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UltraTech Cement — Q2 FY26
UltraTech Cement reported a solid Q2 FY26 with consolidated sales volume exceeding 31 million tons, driven by strong demand in rural markets (13% growth) and successful brand conversion of acquired assets (ICL 31%, Kesoram 55%).
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UltraTech Cement reported a solid Q2 FY26 with consolidated sales volume exceeding 31 million tons, driven by strong demand in rural markets (13% growth) and successful brand conversion of acquired assets (ICL 31%, Kesoram 55%). The UltraTech brand grew 13.2% YoY. EBITDA per ton for existing assets stood at INR 966, while ICL and Kesoram contributed INR 386 and INR 755 respectively. One-off costs (maintenance, advertising, staff) impacted per-ton EBITDA by ~INR 200, but ~INR 100 is expected to reverse in Q3. Management guided for 200 MTPA capacity by FY26 end and announced 22.8 MTPA expansion in North/West with low CapEx. Fuel costs are stable, and GST benefits are expected to boost premium cement demand. Risk: potential oversupply in northern markets as peers expand, though management remains confident in market share gains.
अल्ट्राटेक सीमेंट ने दूसरी तिमाही में 3.1 करोड़ टन से अधिक बिक्री की, जो गाँवों में मजबूत माँग (13% बढ़ोतरी) और नई कंपनियों (ICL और Kesoram) के सीमेंट को अपने ब्रांड में बदलने से हुआ। अल्ट्राटेक ब्रांड की बिक्री पिछले साल से 13.2% बढ़ी। पुराने कारखानों से प्रति टन कमाई 966 रुपये रही, जबकि ICL से 386 और Kesoram से 755 रुपये मिले। मरम्मत, विज्ञापन और कर्मचारी खर्च के कारण प्रति टन कमाई पर 200 रुपये का असर पड़ा, लेकिन अगली तिमाही में 100 रुपये वापस मिलने की उम्मीद है। कंपनी का लक्ष्य साल के अंत तक 20 करोड़ टन सालाना उत्पादन क्षमता का है और उत्तर/पश्चिम में नए कारखाने लगा रही है। ईंधन की कीमतें स्थिर हैं और GST लाभ से प्रीमियम सीमेंट की माँग बढ़ेगी। जोखिम: उत्तर में प्रतिस्पर्धियों के विस्तार से अधिक आपूर्ति हो सकती है, लेकिन कंपनी को अपनी हिस्सेदारी बढ़ने का भरोसा है।
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Potential oversupply in northern markets
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Sales Volume
31M tons
+6.8% YoY
Consolidated sales volume for Q2 FY26, including ICL and Kesoram in base.
UltraTech Brand Growth
13.2%
+13.2% YoY
Growth of UltraTech brand sales YoY, driven by conversion of acquired assets.
Rural Market Growth
13%
+13% YoY
UltraTech's rural market sales growth, indicating strong demand from individual home builders.
ICL Brand Conversion
31%
+31pp vs start
Percentage of India Cements sales converted to UltraTech brand, targeting 40% by Dec quarter.
What Changed vs Last Quarter
NEW
Capacity target of 200 MTPA by FY26 end
UltraTech will exit the current financial year with 200 million tons of cement capacity.
NEW
Next phase expansion of 22.8 MTPA in North and West
Incremental capacity of 22.8 million tons (18 MTPA North, 4.8 MTPA West) to be completed by FY28-29, largely brownfield.
NEW
ICL EBITDA per ton to reach INR 1,000 post expansion
India Cements assets will generate EBITDA per ton of INR 1,000 and net debt/EBITDA of ~0.5x after expansions are operational.
NEW
Kesoram EBITDA per ton to cross INR 1,000 by June 2026
Kesoram assets expected to achieve EBITDA per ton of INR 1,100-1,200 by end of June 2026 after WHRS and brand conversion.
DROPPED
Double-digit volume growth in FY26
Management expects consolidated volume growth of over 10% in FY26, driven by new capacities and market demand.
DROPPED
India Cements EBITDA per ton to exceed INR 1,000 by FY28
Targeting EBITDA per ton above INR 1,000 for India Cements by fiscal 2028, up from current INR 400.
DROPPED
Capex of ~INR 10,000 crore in FY26
Capital expenditure for the current fiscal year is expected to be around INR 10,000 crore.
DROPPED
Next phase of organic growth to be announced by end of FY26
The company plans to present the next phase of organic capacity expansion to the board by end of calendar 2025 or fiscal 2026.
NEW RISK
Potential oversupply in northern markets
Multiple peers (JK, Dalmia, JSW) are also expanding in the North, which could lead to pricing pressure.
NEW RISK
One-off cost impact may not fully reverse
Management expects ~INR 100/ton reversal in Q3, but some costs (e.g., maintenance) may persist at lower levels.
RISK GONE
Pricing pressure in north and west regions
Management noted that north and west regions have not seen price increases as they are already well-priced, posing a risk to margins if competition intensifies.
RISK GONE
Integration challenges for India Cements
Analyst raised concerns about brand transition and cost parity. Management deflected on brand strategy, stating 'jury is still out' on full rebranding.
RISK GONE
Demand seasonality and monsoon impact
Q1 volumes were affected by heat waves and monsoons; full-year growth depends on strong H2 performance, which is uncertain.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25, Q4 FY25
Management expects consolidated volume growth of over 10% in FY26, driven by new capacities and market demand.
Mentioned in Q1 FY26, Q2 FY25, Q3 FY25
Management noted that north and west regions have not seen price increases as they are already well-priced, posing a risk to margins if competition intensifies.
Mentioned in Q1 FY26, Q3 FY25
Capital expenditure for the current fiscal year is expected to be around INR 10,000 crore.
Mentioned in Q1 FY25, Q4 FY25
The company targets cost savings of over ₹300 per ton on existing UltraTech operations by the end of FY27, with ₹86 already achieved in FY25.
Mentioned in Q1 FY26, Q4 FY25
Targeting EBITDA per ton above INR 1,000 for India Cements by fiscal 2028, up from current INR 400.
Fast read
Guidance and risk preview
UltraTech will exit the current financial year with 200 million tons of cement capacity.
Multiple peers (JK, Dalmia, JSW) are also expanding in the North, which could lead to pricing pressure.
View Risks →