India’s cement sector could see a clear demand recovery in the second half of the year, with growth of 6-8%, and industry pricing may “surprise positively” in calendar year 2026, according to Indrajit Agarwal, Senior Research Analyst at CLSA, speaking at the CITIC CLSA India Forum 2025.

Agarwal said cement demand weakened for five to six quarters due to elections, monsoons and softer consumer sentiment. But the September quarter was better than expected. “Demand was a tad better than our initial expectation,” he said, adding that companies also reported steady government capex trends.

With drier months ahead, Agarwal expects construction activity to pick up. “We have almost a six-month runway of relatively drier weather,” he said. He forecasts H2 demand growth between 6-8%, driven by lar

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