UltraTech Cement , India's leading cement manufacturer, has recently made headlines with two significant developments: a favorable tax appeal outcome and the assignment of ESG ratings.

Tax Appeal Victory

UltraTech Cement has successfully won an appeal against a tax demand, as confirmed by the company. The legal victory stems from an order passed by the Joint Commissioner (Appeals), GST & Central Excise, Rajkot. The appellate authority has set aside the demand raised under Section 74 of the CGST Act, 2017, and remanded the matter for fresh adjudication under Section 73 of the same Act.

The original tax dispute involved an alleged ineligible Input Tax Credit (ITC) availed and utilized on invoices issued by a vendor who reportedly did not file GSTR-3B and failed to pay tax to the Government. The initial demand, as disclosed by UltraTech Cement on May 9, 2024, was for GST amounting to Rs. 14,63,754.00, along with interest and an equivalent penalty.

Importantly, UltraTech Cement has stated that this legal outcome will not have a material financial impact on its operations. This reassurance aligns with the company's disclosure that there is no significant financial implication resulting from this tax appeal resolution.

ESG Ratings Assignment

In a separate development, UltraTech Cement has received Environmental, Social, and Governance (ESG) ratings from Crisil ESG Ratings & Analytics Limited, a SEBI registered Category-1 ESG Ratings Provider. For the fiscal year 2024-25, the company has been assigned the following ratings:

These ratings were independently issued by Crisil ESG Ratings based on data pertaining to FY2024-25 and other publicly available information about UltraTech Cement. The assignment of these ratings reflects the company's performance and initiatives in environmental, social, and governance aspects.

UltraTech Cement's proactive disclosure of both the tax appeal outcome and the ESG ratings demonstrates its commitment to transparency and compliance with regulatory requirements. As the company continues to navigate legal and sustainability challenges, these developments provide stakeholders with valuable insights into its operational and governance practices.

UltraTech Cement , India's largest cement manufacturer, has announced a significant move in its investment portfolio. The company's Committee of Directors and Officers has approved the sale of its 6.49% stake in The India Cements Limited (ICEM) through a stock exchange offer. This decision is part of UltraTech's strategic portfolio realignment initiative.

Details of the Stake Sale

According to the disclosure made by UltraTech Cement to the stock exchanges, the company plans to sell up to 2,01,12,330 equity shares of The India Cements. This represents 6.49% of the issued and paid-up equity share capital of ICEM. The sale will be conducted through an offer for sale mechanism on the stock exchange, in compliance with applicable laws and regulations set by the Securities and Exchange Board of India (SEBI) and the stock exchanges.

Strategic Move

UltraTech Cement describes this divestment as part of a strategic portfolio realignment. This move suggests that the company is reassessing its investments and focusing on core business strategies. By divesting its stake in The India Cements, UltraTech may be looking to streamline its portfolio and potentially reallocate resources to areas that align more closely with its long-term objectives.

Timing and Execution

The decision to sell the stake was made during a meeting of UltraTech's Committee of Directors and Officers, which commenced at 3:15 p.m. and concluded at 3:35 p.m. on August 20, 2025. The quick decision-making process indicates that this move was likely part of a well-considered strategy rather than a sudden development.

Market Implications

This sale could have implications for both UltraTech Cement and The India Cements in the stock market. Investors will be watching closely to see how this transaction affects the share prices of both companies and whether it signals any broader trends in the cement sector.

UltraTech's Recent Performance

UltraTech Cement has been performing strongly in recent times. In the first quarter of the fiscal year 2026, the company reported:

All figures in Rs. crore

Expansion and Capacity

UltraTech has been actively expanding its capacity. The company added 3.5 MTPA of grey cement capacity in the first quarter of FY26, bringing its total capacity to 192.26 MTPA. This expansion aligns with UltraTech's goal to become the largest cement-selling company in the world outside of China.

As the cement industry continues to evolve, UltraTech Cement's decision to divest its stake in The India Cements marks a significant step in its corporate strategy. Stakeholders will be keenly observing how this move fits into UltraTech's broader plans for growth and market leadership in the coming years.