India is the second-largest producer of cement in the world, contributing over 8 percent to the global installed capacity. The nation houses around 210 large cement plants, with Andhra Pradesh, Rajasthan, and Tamil Nadu alone accounting for 77 of them, making these states the powerhouses of the industry.
As of FY23, India’s cement industry reached a market size of 3.96 billion tonnes, and is expected to rise to 5.99 billion tonnes by 2032, reflecting a steady CAGR of 4.7 percent between 2024 and 2032. Meanwhile, domestic cement consumption is anticipated to hit 450.78 million tonnes by the end of FY27.
South India leads the nation in cement manufacturing capacity, contributing about 32 percent of the total. The North follows with 20 percent, Central India with 13 percent, the West at 15 percent, and East India making up the remaining 20 percent. In FY23, India’s total cement production stood at 374.55 million tonnes, growing 6.83 percent year-on-year.
Looking ahead, the cement industry expects to see an 8 percent rise in sales by calendar year 2025, fueled by increased government spending on infrastructure. However, the sector still faces challenges, CY24 saw pressure on sales realisation, which could impact margins in the short term.
India exported panel cement, clinker, and asbestos cement products worth Rs. 5,099 crore in FY24. On the other hand, imports during the same period stood at Rs. 1,442 crore, showcasing a healthy trade balance for the sector.
According to CRISIL Ratings, the Indian cement industry is planning a significant capacity boost of around 150-160 MT between FY25 and FY28. This expansion builds on the 119 MT added over the past five years and is aimed at meeting rising demand from both infrastructure and housing.
Following are a few top cement stocks to watch as cement consumption is expected to rise to 450.78 million tonnes by FY27, with the market size projected to reach 5.99 billion tonnes by 2032:
UltraTech Cement Limited
With a market cap of Rs. 3.58 lakh crores, the stock moved up by nearly 1 percent on BSE to Rs. 12,170 on Tuesday. For FY26, the company has outlined a capex plan of nearly Rs. 10,000 crore. Of this, around Rs. 7,000 crore is earmarked for ongoing expansion and strategic investments. The company expects its domestic cement capacity to increase from 184 MT to nearly 212 MT, including India Cements and Kesoram.
The capex will also support investments in WHRS, alternative fuels, renewable energy projects, and plant debottlenecking. While there is also some allocation toward the cable and wire segment, it remains a relatively minor part of the overall spend. Management has set a target of achieving double-digit volume growth in FY26 through organic expansion, with additional upside expected from recent acquisitions.
Ambuja Cement Limited
With a market cap of Rs. 1.43 lakh crores, the stock moved up by nearly 2 percent on BSE to Rs. 587.3 on Tuesday. For FY26, the company has provided a capex guidance of around Rs. 9,000 crore, which includes about Rs. 6,000 crore dedicated to growth initiatives and another Rs. 2,500–3,000 crore aimed at improving operational efficiency.
The goal is to bring down the cost to Rs. 3,650 per tonne and achieve an EBITDA per tonne of Rs. 1,500 by FY28. Importantly, the entire organic capex will be funded internally through existing cash reserves and operating profits, without relying on external borrowing.
Dalmia Cement Limited
With a market cap of Rs. 41,395.6 crores, the stock moved up by nearly 1 percent on BSE to Rs. 2,225 on Tuesday. Dalmia Cement is aiming for strong long-term growth, with plans to increase its production capacity at a CAGR of 14-15 percent over the next decade. The company is targeting a capacity of 75 million tonnes (MnT) by FY28, and eventually reaching between 110–130 MnT by 2031.
In FY25, its capex stood at Rs. 2,664 crore. Looking ahead to FY26, the company has guided for a capex of around Rs. 3,500 crore. This capex will primarily be allocated toward capacity expansion at its Belgaum and Pune facilities, a new clinker line at Umrangso, strategic land acquisitions for future projects, as well as ongoing maintenance and cost-efficiency upgrades. Dalmia is also focused on improving returns, with a return on capital employed (ROCE) target of 14-15 percent over the coming years.
Shree Cement Limited
With a market cap of Rs. 1.14 lakh crores, the stock moved up by nearly 2 percent on BSE to Rs. 31,635.55 on Tuesday. For FY26, the company has outlined a capex plan of Rs. 3,000 crores. Currently, it operates with an installed cement capacity of 62.8 MT and a clinker capacity of 36.7 MT, which is expected to rise to 44 million tonnes by the end of FY26.
Two key integrated cement plants, one in Jaitaran, Rajasthan, and another in Kodla, Karnataka, are on track to be commissioned by the end of Q1 and Q2 of FY26, respectively. Looking ahead, the company has set a target of surpassing 80 MT of cement capacity by 2028.
Written by Shivani Singh
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