Cement demand growth likely to moderate to around 5 pc in FY27: Ambuja Cements
Business 11 Jun, 2026

Cement demand growth likely to moderate to around 5 pc in FY27: Ambuja Cements

Business To Business, New Delhi, 11th June, 2026:    Ambuja Cements, part of the Adani Group, expects demand growth in India's cement industry to moderate to around 5% in FY2026-27, compared with an estimated 6.5–7.5% growth in FY2025-26, according to its annual report.
Demand Drivers Remain Strong
Despite the expected slowdown in growth, the company remains optimistic about the sector's outlook, citing continued support from:

  • Housing construction
  • Infrastructure development
  • Urbanization trends
  • Government capital expenditure
These factors are expected to sustain overall cement consumption, albeit at a more moderate pace than in the previous fiscal year.
Capacity Expansion Strategy
The company said it is undertaking capacity additions in a phased manner to align with:
  • Project pipelines
  • Regional demand patterns
  • Market absorption capacity
According to the report, this approach is intended to ensure:
  • Timely utilization of new capacity
  • Efficient deployment of capital
  • Better operational performance
Following a series of acquisitions in recent years, Ambuja Cements has emerged as one of India's largest cement producers and is currently the country's second-largest cement maker.
The company's expansion strategy has included acquisitions of multiple cement businesses as part of the Adani Group's broader effort to strengthen its presence in the building materials sector.
The forecast suggests that while growth may ease from the strong levels seen in FY26, the industry's fundamentals remain healthy. Demand is expected to be supported by:
  • Ongoing infrastructure projects
  • Affordable and urban housing demand
  • Industrial and commercial construction
  • Public investment in roads, railways, and other infrastructure
A 5% growth rate would still represent a solid expansion for the sector, reflecting continued economic activity and construction demand across India.

Related News