UltraTech Sets ₹10,000 Cr Capex for FY26, Eyes 200 MTPA Milestone Amid Cement Boom

UltraTech Cement moves for a massive expansion with ₹10,000 crore capital expenditure for FY26 to consolidate the existing production capacity and improve the operational efficiency of the company. The capital expenditure has come against the backdrop of strong market momentum and recent acquisitions, with the company knocking at the doors of the landmark 200 million tonnes per annum (MTPA) cement production capacity.

According to its latest annual report, UltraTech is forecasting 7% growth in FY26. In FY25, it added 42.6 MTPA through a mix of organic and inorganic growth, pushing total capacity to 192.26 MTPA as of June 2025.

The recent buyouts of India Cements and the cement business of Kesoram Industries have bolstered UltraTech’s southern India footprint and added 26.3 MTPA to its portfolio. Organic expansion contributed another 16.3 MTPA, accounting for 55% of the total capacity growth across the Indian cement industry in FY25.

Managing Director K.C. Jhanwar said the company’s net debt to EBITDA ratio rose to 1.33x in March 2025, but a recovery is expected with improving volumes and margins. He acknowledged challenges last year, including a dip in sales realisation and a modest 4–5% growth in cement demand due to extended monsoons and slower government infrastructure spending.

However, with cement demand in India touching 435 million tonnes and the Union Budget allocating ₹11.21 lakh crore for infrastructure, UltraTech expects demand to rebound to 6–7% in FY26.

Jhanwar also highlighted post-acquisition upgrades, noting that Kesoram units are undergoing a 107 MW green energy capacity expansion to boost efficiency. India Cements, which achieved EBITDA break-even in Q4 FY25, will see significant operational investments over the next two years.

Proof of the ever-increasing intensity in the competition for supremacy in the market now lies with Adani Group’s Ambuja Cements, a formidable challenger. This group of companies extended the limitation of 100 MTPA for Ambuja even in FY25, and thus hopes to augment it to 140 MTPA through acquisitions and expansions by FY28.

However, all these developments will be in tandem with UltraTech, concentrating on the capacity additions that are supported by the efficiency enhancement and sustainability investments, in the race towards that 200 MTPA mark.