ACC vs UltraTech Cement Q4 FY26

AC

ACC

Q4 FY26 · Diversified

Ambuja Cement reported a disappointing Q4 FY26 with cost per tonne hitting ₹4,500, well above the earlier target of ₹4,000. Full-year EBITDA per tonne was ₹887, up 12% YoY, but Q4 saw significant cost inflation from packaging, fuel, and higher repairs at acquired assets (Sanghi at 57% utilization, Penna at 46%). Management admitted a 3-6 month delay in efficiency capex and guided for only ₹250/tonne cost reduction in FY27, implying average cost of ~₹4,250. Volume guidance of 80 million tonnes (8% growth) relies on stabilizing acquired assets and commissioning 10mt new capacity, but industry demand is expected to grow only 5-5.5%. Capex is being recalibrated to ₹6,000-6,500 crore for FY27, with a reset in ambition and timeline for the 140mt capacity target. Key risk: inability to pass on cost increases due to soft demand, further pressuring margins.

Guidance read

FY27 volume target of 80 million tonnes: Management expects 8% volume growth to ~80mt, driven by stabilization of acquired assets and new capacity commissioning. Cost reduction of ₹250/tonne in FY27: Targeting average cost reduction of ₹250/tonne in FY27 from Q4 FY26 exit cost of ₹4,500, implying ~₹4,250 average. Capex of ₹6,000-6,500 crore for FY27: Capital expenditure guided at ₹6,000-6,500 crore, with focus on completing ongoing projects and debottlenecking. Capacity to reach 119 million tonnes by FY27 end: Cement capacity expected to increase to 119mt by end of FY27, including 10mt of new grinding capacity.

Risk read

Key risks include Cost inflation from global factors — West Asia war led to packaging cost spikes and fuel cost increases, adding ~₹250/tonne in Q4; further escalation could derail cost reduction targets.; Soft demand limiting price hikes — Management noted demand is soft and price increases of only ₹10-15/bag have been achieved, insufficient to offset cost inflation.; Execution delays in efficiency capex — Management admitted 3-6 month delays in efficiency projects, which could push cost savings beyond FY27.; Acquired asset underperformance — Sanghi and Penna plants have low utilization (57% and 46%) and higher maintenance costs, impacting overall margins..

Promise ledger

Scorecard data is being built as historical quarters are processed.

UL

UltraTech Cement

Q4 FY26 · Manufacturing

UltraTech Cement delivered a strong Q4 FY26, with consolidated sales volumes crossing 44 million tons and PAT of ₹3,000 crore for the quarter. The company achieved 200 million tons of cement production capacity, a full year ahead of target, driven by disciplined organic growth and timely acquisitions. Brand migration for India Cements and Kesam was completed a quarter early, with India Cements' EBITDA per ton improving sequentially to ₹497. Management guided for sustainable volume growth of 7-8% and double-digit growth in FY27, with annual capex of ₹8,000-10,000 crore. Key risks include West Asia conflict-driven cost inflation (bags, fuel, forex) and potential demand slowdown from rising input costs across building materials.

Guidance read

Volume growth of 7-8% sustainable, double-digit in FY27: Management expects sustainable volume growth of 7-8% per annum, with FY27 targeting double-digit growth driven by structural demand. Annual capex of ₹8,000-10,000 crore for foreseeable future: Capex will continue at ₹8,000-10,000 crore per year for cement capacity expansion beyond 240 million tons. India Cements EBITDA per ton to exceed ₹1,000 by FY28: Cost improvement capex and price increases will drive India Cements' EBITDA per ton above ₹1,000 by end of FY28. Clinker conversion ratio target of 1.54x by FY28: Target to improve clinker conversion ratio to 1.54x by FY28, enhancing profitability through blended cement.

Risk read

Key risks include West Asia conflict driving input cost inflation — Rising fuel, bag, and freight costs due to the conflict could pressure margins; management noted a ₹90 crore impact on bags in March alone.; Forex volatility from rupee devaluation — Rupee devaluation led to a mark-to-market hit of ~₹130-140 per ton on foreign currency borrowings, impacting EBITDA.; Demand slowdown from rising building material costs — Steel, PVC, and other materials have become expensive, potentially affecting overall construction demand, though management sees no slowdown yet.; Legal hurdles delaying India Cements merger — Inherited legal cases may delay full integration of India Cements; management is cautious about risks to UltraTech's balance sheet..

Promise ledger

Scorecard data is being built as historical quarters are processed.