New Delhi: Cement prices are projected to rise from January 2026 as demand rebounds following a recent slowdown, according to a report by Systematix Research.
The report noted that the average pan-India cement price dropped by about ₹6 per bag month-on-month (MoM) in October, largely due to price cuts in the southern and eastern regions.
“We expect a rebound in prices from January 2026 onwards as demand catches up,” the report stated.
A prolonged monsoon has dampened construction activity—particularly in rural areas and infrastructure projects—leading to weaker demand and limiting companies’ ability to sustain higher prices.
Among all regions, the eastern market saw the sharpest decline. Prices in Bihar fell by ₹10–15 per bag following a ₹30 per bag GST rate cut and muted construction activity amid state elections. Similarly, West Bengal recorded a price drop of ₹10–12 per bag across several areas.
In Chhattisgarh, prices held steady at around ₹300 per bag, though labour shortages continued to pose challenges. The southern region witnessed a moderate decline of ₹5–10 per bag, with the average price at ₹325 per bag. Prices in the northern (₹365 per bag) and western (₹335 per bag) regions remained relatively stable.
Channel checks by Systematix Research indicated that while monsoon-related disruptions affected near-term demand, overall volumes remained stronger year-on-year (YoY).
Dealers said price hikes in Q3 FY26 are unlikely due to government scrutiny on GST pass-through, but they anticipate a recovery in prices from January 2026 as construction activity resumes.
Despite the short-term seasonal weakness, the report predicts a strong recovery in H2 FY26, driven by infrastructure projects and urban housing demand. With sector consolidation largely completed, the report expects cement prices to firm up alongside a 7–8% volume growth in the second half of the fiscal year.
