UltraTech Cement achieved a landmark fiscal year 2026, crossing 200 million tons in domestic production capacity. Consolidated sales volumes surpassed 44 million tons for the quarter, reflecting a 19% year-on-year brand growth. Despite geopolitical headwinds impacting fuel and logistics costs, the company maintained robust operational efficiency. The Board has proposed a dividend of INR 240 per share, underscoring strong cash flows and commitment to long-term shareholder value as it charts growth beyond 240 million tons.
Record-Breaking Capacity and Growth
UltraTech Cement concluded fiscal year 2026 as a milestone year, successfully reaching 200 million tons of annual production capacity in India—a first for any company outside of China. The company more than tripled its capacity over the last decade, growing from 65 million tons in 2016. Management confirmed that the next horizon is already set, with a commitment to add an additional 37 million tons, targeting a total capacity exceeding 242.5 million tons by fiscal year 2028.
Q4 Financial and Operational Performance
The company reported a strong performance in the final quarter, with consolidated sales volumes exceeding 44 million tons. EBITDA per ton stood at INR 1,253 on an aggregate basis for the quarter. Notably, the brand integration of acquired businesses—India Cements and Kesoram—was completed 100% by the end of March 2026, ahead of schedule. The India Cements business demonstrated significant operational progress, with its EBITDA per ton climbing from INR 333 in Q2 to INR 497 by Q4.
Strategic Cost Management and Outlook
While the conflict in West Asia introduced near-term headwinds in fuel costs and supply chains—including a one-time INR 90 crore impact on packaging costs in March—management emphasized that these challenges are being mitigated through diversified procurement, long-term fuel contracts, and scale-driven efficiencies. The company’s green energy platform now covers 43% of its power requirements, with a target to reach 85% by fiscal year 2030.
Shareholder Returns and Future Investment
Following a robust year with over INR 8,000 crores in overall profit, the Board has recommended a dividend of INR 240 per share. The company maintains a strong balance sheet with a net debt-to-EBITDA ratio of 0.94x. Moving forward, UltraTech plans to invest between INR 8,000 crores to INR 10,000 crores annually in capital expenditure to sustain its growth trajectory and further expand its infrastructure footprint across India.
Source: BSE
