Cement demand holds up, but can it offset rising cost pressures?

The cement sector is at a crossroads with robust demand but increasing cost pressures, potentially impacting future margins. Recent market volatility (Sensex crashes) adds to the uncertainty.

• •Cement demand is holding up in southern and eastern India.
• •Investors are weighing lower valuations against rising input costs.
• •Potential cement price hikes in FY27 are being considered to offset costs.
• •Risk flag: Continued rise in input costs (e.g., fuel, freight, raw materials)
• •Risk flag: Inability to implement significant price hikes due to competitive pressures