm known for delivering large and complex construction projects for developers, corporates, institutions and government bodies across India. The engagement reflects confidence in Arisinfra’s ability to support high-intensity construction activity through a disciplined, partner-led operating model.

Concrete execution requires strong coordination across production planning, quality control, delivery sequencing and on-site operations. Arisinfra integrates these elements through a networked asset-light approach, combining partner capacity with technology-enabled operating controls to ensure predictable delivery outcomes without owning plants or fleets.

The order marks another step in Arisinfra’s expansion across execution-critical material categories. The company continues to scale operational capability and strengthen its trusted delivery network, reinforcing its position in India’s construction materials ecosystem.

Concrete

NBCC Wins Rs 550m IOB Office Project In Raipur

PMC Contract Covers Design, Execution And Handover

Published

1 week ago

January 20, 2026

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State-owned construction major NBCC India Ltd has secured a new domestic work order worth around Rs 550.2 million from Indian Overseas Bank (IOB) in the normal course of business, according to a regulatory filing.

The project involves planning, designing, execution and handover of IOB’s new Regional Office building at Raipur. The contract has been awarded under NBCC’s project management consultancy (PMC) operations and excludes GST.

NBCC said the order further strengthens its construction and infrastructure portfolio. The company clarified that the contract is not a related party transaction and that neither its promoter nor promoter group has any interest in the awarding entity.

The development has been duly disclosed to the stock exchanges as part of NBCC’s standard compliance requirements.