New Delhi [India], March 6 : Cement demand showed improvement in February 2026 and is expected to remain strong through March 2026, according to a report by Nuvama.
However, the report highlighted that geopolitical uncertainties and rising pet coke prices may influence cement companies in the near term.
The report noted that cement demand improved in February 2026 and is likely to sustain through March 2026, indicating a positive outlook for the sector in the short term.
It stated "Cement demand improved in Feb-26 and is likely to sustain through Mar-26".
In terms of pricing, cement manufacturers implemented price hikes in several regions during February. Prices were increased by Rs 5-10 per bag in the North, West and Central regions during the month.
In the East and South regions, non-trade cement prices were increased by Rs 15 per bag in early February. However, the report noted that these price hikes were later rolled back during the same month.
Despite the earlier adjustments in February, the report highlighted that no price hikes have been taken across regions in March 2026 so far.
According to dealer checks cited in the report, cement prices are expected to remain stable at current levels during March, mainly due to efforts by companies to push volumes.
The report added that healthy demand and steady prices remain positive indicators for the cement sector. However, certain external factors may affect the sector's performance going forward.
One of the key risks highlighted in the report is the ongoing geopolitical issues, which could impact market sentiment and potentially affect housing demand in the future.
Another factor that could influence profitability is the increase in pet coke prices, an important fuel used by cement manufacturers. The report noted that pet coke prices increased by USD 13 per tonne month-on-month in February 2026 due to global cues.
While the increase in pet coke prices may not immediately impact companies, the report said that its effect is likely to be visible in Q1FY27E margins.
The report also pointed out that recent geopolitical volatility has the potential to affect demand and margins in the near term.
Given this backdrop, the report stated that future price hikes will remain a key monitorable for the sector.
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