Cement prices in South India have seen a sharp increase of ₹45–50 per bag in Q1FY26, translating to a 10–11% rise quarter-on-quarter from March 2025 exit levels. This pricing trend was highlighted in a recent report by JM Financial Institutional Securities, following a ground-level visit to Dachepalli — a key cement production hub.

According to JM Financial’s report titled “Indian Cement | Sagar Cements: Dachepalli plant visit takeaways”, the Southern region has witnessed firm pricing after years of sluggish growth. The analysts noted that despite the recent rise, spot cement prices are still 15–20% below historical peaks, indicating potential for further firming if demand continues to improve.

Key Drivers of Price Increase:

  • Regional Demand Recovery: Consumption is rebounding across Andhra Pradesh, Telangana, and Tamil Nadu, with overall demand expected to grow 6–8% YoY in FY26.
  • Better Pricing Discipline: Cement manufacturers appear to be maintaining production discipline, avoiding excess supply in the market.
  • Pre-Monsoon Activity: Construction and infrastructure stocking ahead of monsoons has also supported short-term demand.

The report adds that the outlook for cement prices in the Southern region remains positive, supported by strong infrastructure push and upcoming capex across the sector.

Also Read: Homes to be delayed, as cement, steel prices go up

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