India's cement sector faces significant headwinds as major producers cut growth forecasts. Adani Cement, UltraTech, Shree Cement, and others now expect demand growth of just 5-7% this fiscal year, down from 8-9% previously. The five largest cement companies anticipate operating profit hits of around 150 rupees per tonne due to surging fuel costs, packaging material expenses, logistics charges, and rupee weakness. Despite price increases of 20-35 rupees per bag in April and May, producers warn these hikes fall short of covering total cost inflation approaching 200 rupees per tonne. Geopolitical tensions in West Asia and moderate monsoon forecasts compound sector challenges. Adani Cement has delayed its 155 million tonne capacity target to 2030, reflecting industry-wide caution as profitability margins compress across the board.
