.jpeg)
ICRA: Cement industry saw a 9% increase in consumption and an 8% increase in prices in May 2025
ICRA: According to the report of rating agency ICRA, cement consumption in India has increased by 9 percent to 39.6 million metric tonnes. At the same time, prices have also increased by 8 percent. In May 2025, the price of a 50 kg bag increased to Rs 360.
The cement industry registered a growth of 9% on an annual basis in May 2025. This information has been given in the latest report of the rating agency ICRA. According to the report, cement consumption has increased to 39.6 million metric tons (MT), while average cement prices have also increased by about 8%.
It was reported that despite low sales, the cement industry increased the price of a 50 kg bag by 8% to Rs 360 in May 2025, whereas in FY 2025, this price was Rs 340. This was 7% lower on a year-on-year basis. However, the first two months (April and May) of the current financial year have seen a 7% year-on-year increase in prices.
In addition, the report states that operating margins have also improved due to stability in input costs. This is due to low energy prices of coal and petcoke and stable diesel prices.
Want to get your story featured as above? click here!
Want to get your story featured as above? click here!
Cumulative sales volume, meanwhile, grew 8% to 78.7 million metric tonnes for the period April and May 2025, and for the complete FY2025, the sales volume grew 6.3% to 453 million metric tonnes. ICR predicts cement demand will grow 6 to 7% to 480 to 485 million metric tonnes for FY 2026. This is set to be led by sustained demand from the residential and infrastructure segments. The report also states that the ICR company margins can grow by 80 to 150 basis points to 16.3% to 17% for FY 2026.
Talking about fuel cost, coal prices fell by 19% to $100 per tonne and petcoke prices fell by 2% to Rs 10,880 per tonne in June 2025. Diesel prices remained stable at Rs 88 per liter. During the first quarter of FY 2026, coal prices were 6% lower, petcoke increased by 1% and diesel prices remained stable. According to the Cement Manufacturers Association (CMA), the total installed capacity of cement production in India is 690 MT.
