UltraTech Cement Sets Sights on 200 MTPA Milestone, Allocates ₹10,000 Crore Capex for FY26

New Delhi, July 28, 2025 — UltraTech Cement, part of the Aditya Birla Group, is planning to spend up to ₹10,000 crore in FY26 to expand its capacity and improve efficiency. This comes as the company expects cement demand to grow by 6–7% during the year. With this investment, UltraTech is also moving closer to reaching a production capacity of 200 million tonnes per year.

Capacity Expansion and Strategic Acquisitions

UltraTech crossed a consolidated capacity of 192.26 million tonnes per annum (MTPA) as of June 30, 2025, and is accelerating toward its 200 MTPA target. In FY25 alone, the company added 42.6 MTPA through both organic and inorganic initiatives, with 16.3 MTPA added organically, representing 55% of the sector’s total capacity additions during the year.

Significant acquisitions included India Cements and Kesoram Industries’ cement business, adding a combined 26.3 MTPA and deepening UltraTech’s presence in the key southern India market.

Focus on Efficiency and Energy

UltraTech is also investing in green energy to boost efficiency. At the former Kesoram units, the company is installing an additional 107 MW of green energy capacity. For India Cements, which achieved EBITDA break-even in Q4 FY25, a detailed capex plan is underway to upgrade the assets to UltraTech’s operational standards.

“Our investments are not just about expanding capacity but also enhancing efficiency and sustainability across operations,” said Managing Director K C Jhanwar in the company’s latest annual report.

Financial Outlook and Debt Position

UltraTech crossed ₹75,000 crore in revenue during FY25. While its net debt-to-EBITDA ratio increased to 1.33x by March 2025 due to expansion-related outflows, the company expects this to decline rapidly owing to improved margins and higher volumes.

Despite facing tepid demand and lower sales realisations in FY25, UltraTech remains optimistic about a recovery in FY26, driven by renewed government infrastructure spending and housing demand.

Cement Demand Outlook

India’s cement demand reached around 435 million tonnes, and UltraTech projects it to grow by 6–7% in FY26, up from 4–5% in FY25. The Union Budget’s ₹11.21 lakh crore allocation to infrastructure is expected to act as a significant demand catalyst.

Competitive Landscape: Adani’s Aggressive Expansion

UltraTech faces growing competition from Ambuja Cements, part of the Adani Group, which has rapidly expanded its footprint. Adani crossed the 100 MTPA mark in FY25 largely through acquisitions and aims to reach 118 MTPA by FY26 and 140 MTPA by FY28.

Since entering the cement sector in September 2022 with the USD 6.4 billion acquisition of Ambuja and ACC from Holcim, the Adani Group has bolstered its portfolio with acquisitions of Penna Cement, Sanghi Industries, and Orient Cement.

UltraTech Cement Stock Performance

UltraTech Cement shares closed at ₹12,239, representing a 0.09% dip on July 28, 2025. UltraTech Cement shares have gained 3.08% in the last year, 6.92% in the year-to-date, and 1.21% in the previous month.

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