India's cement sector is showing strong momentum with improving demand and prices in early 2025, according to Nuvama's latest analysis. Despite a sharp decline in central government capital expenditure, state government spending has remained supportive, expanding around fifteen percent year-on-year. The FY27 budget's higher capex allocation is expected to further strengthen cement demand going forward. While real estate activity remains weak with launches declining nine percent in 2025, the overall cement sector outlook stays positive. Analysts expect healthy demand in the fourth quarter of FY26 with improving absorption and pricing power supporting sector performance throughout the coming fiscal year.
