Cement Cos' Growth Falters Amid Construction Boom

Industry revenue contracted in FY25, a first in 20 years

- Krishna Kant

India's cement industry is struggling to grow volumes and revenue despite a robust expansion in the country's construction sector.

Combined revenue of cement makers—both listed and unlisted—with FY25 figures available, declined 6.9 per cent year-on-year, marking a sharp reversal from 8.7 per cent growth in the previous year. It was the first annual revenue contraction in this industry in two decades.

In contrast, the construction sector, based on gross domestic product (GDP) estimates, expanded 9.4 per cent in FY25 at current prices, slightly down from 10.6 per cent growth a year earlier, according to Reserve Bank of India (RBI) data.

The cement industry's aggregate net sales fell to ₹2.1 trillion in FY25 from ₹2.22 trillion the previous year. Meanwhile, construction-sector output rose to ₹15.72 trillion from ₹14.38 trillion.

Listed cement companies fared better, though they too recorded a 4.3 per cent decline in net sales to ₹1.85 trillion from ₹1.93 trillion, marking the industry's first revenue contraction since at least FY04.