New Delhi, March 2026 – Indian cement prices are expected to increase towards the end of March or in early April 2026, driven by rising crude oil-linked input costs, according to a report by Nuvama. Dealers are anticipating price hikes as companies look to offset the impact of increasing petcoke prices and higher packaging costs, both of which are influenced by rising crude prices. The development comes after a brief cycle of hikes and rollbacks: cement companies had implemented price hikes in the non-trade segment across regions in early February 2026, but these were rolled back in some regions by late February 2026, leaving prices broadly stable through March so far. Despite the near-term softness, the report maintained a positive stance on the cement sector, supported by expectations of price hikes and steady demand in the coming months.
The Input Cost Pressure Building Behind the Numbers
The core driver of the anticipated hike is petcoke a key fuel used by cement manufacturers whose price rose by $13 per tonne month-on-month in February 2026 due to global cues. While this increase has not yet flowed through to consumer-facing bag prices, its effect is likely to be visible in Q1 FY27 margins, and future price hikes will remain a key monitorable for the sector.
In February, prices were increased by ₹5-10 per bag in the North, West, and Central regions, while non-trade cement prices were raised by ₹15 per bag in the East and South, before being partially rolled back within the same month. This pattern of hike-and-rollback reflects a sector navigating the tension between input cost recovery and volume-led competition, particularly as dealers continue to prioritise offtake over margin in the short term.
Real Estate Demand Softness Complicates the Picture
The report also pointed to weakness in the real estate sector, which has been impacting cement demand trends. Real estate volumes remained sluggish, with launches in volume terms falling 44% year-on-year in January 2026, following declines of 4% and 7% year-on-year in calendar years 2024 and 2025 respectively.
On the infrastructure side, the picture is more nuanced. Overall government capex, including central, state, and CPSE spending, declined 24% year-on-year to approximately ₹2 trillion in January 2026. However, cumulative capex for the period April 2025 to January 2026 stood at approximately ₹20 trillion an increase of 8% year-on-year, suggesting that the fiscal year’s infrastructure spending remains on a positive trajectory even with a January dip.
