India’s long-term cement demand outlook remains robust, supported by sustained growth in housing, infrastructure, and urban development, according to a report by PL Capital released on Wednesday.

At a national level, cement prices rose 7% year-on-year, climbing from ₹330 per bag in August 2024 to ₹354 per bag in August 2025. The highest price point during the 26-month period was in November 2023, when average prices peaked at ₹387 per bag. However, in August 2025, the all-India average declined by ₹6 month-on-month to ₹354.

The eastern region led the downward trend, with Patna seeing the steepest correction due to heavy rainfall, seasonal softness, and local festivals that slowed construction activity. While demand is expected to improve as the monsoon retreats, analysts suggest pricing recovery may only materialize after the festive season.

“For cement companies, the next two months will be critical in balancing cost pressures with demand revival,” the report stated. Post-monsoon rural demand, traditionally a key growth driver, is projected to strengthen, aided by increased infrastructure spending.

Tushar Chaudhari, Research Analyst at PL Capital, said:

“After remaining largely steady for the past three months despite the monsoon, cement prices witnessed a sharp correction in August, most notably in the eastern region.”

He noted that while companies are attempting to raise prices in anticipation of a potential GST rate rationalisation, weak festive demand may limit success. Furthermore, the commissioning of new cement production capacities could pressure the sustainability of current price levels.

The report also flagged concerns around inventory build-ups, as repeated announcements of price hikes—without implementation—have strained dealers’ working capital. With the festive season and possible tax changes ahead, the industry faces a critical phase of demand revival amid pricing uncertainty.