Ambuja Cements Sees Cement Demand Growth Slowing to 5% in FY27 Despite Strong Infrastructure Push

India’s cement industry is expected to maintain its growth momentum in the current financial year, though at a slower pace than what was witnessed in FY26. Ambuja Cements, the country’s second-largest cement producer, has projected industry demand growth of around 5% in FY27, compared with an estimated 6.5% to 7.5% growth recorded during the previous fiscal.

The company believes demand will continue to be supported by government spending on infrastructure, ongoing housing projects and rural development initiatives across the country. Investments in roads, railways, urban infrastructure and public construction programmes are expected to remain key demand drivers for the sector.

The outlook comes at a time when India’s cement manufacturers are expanding capacities aggressively to position themselves for the next phase of growth. While demand remains healthy, industry executives are increasingly focused on balancing capacity additions with market absorption and regional demand trends.

For Ambuja Cements, FY26 was a year of significant expansion. The company increased its installed cement production capacity to 109 million tonnes per annum from 89 million tonnes a year earlier. The growth was supported by strategic acquisitions as well as ongoing expansion projects across multiple locations.

The company remains on track to raise its capacity further to 119 million tonnes by FY27. According to Ambuja Cements, the immediate priority will be to stabilize newly added capacities while improving operational efficiencies and maximizing utilization levels.

The Adani Group company has also been pursuing a major consolidation strategy within its cement business. Following the integration of Sanghi Industries and Penna Cement Industries, the company is moving ahead with plans to bring ACC and Orient Cement under a unified operating structure. The initiative, branded as the “One Cement Platform,” is aimed at improving operational synergies and strengthening competitiveness across markets.

Despite expectations of slower demand growth, industry participants remain optimistic about the long-term outlook. Urban housing demand, infrastructure investments and industrial expansion continue to create a strong foundation for cement consumption. Analysts believe India will remain one of the world’s fastest-growing cement markets, providing significant opportunities for manufacturers over the coming decade.