UltraTech Cement: UltraTech Cement targets double-digit progress for FY26

ET Intelligence Group: UltraTech Cement reported strong quantity progress for FY25 aided by acquisitions. At 14%, it was the best annual progress in a minimum of 5 years. For FY26, the nation’s largest cement producer is hopeful of sustaining the momentum and is aiming to clock a double-digit progress on the again of capability additions, anticipated uptick in infrastructure tasks and concrete actual property demand. It has earmarked ₹10,000 crore of capital expenditure for FY26, marginally larger than ₹9,428 crore spent in FY25. The acquired companies are anticipated to attain strong progress pushed by rising working effectivity, which is able to help the general progress. Analysts have maintained ‘purchase’ ranking on the inventory with 14-18% upside to the present value.

The corporate’s internet revenue elevated 10% year-on-year to ₹2,482 crore and income from operations grew 13% to ₹23,063.3 crore within the March 2025 quarter. Gross sales quantity rose 6% excluding acquisitions. The per-tonne working revenue earlier than depreciation and amortisation (Ebitda) elevated sequentially for the third straight quarter to ₹1,270, a 7% year-on-year progress.

UltraTech goals to chop prices by ₹300 per tonne in three years, together with ₹86 per tonne achieved in FY25. It will likely be aided by cost-saving initiatives reminiscent of waste warmth restoration and different gasoline utilization. Whereas the full-year quantity steerage is optimistic, the corporate anticipates slower quantity progress in April and Could resulting from heatwaves. As well as, whereas there are indicators of actual property slowdown in city areas, demand is prone to decide up in coming quarters.

India Cements, which was acquired in July 2024, achieved Ebitda breakeven in March 2025. UltraTech has been specializing in bettering price effectivity of this business-the rate of interest for the corporate’s borrowings fell by 3.8% after the acquisition. Earlier, ET had reported that India Cements was on its technique to obtain Ebitda per ton of over ₹1,000 by FY28 from the present degree of ₹40.

Kesoram Industries, the opposite acquisition, delivered an Ebitda per ton of ₹399 within the March 2025 quarter. It goals to boost it to over ₹1,000 by the March 2026 quarter.

Motilal Oswal Monetary Companies (MOFSL) said that the cement main is predicted to proceed to realize market share with its strong capability growth and rising scale of operations, which is able to assist in discount of debt. “We estimate internet debt to say no to ₹10,530 crore by FY27 from ₹17,669 crore as of March 2025 and internet debt-Ebitda ratio to fall to 0.5 from 1.2,” the brokerage mentioned in a report. MOFSL has valued UltraTech’s enterprise worth (EV) at 20 instances Ebitda for FY27 to reach at goal value of ₹13,900.