India Cements’ Q2 FY26 earnings call highlighted a sales volume exceeding 31 million tons despite heavy rains. UltraTech brand sales grew by 13.2%, with rural markets also experiencing a similar growth rate. The company is rapidly converting acquired brands to UltraTech. Expects completion no later than June ’26.
Q2 FY26 Financial Performance
Despite challenging weather conditions, India Cements achieved sales exceeding 31 million tons of cement in Q2 FY26. Brand UltraTech experienced a substantial growth of 13.2% during the quarter, driven by the rapid conversion of acquired assets. Rural markets also contributed strongly, delivering growth of about 13%.
Acquisition and Brand Transition
Significant progress has been made in integrating acquired entities. India Cements has completed 31% of their brand transition to UltraTech, and Kesoram has achieved 55% conversion by the end of the quarter. Full brand transition for these acquired assets is expected to be completed no later than June ’26, which will further boost performance and synergies.
Operational Efficiencies and Expansion
India Cements operated almost 56 kilns. There was a capex program of INR1,592 crores initiated for debottlenecking and efficiency improvements. This includes capacity expansion at Chennai and Rajasthan plants by 2.4 million tons at a cost of INR422 crores, expected to yield an IRR of over 20%. A further brownfield expansion will bring capacity to 17.55 million tons.
Future Outlook and Expansion Plans
The company is embarking on a new phase of growth, focusing on the North and West markets. This involves an incremental capacity addition of 22.8 million tons, comprising brownfield and greenfield expansions. Approximately 18 million tons is allocated for the Northern markets and 4.8 million tons for the Western markets. At the end of this expansion, clinker capacity is expected to reach 148 million tons.
Retail and RMC Business
The company’s retail footprint includes nearly 5,000 stores, branded as UBS stores, which contributed to 21% of total sales this quarter. The Ready Mix Concrete (RMC) business has also grown significantly, with almost 400 plants across the country, contributing approximately 4% of cement volumes.
Source: BSE
