New Delhi [India], March 19 : Cement prices are expected to surge towards the end of March or early April 2026 due to rising crude-linked input costs, according to a report by Nuvama.
The report highlighted that dealers are anticipating price hikes as companies look to offset the impact of increasing pet coke prices and higher packaging costs, both of which are influenced by rising crude prices.
"Dealers expect price hikes in late Mar-26/early Apr-26 to mitigate the impact of rising petcoke prices and packaging costs," the report noted.
It added that cement companies had implemented price hikes in the non-trade segment across regions in early February 2026, but these were rolled back in some regions by late February 2026. Prices have remained broadly stable so far in March 2026.
Despite the recent softness, the report maintained that the demand outlook remains positive.
"Despite some softness in Mar-26, we expect demand to be healthy in Q4FY26E. We are positive on the cement space in view of the likely price hikes," it said.
The report further noted that the stock performance of cement companies is likely to be influenced by the trajectory of cement prices and petcoke prices going forward.
On the macro front, government capital expenditure trends showed some moderation. Overall government capex, including central, state, and CPSE spending, declined 24 per cent year-on-year to around Rs 2 trillion in January 2026.
However, cumulative capex for the period April 2025 to January 2026 stood at approximately Rs 20 trillion, registering an increase of 8 per cent year-on-year.
The report also pointed to weakness in the real estate sector, which has been impacting cement demand trends. Real estate volumes remained sluggish, with launches in volume terms falling 44 per cent year-on-year in January 2026, following declines of 4 per cent and 7 per cent year-on-year in calendar years 2024 and 2025, respectively.
Overall, the report maintained a positive stance on the cement sector, supported by expectations of price hikes and steady demand in the coming months.