UltraTech Cement’s Q3 FY26 earnings call emphasized a robust demand outlook driven by infrastructure projects across India. The company reported strong progress in integrating recent acquisitions and improving operational efficiency. UltraTech is witnessing unprecedented growth in new avenues like data centers and renewable energy projects. The company is expanding capacity and aims to fund growth through internal accruals, maintaining a prudent balance sheet.
Demand and Growth Drivers
The earnings call highlighted strong demand for cement, fueled by government focus on infrastructure projects. Key regions driving demand include:
- North: Extensive road development in Punjab (INR16,000 crore), new Delhi Metro corridors (INR12,000 crore), and metro network expansion in Uttar Pradesh.
- West: Large transport and mobility projects in Maharashtra (Uttan-Virar Sea Link: INR58,000 crore), Mumbai Metro expansions, and highway projects in Gujarat.
- South: Bangalore metro network expansion and urban infrastructure program in Karnataka.
- East: Road initiatives in West Bengal and Ganga Road projects in Bihar.
Housing, low-income housing programs, affordable housing, and rural connectivity projects continue to sustain steady demand. The company’s RMC network covers approximately 163 cities.
Acquisition and Expansion
Integration of recent acquisitions is progressing well, with rapid brand transition. Brand conversion at Kesoram reached 69% in December ’25, and India Cements crossed 58%. Cost improvement capex programs have begun at both assets.
Operational Efficiency
Efficiency improvement programs continue to deliver solid results. The lead distance has dropped to 363 kilometers and the clinker conversion factor has improved to 1.49.
UltraTech expects to operate at more than 90% of its existing installed capacity in Q4 FY26. Prices are witnessing improvement in all segments across the country.
Financial Position
On a consolidated basis, UltraTech’s net debt to EBITDA is at 1.08x. The company is confident of reaching 1x and being in 0.8x to 0.9x net debt to EBITDA by the end of the fiscal year.
Approximately INR500 crores worth of orders for the cable and wires initiative have already been placed, with INR197 crores spent.
Future Outlook
Approximately 8 to 9 million tons of capacity are expected to come online in Q4, with the balance (12 million tons) in fiscal ’27 and the remainder in ’28.
Source: BSE
