New Delhi, Feb. 23 -- The outlook for the cement sector remains positive, supported by healthy demand trends, improving prices and higher capital expenditure allocation in the FY27 budget, which is expected to boost demand further, according to a report by Nuvama.

The report stated that cement demand and prices showed improvement in January 2025, indicating strengthening momentum in the sector.

This improvement came despite a sharp decline in capital expenditure by the central government and central public sector enterprises (CPSEs), which plunged around 25 per cent and 40 per cent year-on-year, respectively, in January 2026.

However, the report highlighted that state government capex remained supportive, expanding around 15 per cent y...