UltraTech Cement has achieved a landmark milestone, crossing 200 million tons of cement production capacity in India, the first company outside China to do so. The firm reported strong Q4 FY26 performance, marked by 19% year-on-year growth in brand volume and a consolidated profit after tax (PAT) of INR3,000 crore for the quarter. With robust operating cash flows, the company has announced a dividend of INR240 per share.
A Historic Milestone in Capacity
Fiscal 2026 was a transformative year for UltraTech Cement, as the company successfully reached 200 million tons of production capacity. This achievement, reached a full year ahead of internal targets, cements UltraTech’s status as the largest cement company in the world by sales volume outside of China. The company has clear plans for its next growth horizon, committing to an additional 37 million tons of capacity to surpass 242.5 million tons by the end of fiscal 2028.
Robust Q4 and Full Year Financials
During the fourth quarter of fiscal 2026, consolidated sales volume reached 44 million tons. The company’s focus on premiumization and brand-led growth resulted in 19% year-on-year growth for the UltraTech brand. Profitability also saw significant improvements, with an EBITDA per ton of INR1,253 on an aggregate basis. The strong financial performance culminated in an annual PAT exceeding INR8,000 crore, prompting the Board to declare a dividend of INR240 per share for fiscal 2026.
Successful Integration of Acquired Businesses
The integration of India Cements and Kesoram has progressed ahead of schedule. As of the end of March 2026, 100% brand migration has been completed. The efficiency programs in these acquired units are yielding strong results, with India Cements reporting an EBITDA per ton of INR497 in Q4 FY26, up from INR305 in the third quarter. The company plans to invest between INR8,000 crore and INR10,000 crore annually in capital expenditure to sustain this growth trajectory.
Commitment to Sustainability and Future Growth
UltraTech continues to advance its sustainability agenda, with 43% of its power needs currently met from green sources. The company has set an ambitious target to increase this to 85% by fiscal 2030. Looking ahead to fiscal 2027, the company expects sustainable volume growth of 7% to 8%, supported by robust infrastructure demand and government housing programs. Despite short-term global headwinds, the company remains focused on maintaining its debt-to-EBITDA ratio below 1x while continuing to deliver value to its shareholders.
Source: BSE
