India's Infra Push to Drive 7-8% CAGR Growth in Cement Demand: Report

The cement demand is expected to remain strong in coming years with a growth of 7-8 percent CAGR (compound annual growth rate) over FY25E-27E according to a report by JM Financial.

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The report stated that after a brief slowdown anticipated in FY25E, the sector is expected to witness strong growth, driven by positive demand fundamentals and structural changes within the industry.

"Demand for cement is expected to remain strong, particularly after a breather in FY25E, with key demand drivers looking positive and the sector poised for 7-8 pc CAGR over FY25E-27E" said the report.

It also noted that the key drivers for the sector include robust infrastructure development and an increase in construction activities across the country.

The report also highlighted a shift towards cost optimization and derisking strategies among cement manufacturers.