UltraTech Cement share down today as its OFS for stake sale in India Cement opens

20^th August 2025: UltraTech Cement’s share price is down today. At 11:30 a.m. 21^st August, the stock is down by 0.33%, trading at Rs 12, 831. Nifty 50 index is up by 0.29% at this time. UltraTech Cement’s offer for sale (OFS) for selling 6.5% stake in India Cement has opened today. The floor price for the stake sale has been set at Rs 368 per share. The OFS will close on 22^nd August.

Capacity Expansion and Growth Outlook

Chairman Kumar Mangalam Birla, addressing UltraTech’s Annual General Meeting, announced that the company is on track to surpass 200 million tonnes of annual cement production capacity by FY26.

As of March 2025, UltraTech’s capacity stood at 188.8 MTPA. During FY25, the company expanded significantly, adding 16.3 MTPA through organic growth and another 26.2 MTPA via acquisitions of India Cements and Kesoram Industries. In Q1 FY26, UltraTech further enhanced its capacity by 3.5 MTPA, taking the total to 192.26 MTPA.

Financial Performance

For FY25, UltraTech achieved ₹75,955 crore of net revenue, with sales volume expanding year-over-year by 14% to 135.83 million tonnes. UltraTech’s Q1 FY26 net revenue was ₹21,275 crore, up from ₹18,819 crore year-over-year. Profit after tax increased 49% to ₹2,226 crore from ₹1,513 crore in the previous year. Its white cement and wall putty capacities in June 2025 were 1.3 MTPA and 2.0 MTPA, respectively.

Industry and Economic Outlook

The Chairman indicated that UltraTech is set to become the world’s largest-selling cement company (excluding China). With India accounting for 30.8% of cement production globally, demand is expected to grow from 435 MTPA in FY25 to over 620 MTPA by FY30. He also estimated India’s GDP at 6.5% in FY26, aided by government investment, recovery in consumption, and a manufacturing thrust under the PLI scheme.

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Source : NSE