New Delhi, April 18 -- The Indian cement industry is set for a period of healthy demand in the first quarter of FY27, even though rising input costs threaten to weigh on overall profitability.

"We expect demand to be healthy in Q1FY27E. We are neutral on the cement space in view of a likely hit to profitability despite cement price hikes," according to a sector update report by Nuvama Institutional Equities.

Despite a series of price hikes initiated in early April across various regions, the report maintained a cautious outlook on the sector's financial margins. The industry currently navigates a complex landscape where robust government infrastructure spending offsets a significant slowdown in the residential real estate market.

The r...