Cement makers to invest US$ 13.53 billion over three years: Crisil Ratings
- IBEF
- November 13, 2025
India’s top cement producers are set to invest about Rs. 1,20,000 crore (US$ 13.53 billion) in capital expenditure between FY26 and FY28, nearly 50% higher than the previous three years, according to Crisil Ratings. The investments will focus primarily on capacity expansion, with the 17 companies covered in the report representing 85% of the country’s total 668 million tonnes (MT) of installed capacity as of March 2025. Crisil noted that capex intensity will remain steady at 0.8-0.9 times, keeping external debt reliance limited, and credit metrics are expected to remain stable with the net debt-to-Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ratio at 1.1 times, consistent with the past three fiscal years.
The report highlighted that around 10-15% of the planned investment will go towards sustainability and cost-efficiency projects, such as renewable energy adoption and waste heat recovery, helping companies maintain profitability amid rising input costs. The cement industry is projected to add 160-170 MT of new grinding capacity by FY28, compared to 95 MT in the last three years, driven by strong demand and high capacity utilisation. About 65% of this addition will come from brownfield expansions, which require lower capital and face fewer regulatory hurdles than greenfield projects. Most spending will be funded through internal accruals, ensuring stable leverage and financial resilience across major cement producers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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