India’s cement sector is signalling early signs of pricing stability heading into the final quarter of FY26, with leading producers indicating that improving consumption trends and disciplined supply additions could support realisations after a prolonged phase of volatility.
Large cement makers like UltraTech Cement and Ambuja Cements have pointed to price increases sustaining across markets in recent months, suggesting that the industry may be entering a more stable pricing cycle. They noted that the December quarter was marked by pricing weakness which analysts say could be because gains from rationalised GST rates were passed on to the customer.
What did Ambuja Cements exec say during Q3 earnings call
“Pricing has entered January on firmer ground, as we are seeing an uptick in price in January along with double-digit volume growth,” Vinod Bahety, chief executive, Ambuja Cements said during the fiscal third quarter earnings call.
Bahety continued that the southern markets are leading increases in the range of Rs 15 to Rs 20 for non-trade, while the northern market has witnessed price increase in the range of Rs 5 to Rs 10 in non-trade range.
“Importantly, these hikes have held, making a departure from the rollback prone patterns of the previous years,” he added.
The company attributed this to stronger demand momentum and its strategy of shifting sales towards premium products and trade channels, which typically deliver higher realizations than infrastructure-linked bulk demand.
UltraTech Cement echoed similar optimism
Market leader UltraTech Cement echoed similar optimism, indicating that robust demand is expected to absorb the industry’s ongoing capacity expansion cycle. The company noted that while cement prices softened between September and November, they have since begun improving across markets alongside consumption recovery.
UltraTech also flagged that certain macro cost pressures could create room for the industry to pass on costs, further supporting pricing stability.
“There have been cost increases in the cost of pet coke and coal, new labour code will have its own impact, rupee depreciation. All these will have an impact on the cement industry. And obviously, there is reason to pass on these cost escalations into prices,” Atul Daga, chief financial officer, UltraTech Cement said on the December quarter earnings call.
Underlying this improving pricing outlook is sustained demand recovery across key construction segments, which companies expect to remain the primary driver of realisation trends.
Ambuja Cements projected cement demand to grow about 8% in FY26, led by infrastructure spending, steady housing activity and a revival in rural construction following a favourable monsoon. The company said demand momentum strengthened from December and is expected to remain healthy in the coming quarters, supported by both institutional and retail construction activity.
UltraTech highlighted a multi-year infrastructure pipeline spanning highways, metro rail, housing and new construction segments such as data centres and renewable energy projects as demand drivers. The company expects high-capacity utilisation levels to continue, reflecting strong demand across both trade and project markets.
Other major producers have reported similar consumption trends. Dalmia Bharat said demand improved after the monsoon and festive season, estimating industry growth of about 7–8% in the December quarter and around 6% for FY26, with momentum expected to carry into the March quarter. Shree Cement also flagged strengthening volumes from November onwards and expects demand to support both capacity utilisation and realisations, although it continues to prioritise pricing discipline over aggressive volume growth.