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Ambuja Cements has projected India's cement demand growth to moderate to around 5% in FY2026-27, compared with an estimated 6.5–7.5% growth in FY2025-26. The Adani Group company said demand will continue to be supported by housing construction, rural development programmes and government-led infrastructure investments, although growth is expected to ease from the previous fiscal. The company remains focused on expanding capacity through a mix of greenfield and brownfield projects while integrating recent acquisitions. Ambuja increased its installed cement capacity to 109 million tonnes per annum (MTPA) in FY2025-26 from 89 MTPA a year earlier and aims to reach 119 MTPA in FY2026-27. The company also continues to consolidate its cement operations under a unified platform through mergers and acquisitions.
Ambuja Cements expects India's cement industry demand to grow by around 5% in FY2026-27, indicating a moderation from the estimated 6.5–7.5% growth recorded in FY2025-26, according to the company's latest annual report. Despite the slower pace, the company expects demand to remain supported by continued activity in the housing and infrastructure sectors.
The Adani Group-owned cement manufacturer stated that urban housing developments, rural infrastructure initiatives and ongoing investments in roads, railways and other public infrastructure projects are expected to remain key demand drivers during the current fiscal year. The company also noted that a potential reduction in the Goods and Services Tax (GST) on cement, combined with sustained government expenditure on infrastructure, could help maintain demand momentum.
However, Ambuja cautioned that the industry continues to face cost pressures arising from global supply chain disruptions. Elevated prices of key inputs and logistics costs remain a challenge for cement manufacturers. The company said major industry players are actively managing rising expenses linked to coal, petcoke and freight, along with the impact of a weaker rupee on imported raw materials and fuel.
Against this backdrop, Ambuja Cements said it has intensified its focus on cost optimisation, operational efficiency and disciplined capital allocation. The company is pursuing a balanced expansion strategy through both greenfield and brownfield developments to strengthen its market presence across multiple regions.
During FY2025-26, Ambuja increased its installed cement manufacturing capacity to 109 million tonnes per annum from 89 MTPA in the previous year. The expansion was driven by the integration of acquired businesses and the execution of ongoing capacity enhancement projects. The company said it remains on course to increase total capacity to 119 MTPA by FY2026-27.
According to the annual report, the immediate priority is to stabilise operations and improve capacity utilisation across its expanded manufacturing network. Capacity additions are being implemented in phases to align with project pipelines and regional demand conditions, allowing for efficient deployment of capital and timely utilisation of new facilities.
The company has also advanced its consolidation strategy by merging Sanghi Industries and Penna Cement Industries into Ambuja Cements. These integrations form part of its 'One Cement Platform' initiative, which seeks to bring various cement assets under a unified operating structure.
Ambuja further announced plans to amalgamate ACC and Orient Cement with the company. The firm stated that the consolidation is intended to strengthen operational and financial synergies, simplify the corporate structure and create a pan-India building materials platform with greater scale and competitiveness.
The Adani Group entered the cement sector in September 2022 through the acquisition of controlling stakes in Ambuja Cements and ACC from Holcim in a USD 6.4 billion transaction. Since then, the company has expanded its footprint through a series of acquisitions, including Penna Cement, Sanghi Industries and Orient Cement.
Ambuja currently ranks as India's second-largest cement producer, behind UltraTech Cement, which has a consolidated production capacity exceeding 200 MTPA.
Source - PTI
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