India Cement - Margin comfort fades amid seasonal pressure

Research evidence excerpt

India Cement - Margin comfort fades amid seasonal pressure

Global Markets Research

1 July 2026India Cement

EQUITY: CONSTRUCTION MATERIALS

Margin comfort fades amid seasonal pressure Research Analysts

India Construction Materials

Dealer checks indicate pricing power is likely to weaken further as Jashandeep Singh Chadha - NFASL

monsoon headwinds set in, making current price level sustenance critical jashandeep.singhchadha@nomura.com

+91 22 40374124

Regional demand divergence persists; monsoon likely to limit scope for further hikes

Our channel checks indicate pan-India average cement trade prices remained broadly flat

at ~INR326/bag in Jun-26 and are likely to remain rangebound or soften in Jul-26F as

the onset of the monsoon weighs on the sector. While 1QFY27 trade prices were

modestly higher by ~3% q-q (~INR8/bag), our dealer checks suggest demand recovery

remained uneven across regions during the quarter due to election-related disruptions,

slower construction activity and labour shortages. As the industry enters the seasonally

weaker monsoon period, dealers do not expect any meaningful trade price hikes in

Jul-26, with sustaining current price levels likely to remain the key focus.

Regionally, the South continues to witness subdued demand, with dealers in Hyderabad

describing demand as being at its weakest level, while dealers in Kerala and Tamil Nadu

highlighted persistent labour shortages and sluggish construction activity. In contrast, the

West continues to see improving demand supported by better volume offtake, although

dealers do not expect further price hikes as the industry enters the monsoon quarter. The

East remains under pressure despite the completion of elections, with dealers in Kolkata