India’s Dalmia Bharat Limited has signalled confidence in the domestic construction cycle, forecasting mid-single digit cement demand growth in the fiscal year 2025-26 and aligning its strategic capital plans to capture broad-based market opportunities. The cement maker — among the country’s largest — is also positioning itself for rapid capacity expansion as infrastructure and urban development solidify demand across regions.
In its latest investor communications, the company reiterated expectations that cement volumes will grow about 6 per cent in FY26, supported by resilient housing demand and sustained government capital expenditure on roads, rail and urban infrastructure projects. This anticipated uplift slightly outpaces broader industry forecasts of 6-7.5 per cent, underlining Dalmia Bharat’s belief in an accelerating recovery of construction activity.Executives have linked this demand outlook with more optimistic macroeconomic signals, including projections that India’s gross domestic product could expand by roughly 7.3 per cent, which would indirectly bolster demand for building materials. Industry analysts say that strong economic momentum tends to translate into higher cement consumption as both public and private capex expand, particularly in Tier-1 and Tier-2 urban clusters.
To support this anticipated growth trajectory, Dalmia Bharat has outlined an ambitious capacity expansion plan, aiming to scale installed cement production to 110-130 million tonnes by 2031. The near-term phase of this programme targets incremental additions to reach approximately 75 million tonnes by FY28, reflecting a multi-year strategy to deepen market penetration and improve regional supply coverage.This expansion blueprint is anchored on strategic investments planned across key states, particularly in Western and Eastern India, where rising infrastructure activity and housing demand are creating pockets of robust cement consumption. Earlier capacity increases in the Eastern region have strengthened the company’s foothold there, while new projects in Maharashtra and Karnataka aim to balance its pan-India footprint.
Alongside physical capacity growth, Dalmia Bharat’s management has emphasised financial discipline and conservative leverage, signalling incentives to align cost-efficiency with volume growth. Recent investor guidance highlighted a ₹200 crore incentive run rate target, reflecting efforts to maintain margin stability amid rising input costs and competitive pressures.
Urban planners and market strategists view Dalmia Bharat’s dual focus on demand growth and capacity expansion as emblematic of a broader sector trend where producers are recalibrating portfolios to sustain long-term growth while navigating short-term market cyclicality. Successful execution of its expansion and operational plans could make the company a bellwether for how India’s cement industry supports urbanisation and infrastructure priorities in a lower-emission, resilient growth environment.
