India Cements has announced a decisive turnaround in FY 2025-26, reporting a total income of ₹4,581 crores. The company returned to profitability following its integration with UltraTech, reversing prior losses. Improved operating margins, driven by higher sales volumes and disciplined cost management, signal a strengthened financial profile and readiness for future growth.
India Cements Reports Strong Turnaround in FY 2025-26
The India Cements Limited has declared a significant financial turnaround for the fiscal year ended March 31, 2026 (FY 2025-26). The company reported a total income of ₹4,581 crores, marking a substantial recovery and return to profitability after the integration into the UltraTech Cement and Aditya Birla Group family.
Key Financial Highlights and Performance Drivers
The reported income and improved operating margins are attributed to several key factors. These include stronger sales volumes, better realisations, and disciplined cost management. Sales volumes experienced robust growth, with double-digit increases in cement dispatches, as plants across Tamil Nadu and Andhra Pradesh saw higher utilisation rates. The strategic migration of products to trusted UltraTech brands, the adoption of best practices in operations, procurement, and logistics, and a sharp focus on cost efficiency have collectively transformed the company’s financial performance.
The fourth quarter of FY 2025-26, in particular, showed a significant profit increase, several-fold over the prior year, indicating a sustainable turnaround.
Strengthening the Foundation and Growth Outlook
Beyond financial metrics, the company has focused on building a stronger operational foundation. This involved deleveraging the balance sheet, modernising plants, and aligning its people, processes, and culture with global operating standards. With an installed capacity of 14.75 MTPA and a 70% capacity-utilisation rate, the company is positioned as leaner and more competitive for future growth phases.
Furthermore, India Cements has received multiple credit rating upgrades, achieving CARE AAA (Stable) for long-term instruments and CARE A1+ for short-term instruments.
Q1 FY27 Performance Update
In a brief update on the first quarter of FY 2027 (Q1 FY27), the company reported a strong improvement in performance. Driven by higher sales volumes, enhanced operational efficiencies, and disciplined cost management, sales volume grew 19% year-on-year to 2.58 million tonnes. EBITDA increased by 72% year-on-year to ₹159 crore. The company posted a consolidated Profit After Tax of ₹27 crore in Q1 FY27, a significant improvement from a loss of ₹133 crore in the corresponding quarter of the previous year.
Sustainability Initiatives
India Cements is integrating sustainability into its operations, aligning with globally recognised environmental, social, and governance practices. Key initiatives include increasing the production of blended cements, expanding the use of alternative fuels, and enhancing the use of industrial by-products like fly ash and slag. The company is also accelerating its transition to cleaner energy through investments in renewable power and Waste Heat Recovery Systems (WHRS).
Looking Ahead
The company anticipates future growth to be driven by profitable, sustainable, and inclusive expansion, supported by the Aditya Birla Group and favourable market tailwinds. The Chairman expressed gratitude to the Board, management, employees, dealers, customers, bankers, business partners, and shareholders for their contribution to the turnaround and continued faith in the company.
Source: BSE
