Cement companies likely to post revenue growth in Q3, demand may surge by 11% YoY: Report

New Delhi [India], January 6 : Cement companies are expected to register revenue growth in the third quarter results, supported by strong demand momentum, with cement demand projected to record 11 per cent year-on-year growth in Q3FY26, according to a report by Axis Direct.
The report stated that Cement demand in Q3FY26 for the coverage universe is estimated to grow 11 per cent YoY, driven by stronger infrastructure activity and continued demand from the affordable housing segment.
It stated "Robust volume growth is expected to continue into Q3FY26, supported by housing demand and government-led infrastructure spending".
It noted that rural demand is likely to outperform urban markets during the quarter. This trend is expected to be supported by above-average monsoon conditions and steady wage growth in rural areas. At the same time, sustained infrastructure spending is expected to underpin overall cement volumes and provide stability to demand.
According to the report, the demand environment for cement remains strong, and the positive trend is expected to continue in the second half of FY26.
While pricing may remain competitive due to heightened competition and incremental supply additions, cement manufacturers are likely to benefit from sustained volume growth.
The report highlighted that infrastructure activity continues to remain a key growth driver, alongside steady housing demand.
Looking at the full financial year, cement demand is expected to grow in the range of 7-8 per cent in FY26. This growth is likely to be supported by the government's continued emphasis on infrastructure development and sustained housing activity across the country.
The report added that the government's capital expenditure push is expected to continue supporting cement demand in the near term.
During the quarter, non-trade demand is reported to have accelerated. This was led by a decline in cement prices following the GST rate cut, which helped improve affordability and supported higher offtake, particularly in price-sensitive segments.
Overall, the report maintained a positive outlook for the cement sector, with volume growth remaining the key driver of revenue performance in Q3FY26 and beyond, despite a competitive pricing environment.