UltraTech Cement Limited , a prominent player in the Indian cement industry, has announced an employee incentive program through its Employee Stock Option and Performance Stock Unit Scheme 2022. The company's Nomination, Remuneration and Compensation Committee has approved the grant of 549 stock options to eligible employees, demonstrating its commitment to aligning employee interests with company performance.

Stock Option Details

Key Highlights

• Total Grant: 549 stock options, comprising 498 regular options and 51 Performance Stock Units (PSUs)
• Pricing: The exercise price for regular options is set at Rs. 11,999.00 per option, based on the market price as of October 29, 2025
• Vesting Schedule: Regular options will vest in three equal annual installments of 33% each, starting one year from the grant date
• PSU Specifics: PSUs are priced at Rs. 10.00 per unit and will vest 100% after a three-year period

This strategic move by UltraTech Cement aligns with industry practices for employee retention and motivation. By offering both regular stock options and performance-based units, the company creates a balanced incentive structure that rewards both loyalty and performance.

The differentiated pricing between regular options and PSUs reflects their distinct purposes. While the market-priced options provide a direct link to the company's stock performance, the nominal pricing of PSUs emphasizes long-term performance goals.

This grant under the UltraTech Cement Limited Employee Stock Option and Performance Stock Unit Scheme, 2022, underscores the company's focus on fostering a culture of ownership among its employees. It also demonstrates UltraTech's commitment to creating long-term value for both its employees and shareholders.

UltraTech Cement , India's leading cement manufacturer, has reported a mixed set of results for the second quarter, showcasing resilience in the face of challenging market conditions and ongoing expansion efforts.

Key Financial Highlights

• Consolidated net sales stood at Rs. 15,308.00 crores, down from Rs. 15,735.00 crores in the previous year.
• Profit after tax declined to Rs. 820.00 crores from Rs. 1,281.00 crores year-over-year.
• The company achieved a 68% capacity utilization, with domestic sales volume growing by 3% despite heavy rains.

Operational Performance

UltraTech demonstrated strong operational performance during the quarter:

• Energy costs decreased by 14%, while raw material costs increased by 1%.
• The company sold over 31 million tons of cement, showcasing robust demand despite adverse weather conditions.
• Rural markets delivered a growth of 13%, indicating strong demand from the individual homebuilder segment.

Strategic Initiatives and Expansion Plans

UltraTech continues to focus on strategic growth and sustainability:

• Raised US$500.00 million through a sustainability-linked loan.
• Completed acquisition of a 25% stake in RAKW, increasing total shareholding to 54.79%.
• Announced plans to expand capacity by 22.8 million tons, focusing on Northern and Western markets.
• The expansion is expected to be funded largely by internal accruals, with the company aiming to maintain a net debt to EBITDA ratio below 0.7x upon completion.

Brand Transition and Synergies

The company is making progress in integrating its recent acquisitions:

• 31% of India Cements' sales have been transitioned to the UltraTech brand.
• 55% of Kesoram Cement assets' output has been converted to UltraTech branding.
• The company aims to complete the brand transition for acquired assets by June 2026.

Future Outlook

UltraTech remains optimistic about future growth prospects:

• The company expects to exit the current financial year with a 200 million ton capacity.
• Management anticipates industry growth of around 7-8% CAGR in the long term.
• UltraTech aims to increase its market share from the current 28% to 32-33% in the coming years.

Challenges and Opportunities

While the quarter presented some challenges, including higher maintenance costs and increased advertising expenses, UltraTech sees significant opportunities ahead:

• The recent GST rate reduction is expected to boost demand for premium cement products.
• Ongoing and upcoming infrastructure projects, such as the Vadhavan Port and various data center initiatives, are likely to drive cement demand.

UltraTech Cement's Q2 results reflect the company's resilience and strategic focus on long-term growth. Despite short-term challenges, the company's robust expansion plans and strong market position suggest a positive outlook for the future.