en.Wedoany.com Reported - India-based financial services firm Equirus Securities released its latest industry report in June 2026, forecasting that the capacity utilization rate of India's cement industry will stabilize at around 70% to 71% in fiscal year 2027 (ending March 31, 2027). The report notes that although cement demand grew by approximately 6.5% to 7.5% year-on-year in FY2026 and is expected to continue growing by about 5% in FY2027, capacity expansion will keep the overall industry utilization rate largely flat.
Founded in 2007 and headquartered in Mumbai, India, Equirus Securities is a financial services company specializing in investment banking, institutional brokerage, and wealth management, providing professional research and capital solutions to multinational and local Indian enterprises. The cement industry is a key pillar of India's infrastructure development, with global second-largest cement producer UltraTech Cement, along with Shree Cement and Ambuja Cements, dominating the market.
According to the report, new capacity additions in the industry for FY2027 are expected to be 42 million to 44 million tonnes per year, down from 50 million to 55 million tonnes per year in FY2026. Cement demand in India showed strong resilience in FY2026, driven by robust construction activity, particularly during the post-monsoon peak construction season in the second half of the year. Continued growth in the housing and infrastructure sectors, along with government-led investments in roads, metro projects, industrial corridors, and ports, continues to support India's cement industry.
In recent years, the Indian government has steadily increased infrastructure investment, with a capital expenditure budget of approximately 11.1 trillion rupees (about $133 billion) for FY2026-27, up 17.1% from the previous fiscal year, focusing on transportation, energy, and urban infrastructure. These investments have effectively boosted cement demand. On the supply side, major cement producers continue to expand capacity to meet medium- to long-term demand expectations, though the pace of new capacity additions remains relatively moderate.
Equirus Securities' forecast provides a reference for assessing the short- to medium-term supply-demand balance in India's cement industry. With demand growing but capacity expanding simultaneously, industry utilization rates will remain within the current range, with price competition and cost control remaining key focus areas for cement companies. The report offers a reference for investors and industry participants to gauge the trajectory of India's cement market.
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