India Cements Returns to Profit; Approves ₹2,014 Crore Capex Plan Under UltraTech

India Cements Ltd (ICL), now a subsidiary of UltraTech Cement under the Aditya Birla Group, has made a strong turnaround in the second quarter of FY26, reporting a consolidated net profit of ₹8.81 crore. This marks a significant recovery from a net loss of ₹339.13 crore recorded during the same quarter last year.

According to the company’s filing with the Bombay Stock Exchange (BSE), revenue from operations rose 9.31% year-on-year to ₹1,117.04 crore in Q2 FY26, compared to ₹1,021.84 crore in the corresponding period of FY25. The company also reduced its total expenses by 13.5%, which stood at ₹1,135.64 crore, reflecting improved cost efficiency and operational performance.

India Cements’ domestic sales volume rose by 11.9% on a quarter-on-quarter basis, reaching 2.44 million tonnes, while capacity utilisation averaged around 65% during the quarter. However, total income, including other income, saw a slight dip of 2.94%, standing at ₹1,146.04 crore.

The company’s board has approved a major investment of ₹2,014 crore to strengthen its operations and expand capacity. This includes ₹1,574 crore earmarked for modernisation and ₹440 crore for capacity enhancement. The additional investment will be financed through a combination of debt and internal accruals, according to the company’s statement.

With the proposed ₹440 crore investment, India Cements plans to add 2.80 million tonnes of capacity to its current 14.75 million tonnes. This move is expected to enhance its market competitiveness and readiness for emerging growth opportunities in the cement sector, particularly in South India.

UltraTech Cement, India’s largest cement producer, acquired the promoter’s stake in India Cements in December 2024, making ICL its subsidiary. This strategic integration has started to show positive results, with improved financial performance and operational discipline.

India Cements’ renewed focus on modernisation and expansion marks a crucial step toward strengthening its position in India’s evolving construction and infrastructure ecosystem. The company aims to leverage UltraTech’s expertise and scale to drive sustained growth in the coming quarters.