Mumbai NCL Industries Strengthens Cement Production Growth
NCL Industries has reported a 5 per cent year-on-year increase in cement production and dispatches for the third quarter of fiscal 2026, signalling modest recovery in core building materials amid uneven demand across its diversified operations. The quarterly uplift reflects sustained infrastructure and housing activity, but contrasting trends in allied segments underscore broader market pressures.
According to regulatory filings, cement output at the company’s plants rose to nearly 695,000 tonnes for the quarter ending 31 December 2025, up from around 661,000 tonnes a year earlier. Dispatch volumes, a key gauge of market uptake, expanded in similar measure, pointing to steady absorption in regional supply chains. Industry analysts note that cement remains the backbone of NCL’s portfolio, supported by strong public and private investment in infrastructure and residential projects across India. National demand forecasts have been revised higher, with construction activity expected to sustain mid-single-digit growth as housing and public works propel consumption.
Yet the company’s broader materials business painted a divergent picture. Production of cement-bonded particle boards and ready-mix concrete declined sharply during the period, suggesting project delays and inventory adjustments among builders. Market sources indicate that smaller developers are deferring non-critical work in the face of tighter credit and elevated input costs, affecting demand for ancillary products. For urban centres navigating rapid expansion, the health of cement and allied construction markets is a bellwether of overall development momentum. Cement is a foundational input for housing, transport corridors and climate-resilient infrastructure. A consistent rise in volumes typically signals robust pipeline activity, particularly in affordable housing and urban renewal projects.
Nonetheless, the drop-off in non-cement segments at NCL spotlights supply-chain and demand mismatches that could dampen near-term growth. Ready-mix concrete sales, for example, are sensitive to project phasing; extended lead times or seasonal slowdowns often translate into lower consumption even when core cement sales hold firm. A senior industry planner says this pattern reflects a wider recalibration in construction markets, where developers prioritise essential structural work over fit-out and finish materials. “Where there is clarity on funding and approvals, cement consumption is resilient. Ancillary product demand tends to lag in uncertain cycles,” the planner notes.
Looking ahead, stakeholders emphasise the need for calibrated capacity expansion and improved demand forecasting to align production with evolving project cycles. With India’s cement sector preparing for capacity additions in the coming years, driven by infrastructure and housing objectives, firms that bridge core output stability with diversified product resilience are better placed to support equitable urban growth.
