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UltraTech Cement — Q4 FY26
UltraTech delivered a landmark Q4 FY26, crossing 200 million tons of cement production capacity in India, a first for any company outside China.
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UltraTech delivered a landmark Q4 FY26, crossing 200 million tons of cement production capacity in India, a first for any company outside China. Consolidated sales volumes hit a record 44 million tons, with UltraTech brand volumes growing 19% YoY. EBITDA per ton (ex-acquired assets) reached ₹1,296, up from ₹1,225 in Q4 FY25. India Cements' EBITDA per ton improved to ₹497, with full brand migration completed a quarter early. The board declared a dividend of ₹240 per share, reflecting confidence in cash flows. Management guided for 7-8% sustainable volume growth and double-digit growth in FY27, with annual capex of ₹8,000-10,000 crore. Key risks include West Asia conflict-driven cost inflation (fuel, bags, forex) and potential demand disruption from elections or heatwaves. However, UltraTech's scale, green energy platform (43% of power from renewables), and cost efficiency programs position it well to navigate headwinds.
अल्ट्राटेक ने वित्त वर्ष 2026 की चौथी तिमाही में बड़ी उपलब्धि हासिल की। भारत में इसकी सीमेंट बनाने की क्षमता 20 करोड़ टन पार कर गई, जो चीन के बाहर किसी भी कंपनी के लिए पहली बार है। कुल बिक्री 4.4 करोड़ टन रही, जो रिकॉर्ड है। अल्ट्राटेक ब्रांड की बिक्री पिछले साल से 19% बढ़ी। कमाई (EBITDA) 1,296 रुपये प्रति टन हुई, जो पिछले साल 1,225 रुपये थी। कंपनी ने 240 रुपये प्रति शेयर लाभांश देने का ऐलान किया। आने वाले साल में 7-8% बढ़ोतरी का अनुमान है। जोखिमों में पश्चिम एशिया संघर्ष से लागत बढ़ना और चुनाव या गर्मी से मांग कम होना शामिल है।
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West Asia conflict driving cost inflation
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Cement production capacity
200 million tons
+33% vs 150M tons in 2024
UltraTech became the first company outside China to achieve 200M tons capacity in a single country.
Consolidated sales volume
44 million tons
+19% YoY (UltraTech brand)
Record quarterly volume driven by strong demand and full brand migration of acquired assets.
EBITDA per ton (ex-acquired)
₹1,296
+5.8% YoY
Improved from ₹1,225 in Q4 FY25, reflecting cost efficiencies and better realizations.
Green energy share
43%
+3pp YoY
43% of power needs met from renewable sources, targeting 85% by FY30.
What Changed vs Last Quarter
NEW
Volume growth of 7-8% per annum sustainable
Management expects sustainable volume growth of 7-8% per annum driven by urbanization, infrastructure, and housing demand.
NEW
Double-digit volume growth in FY27
For fiscal 2027, UltraTech targets double-digit volume growth.
NEW
Annual capex of ₹8,000-10,000 crore for foreseeable future
UltraTech plans to invest ₹8,000-10,000 crore annually in capex, including expansion beyond 240 million tons.
NEW
Cost efficiency program to deliver >₹300 per ton by FY28
The ongoing cost efficiency program is expected to deliver more than ₹300 per ton in savings by fiscal 2028, up from ₹185 already achieved.
DROPPED
Q4 FY26 capacity addition of 8-9 million tons
Approximately 8-9 million tons of new capacity will be commissioned in Q4 FY26, part of the ongoing expansion.
DROPPED
FY27 capacity addition of 12 million tons
12 million tons of capacity to be added in fiscal 2027, with the remainder of the 22 million ton phase in FY28.
DROPPED
Net debt/EBITDA to reach 0.89x by end of FY26
Management expects net debt/EBITDA to improve from 1.08x to 0.89x by March 2026, driven by cash flows.
DROPPED
Cable & wires product launch in Q3 FY27
The new cable and wires business is on schedule for product launch in the October-December 2026 quarter.
NEW RISK
West Asia conflict driving cost inflation
Rising fuel, pet coke, and bag costs due to the West Asia conflict could pressure margins. Management noted a potential impact on fuel and freight costs.
NEW RISK
Forex volatility from rupee depreciation
The rupee's depreciation to ₹94.85/USD caused a non-cash mark-to-market hit of ~₹130 crore on foreign currency borrowings, impacting EBITDA.
NEW RISK
Demand disruption from elections and heatwaves
Analyst raised concern about potential demand slowdown due to elections in Bengal and Tamil Nadu and extreme heat. Management acknowledged a temporary slowdown in the last 15 days of the quarter.
NEW RISK
Cement industry fragmentation limiting price hikes
Analyst questioned why cement industry struggles to pass on cost hikes compared to steel and PVC. Management attributed it to industry fragmentation, implying pricing power remains constrained.
RISK GONE
Cost inflation from petcoke/coal and rupee depreciation
Management noted cost increases in petcoke and coal, and potential impact from rupee depreciation, which could pressure margins if not passed through.
RISK GONE
South India pricing volatility despite consolidation
Analyst questioned why South India pricing remains volatile despite industry consolidation; management attributed it to demand but acknowledged historical volatility.
RISK GONE
ED case attached to India Cements assets
An Enforcement Directorate case has attached two assets of India Cements, potentially delaying non-core asset sales and cash generation.
RISK GONE
Execution delays in capacity expansion
Management admitted possible delays of up to a quarter in commissioning new capacity, which could impact volume growth targets.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q2 FY25, Q2 FY26
Petcoke prices have moved up; though management expects no net inflation, spot purchases could increase costs.
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 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 Q2 FY25, Q3 FY26
Management admitted possible delays of up to a quarter in commissioning new capacity, which could impact volume growth targets.
Mentioned in Q3 FY26, Q4 FY25
12 million tons of capacity to be added in fiscal 2027, with the remainder of the 22 million ton phase in FY28.
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Guidance and risk preview
Management expects sustainable volume growth of 7-8% per annum driven by urbanization, infrastructure, and housing demand.
Rising fuel, pet coke, and bag costs due to the West Asia conflict could pressure margins.
View Risks →