CARE Ratings has reaffirmed the ‘CARE AAA; Stable’ and ‘CARE A1+’ ratings for UltraTech Cement’s long-term and short-term bank facilities. The rating agency highlighted the company’s sustained market leadership, extensive pan-India cement capacities, and robust financial profile. Additionally, the rating for the company’s fixed deposit issue has been withdrawn following the full repayment of all outstanding amounts.
Market Leadership and Capacity Expansion
UltraTech Cement continues to maintain its position as the largest cement producer in India. As of December 31, 2025, the company achieved an installed grey cement capacity of 194.06 MTPA, which includes 5.4 MTPA of overseas capacity. The company is actively executing an expansion plan to reach a total capacity of 240.8 MTPA by FY28, driven by a strategic mix of greenfield and brownfield projects.
Financial Performance and Operational Efficiency
The company demonstrated strong financial growth, with net sales reaching ₹74,936 crore for FY25. For the first nine months of FY26, net sales grew by approximately 19% year-on-year to ₹62,712 crore, while EBITDA margins expanded to 19%. UltraTech’s commitment to operational efficiency is reflected in its increased use of green power, which reached 42.1% in 9MFY26, and its target to achieve 60% green power consumption by the end of FY27.
Strategic Outlook and Sustainability
UltraTech is focusing on cost optimization through its integrated operations, including captive thermal power plants, waste heat recovery systems, and renewable energy assets. The company has also announced a new investment of ₹1,800 crore to enter the cable and wire division over the next two years. Despite the inherent cyclicality of the cement industry and potential volatility in input costs, the company maintains a robust liquidity position and a healthy capital structure, supported by strong internal cash flow generation.
ESG and Future Targets
UltraTech remains dedicated to its environmental, social, and governance (ESG) goals. The company has set a target to reduce its carbon footprint to 462 kg CO2/tonne of cement by FY32. Furthermore, the company has successfully achieved its target of being 5.4x water positive as of 9MFY26, demonstrating a proactive approach to resource management.
Source: BSE
