India’s cement industry is set for a strong performance in FY26, bolstered by accelerating real estate growth and ongoing government-backed housing schemes. According to a new report by Axis Securities, the Pradhan Mantri Awas Yojana (PMAY) and urban expansion initiatives are likely to fuel cement demand across both affordable and premium housing segments. With infrastructure and private sector construction also picking up momentum, industry analysts anticipate a sustained surge in cement consumption across urban and semi-urban India.
The report underscores that the resurgence of real estate activity—particularly in Tier-1 and Tier-2 cities—is playing a pivotal role in driving cement consumption. Residential projects, commercial developments, and township expansions are steadily progressing as urbanisation and migration trends intensify. Cement manufacturers are expected to benefit from both volume growth and price stability, as demand increases from ongoing and newly launched housing developments. Affordable housing, catalysed by schemes like PMAY and rising disposable income, remains a core driver. Furthermore, real estate developers are now focusing on green building materials and faster construction cycles, both of which are cement-intensive. Experts also note that cement demand is closely tied to monsoon patterns and state-led infrastructure spending, both of which are showing supportive trends this fiscal. Analysts project a year-on-year increase of 7–9% in cement consumption if current economic and policy trajectories continue, making FY26 one of the most promising years for the sector.
In addition to residential housing, institutional demand for cement is also witnessing a rebound. Government projects such as smart cities, metro rail corridors, and logistics parks continue to create consistent demand across sectors. Industrial investments in warehousing and manufacturing, especially in logistics hubs like Gujarat, Maharashtra, and Tamil Nadu, further enhance cement’s consumption footprint. Many cement producers are ramping up capacity and green initiatives, anticipating long-term demand growth. Urbanisation in emerging zones around Delhi-NCR, Bengaluru outskirts, and Hyderabad suburbs is also boosting bulk procurement of cement. Simultaneously, infrastructure-linked demand—particularly in roads, flyovers, and public housing—remains crucial. Authorities involved in project finance and construction planning suggest that cement-intensive development will be central to India’s broader growth narrative through FY26 and beyond. As cement prices stabilise due to lower input costs and improved supply chain efficiencies, real estate players are expected to pass on the benefit to end users, boosting project viability.
With the combined influence of housing initiatives, real estate expansion, and infrastructure development, the cement industry is positioned for sustained growth through FY26. Strategic policy incentives and increased private sector participation are accelerating project execution, translating into higher material consumption. As urban demand broadens and construction activity rebounds post-pandemic, cement remains a foundational component in India’s development strategy. Experts believe this upswing is not a short-term trend, but part of a larger cycle of infrastructure-led economic growth. If current conditions persist, cement producers may also explore export opportunities amid surpluses, further strengthening the industry’s overall outlook.
India’s Real Estate Surge to Boost Cement Demand Through FY26
