UltraTech Cement , India's largest cement manufacturer, has unveiled its strategic plans for fiscal year 2026, aiming for double-digit growth backed by significant capacity additions and anticipated infrastructure demand.

Expansion Plans and Capital Expenditure

The company has announced a substantial capital expenditure plan of ₹10,000.00 crore for FY26. This investment is expected to fuel UltraTech's capacity expansion initiatives, positioning the company to meet the growing demand in India's infrastructure sector.

Recent Acquisitions Showing Promise

UltraTech's recent strategic moves in the cement industry are beginning to bear fruit. The company's acquisitions of India Cements and Kesoram Industries are reportedly showing improving performance. These acquisitions are likely to contribute to UltraTech's market presence and operational capabilities.

Cost Reduction Initiatives

In a bid to enhance profitability, UltraTech has set an ambitious target to reduce costs by ₹300.00 per tonne over the next three years. This cost optimization strategy could potentially boost the company's bottom line and improve its competitive position in the market.

Industry Outlook

The cement giant's optimistic growth targets for FY26 reflect a positive outlook for India's infrastructure sector. With the government's continued focus on infrastructure development, UltraTech appears well-positioned to capitalize on the expected increase in cement demand.

Conclusion

UltraTech Cement's strategic initiatives, including capacity expansion, strategic acquisitions, and cost reduction efforts, underscore the company's commitment to maintaining its leadership position in India's cement industry. As the company moves forward with these plans, stakeholders will be keenly watching how these strategies translate into market performance and financial results in the coming years.

UltraTech Cement , India's largest cement manufacturer, announced robust financial results for the fourth quarter and full fiscal year 2024-25, demonstrating resilience and strategic growth amid a dynamic market environment.

Q4 FY25 Highlights

• Consolidated net sales reached Rs. 23,063.00 crores, a 13% increase year-over-year
• Profit after tax (PAT) grew by 10% year-over-year to Rs. 2,482.00 crores
• Domestic grey cement volumes increased by 10% year-over-year
• Sales volumes increased by 17% to 41.02 million tonnes
• Operating EBITDA per tonne improved to Rs. 1,270.00, up 7% year-over-year and 32% quarter-over-quarter (excluding acquired assets)

Full Year FY25 Performance

Operational Highlights

• Capacity utilization: 89% in Q4, 78% for the full year
• Energy costs reduced by 14% year-over-year
• Fuel costs decreased to Rs. 881.00 per tonne in Q4 FY25 from Rs. 1,025.00 per tonne in Q4 FY24

Expansion and Acquisitions

• Commissioned 17.40 MTPA capacity across India during FY25
• Domestic grey cement capacity increased to 183.36 MTPA
• Global capacity now stands at 188.76 MTPA (including 5.4 MTPA overseas capacity)
• Completed acquisition of The India Cements Limited (ICEM), increasing shareholding to 81.49%
• Finalized acquisition of Kesoram Industries Limited's cement business
• Targets 211 MTPA domestic capacity by FY27

Sustainability Milestone

• Commissioned over 1 Gigawatt of renewable energy capacity for captive use
• Added 269 MW of renewable power in Q4
• Total green energy capacity reached 1.363 GW, covering about 46% of current power needs

Dividend Announcement

• Board recommended a dividend of 775% at Rs. 77.50 per equity share
• Total dividend aggregates to Rs. 2,283.75 crores for FY25

Future Outlook

• Aims for double-digit organic volume growth in FY26
• Expects sustainable volume growth of 7-8%
• Growth driven by government focus on infrastructure and housing projects
• Increased rural and urban demand anticipated
• Optimistic long-term outlook for the cement sector in India

UltraTech Cement continues to demonstrate its commitment to growth, sustainability, and supporting India's infrastructure development needs.