Updated 16 January 2026 at 19:15 IST
Cement Sector Starts 2026 on Stronger Footing as Pan-India Price Hikes Hold
India’s cement sector has begun 2026 with early signs of recovery after two consecutive years of muted post-winter demand, as dealers report improved volumes from December 2025 and sustained price hikes across most regions in January
India’s cement sector has begun 2026 with early signs of recovery after two consecutive years of muted post-winter demand, as dealers report improved volumes from December 2025 and sustained price hikes across most regions in January. The pickup marks a shift from the pattern seen in 2024 and 2025, when seasonal demand around mid-January failed to translate into lasting momentum and price increases were frequently rolled back.
According to channel checks, cement volumes began improving in early December itself, aided by a favourable base effect following two subdued years and the pass-through benefits of recent GST rate adjustments. This earlier-than-usual demand revival has allowed producers to announce price hikes across trade and non-trade segments with greater confidence.
Southern Markets Lead Early Price Momentum
Southern India has emerged as one of the early drivers of pricing traction. In Bengaluru, cement companies raised trade prices by ₹10–20 per bag and non-trade prices by about ₹20 per bag in the first week of January. Dealers expect further increases once construction activity accelerates post-Makar Sankranti.
Hyderabad has seen one of the sharpest hikes so far, with cement prices rising by ₹50 per bag from January 1. Importantly, dealers indicate that this increase has sustained, unlike previous years when such hikes were quickly reversed due to weak demand.
Northern Region Mixed as NCR Remains a Drag
In northern India, demand conditions vary sharply by location. Jaipur has reported strong cement offtake driven by infrastructure projects, allowing producers to raise prices by ₹15 per bag across both trade and non-trade categories.
The National Capital Region, however, continues to lag. Construction activity has been impacted by winter fog and pollution-related restrictions, limiting price increases to around ₹5 per bag in the non-trade segment. The pricing imbalance is evident in the widening gap between trade and non-trade cement prices, which now stands at approximately ₹70 per bag in NCR.
Western India Benefits from Supply Constraints
Western markets have seen steady price increases supported by both demand and supply-side factors. In Mumbai, cement prices were raised by ₹5 per bag in the first week of January, followed by a further ₹10 per bag hike in the second week. Dealers cited supply tightness due to rake unavailability as a key factor underpinning pricing power.
Ahmedabad has also seen non-trade cement prices increase by about ₹15 per bag, reflecting stable regional demand.
Eastern India Sees Sharpest Price Increases
Eastern India has recorded some of the most aggressive price actions in the current cycle. In Kolkata, trade cement prices rose by ₹30 per bag in the first week of January, followed by an additional ₹20 per bag hike. Non-trade prices have increased by ₹10 per bag.
Dealers noted that demand in December 2025 was already strong, as buyers advanced purchases in anticipation of January price hikes. Bhubaneswar has also reported a ₹10 per bag increase, pointing to broader regional strength.
Costs Remain Stable as Fuel Mix Shifts
On the cost front, cement manufacturers have managed to keep margin pressures in check despite elevated pet-coke prices. Companies have increasingly shifted towards coal as an alternative fuel, helping stabilise input costs. This has supported pricing discipline and reduced the risk of immediate margin erosion.
Valuations and Stock Performance Reflect Cautious Optimism
Valuation metrics indicate significant dispersion across the sector. Large players such as UltraTech Cement and Ambuja Cement trade at premium levels, though their EV/EBITDA ratios are projected to decline from about 30x and 25x in FY25 to around 15x and 11x, respectively, by FY28.
Mid-sized players show sharper valuation compression. Birla Corporation’s EV/EBITDA is estimated to decline from about 9.5x in FY25 to nearly 6x by FY28, while JK Cement’s multiple is projected to fall from roughly 24.5x to about 14x over the same period.
In terms of stock performance, JK Cement has gained over 30% in the past 12 months, while Dalmia Bharat and Ramco Cement have risen about 26% and 20%, respectively, highlighting selective outperformance amid an uneven recovery.
Cement Sector Starts 2026 on Strong Footing, Pan-India Price Hikes Hold
Published By : Shourya Jha
Published On: 16 January 2026 at 19:15 IST