HeidelbergCement India Limited has released the transcript of its earnings conference call held on May 29, 2026, discussing the audited financial results for the quarter and financial year ended March 31, 2026. The company reported a 25.5% increase in Profit After Tax (PAT) and a 19.8% rise in EBITDA year-on-year. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The management highlighted that the EBITDA per ton increased to INR584, up 10% from the previous year. Sales volume grew by 8.8% year-on-year. The company has repaid an interest-free loan of INR687 million and is now completely debt-free, with a cash and bank balance of INR4,037 million. The Board has recommended a dividend of INR7 per share for the financial year.

Operational Highlights

HeidelbergCement India continued its focus on sustainability, with 97% of cement production being blended. Alternative fuel usage increased by 3% year-on-year to reach 11% at the company level. The share of non-grid power exceeded 50% during the fiscal year. The company is also 4.8x water positive.

Financial and Strategic Updates

The company was declared the preferred bidder for the grant of two mining leases in Madhya Pradesh, securing reserves of 62 million tons and 105 million tons of cement-grade limestone. Regarding future demand, the management expects the cement industry in Central India to grow by 7% to 7.5% in FY27, driven by upcoming elections in Uttar Pradesh and robust domestic consumption. The company also noted that it is confident in passing on cost inflation, estimated between INR100 to INR150 per ton, to the market.

HeidelbergCement India Limited reported its audited financial results for the quarter and financial year ended 31 March 2026. For the full financial year, revenue rose 8.4% to ₹23,296 million, while net profit increased 25.5% to ₹1,340 million. However, quarterly net profit declined by 10.4% to ₹452 million compared to ₹504 million in the prior year. The company is now completely debt-free following the repayment of its final interest-free loan tranche of ₹687 million to the Government of Uttar Pradesh.

Q4 Financial Performance

Revenue from operations for the quarter increased to ₹6,462 million from ₹6,125 million in the corresponding prior-year period. This growth was driven by a 7.8% rise in sales volumes to 1,354 KT, partially offset by a decrease in prices. Despite the top-line growth, profitability faced pressure. EBITDA for the quarter stood at ₹879 million, a decrease of 3% year-on-year, with the EBITDA margin contracting to 13.6% from 14.8%. EBITDA per tonne also fell by 10% to ₹649.

Operational Highlights and Dividend

The company reported that its cash and bank balance aggregated to ₹4,037 million as of 31 March 2026. The Board of Directors recommended a dividend of ₹7 per equity share (70%) for the financial year ended 31 March 2026, subject to shareholder approval at the Annual General Meeting scheduled for 24 September 2026. The record date for determining dividend entitlement is fixed for 11 September 2026. Additionally, the company was declared the Preferred Bidder for the grant of 2 Mining Leases in Madhya Pradesh.

Board Decisions

The board approved the extension of Mr. Molugu Purnachander’s tenure as Director – Procurement for two years effective 2 July 2026. Additionally, the board appointed Mr. Gulshan Bajaj as Head – Internal Audit effective 1 August 2026, consequent to the retirement of Mr. Sumeet Bisarya from the services of the company effective 31 July 2026.

Management Commentary and Outlook

Management attributed the full-year EBITDA increase of 19.8% to a decrease in input costs, with EBITDA per tonne rising to ₹584. Alternative fuel usage increased by 3% year-on-year to 11%, and the share of non-grid power exceeded 50%. The company stated it operates on negative net operating working capital. Regarding the outlook, management expects cement demand in Central India to grow by 7% to 7.5% in FY27, supported by upcoming elections in Uttar Pradesh. The company anticipates a cost inflation impact of ₹100 to ₹160 per tonne in the near term, which it expects to pass on to the market. Capex for FY27 and FY28 is estimated at ₹100 crore and ₹120 crore respectively, including a new blending unit in Khandwa.