UltraTech Cement , India's leading cement manufacturer, is poised to achieve a significant milestone in its growth trajectory. The company is set to cross the 200 million tonnes per annum (MTPA) capacity mark by the end of this fiscal year, a full year ahead of its original FY27 timeline. This announcement was made by Chairman Kumar Mangalam Birla during the company's 25th Annual General Meeting (AGM).

Rapid Capacity Expansion

UltraTech Cement has been on an aggressive expansion path, adding a substantial 42.6 MTPA of capacity in FY25 alone. This expansion was achieved through a combination of organic growth (16.3 MTPA) and strategic acquisitions (26.3 MTPA), including stakes in India Cements and Kesoram Industries' cement business. As of March 2025, the company's consolidated capacity stood at an impressive 188.8 MTPA.

Global Leadership

With this accelerated growth, UltraTech Cement is positioning itself to become the largest cement-selling company globally, outside of China. The company's extensive network now includes:

• 34 integrated units
• 30 grinding units
• 9 bulk terminals across India

This network covers more than 80% of the country's geography through over 145,000 channel partners.

Financial Performance

The company's growth strategy is backed by strong financial performance. In Q1 FY26, UltraTech reported:

Dividend Announcement

Reflecting the company's robust performance, the Board of Directors has proposed a dividend of Rs. 77.50 per equity share of Rs. 10 each, totaling Rs. 2,283.75 crore.

Sustainability Initiatives

UltraTech Cement is not just focusing on growth but also on sustainable practices. Key sustainability highlights include:

• Achieving 1 GW of installed renewable energy capacity for captive use
• Reducing net CO₂ emissions to 549 kg per tonne, down from 632 kg in 2017
• Becoming 4.9 times water positive, managing over 120 million cubic meters of water in FY25
• Utilizing over 44 million tonnes of recycled and alternative raw materials in cement production

Market Outlook

Chairman Birla noted India's projected GDP growth of 6.5% in FY25, with the March quarter showing a robust 7.4% growth driven by construction and manufacturing sectors. This positive economic outlook bodes well for the cement industry and UltraTech's growth prospects.

As UltraTech Cement continues its expansion and sustainability efforts, it remains committed to being a force for nation-building, aligning its vision with India's aspirations for 2047 - the centenary of the country's independence.

UltraTech Cement shares closed 0.7% higher at Rs 12,855.70 on the BSE, reflecting investor confidence in the company's growth strategy and market position.

UltraTech Cement , India's leading cement manufacturer, has reported a strong start to the fiscal year, with consolidated volume growth of 9.7% year-on-year in the first quarter. The company's performance, which includes the recently acquired Kesoram Industries' cement business, signals a positive outlook for the cement sector amid ongoing infrastructure development in the country.

Volume Growth and Market Performance

UltraTech achieved total sales of 34.64 million tons during the quarter, with the UltraTech brand specifically growing by 6.5% year-on-year. The company's flagship brand has shown resilience and market acceptance, even as it integrates new acquisitions into its fold.

India Cements, another recent addition to UltraTech's portfolio, contributed 2.18 million tons to the overall volume. The management expressed confidence in improving India Cements' operations, targeting an EBITDA of over ₹1,000.00 per ton by FY28 through strategic capex programs.

Pricing and Regional Performance

Cement prices saw a 2.2% sequential increase, with the South and East regions showing maximum gains. This price improvement, coupled with volume growth, indicates a strengthening market position for UltraTech across its operational territories.

Operational Highlights and Future Outlook

UltraTech's management highlighted several key operational improvements:

1. India Cements Integration: The company is rapidly integrating India Cements operations, which recorded an EBITDA of ₹400.00 per ton after accounting for limestone royalty of ₹160.00 per ton in Tamil Nadu. UltraTech is focusing on efficiency improvements through capex in WHRS (Waste Heat Recovery System), speed modifications, and renewable energy installations.

2. Expansion Plans: UltraTech plans to add close to 10 million tons more capacity in the coming months.

3. Building Products Division Growth: Revenue from the building products division grew to ₹275.00 crores from ₹185.00 crores in the previous year, indicating diversification of revenue streams.

Financial Performance

The company reported that its finance costs decreased, with the average borrowing cost at 7%. This reduction in finance costs, coupled with volume growth and price improvements, suggests a positive trend in profitability.

Future Outlook

UltraTech's management expressed optimism about future growth prospects:

1. Double-Digit Growth Target: The company is targeting double-digit volume growth for the full year.
2. Capex Plans: UltraTech plans a capex of approximately ₹10,000.00 crores to support its growth initiatives.

Industry Outlook

The cement industry's growth is expected to be driven by continued government spending on infrastructure projects, including roads, ports, and urban development initiatives.

UltraTech Cement's strong performance in the first quarter and its ambitious growth plans underscore the company's confidence in India's infrastructure and construction sectors. As the company continues to integrate its acquisitions and expand capacity, it remains well-positioned to capitalize on the country's growing cement demand.