UltraTech Cement Aims at ₹10,000 Cr FY26 Capex, Achieve 212 MT Capacity by FY27

UltraTech Cement is lining up FY26 capex of ₹9,000–10,000 crore, sharply focusing on scaling up operations as well as driving efficiency, said the company during its Q4FY25 earnings call. This includes ₹7,000 crore for strategic capital expenditure, informed CFO Atul Daga.

A separate ₹1,500 crore capex is planned for India Cement, which UltraTech fully acquired in December 2024. Around ₹1,000 crore will be directed toward Waste Heat Recovery Systems (WHRS) and other profitability measures. “These investments have a payback period of under three years and will be deployed in FY26 and FY27,” Daga said. Brownfield expansion opportunities within the India Cement network are also under consideration.

As of March 2025, UltraTech had an installed capacity of 184 million tonnes, including India Cements and Kesoram capacities. The company aims to bring this up to 212 million tonnes by FY27.

Daga highlighted that the Indian cement industry’s total capacity rose from 625 to 655 million tonnes in FY25. UltraTech alone contributed 57% of the 30 million tonnes added, increasing its domestic capacity from 140 to 184 million tonnes — a jump of 42.6 million tonnes driven by two acquisitions.

Despite a 4% overall rise in cement demand during the quarter, UltraTech achieved 10% volume growth. However, Daga acknowledged near-term headwinds, including a construction slowdown caused by extreme heat in key states. “The start of the year was weak due to heatwave conditions, but we expect momentum to return with the monsoon,” he said.

Urban real estate has shown early signs of cooling, but the company expects demand to rebound. “Experts see this as a temporary phase,” Daga noted.

UltraTech continues to target efficiency gains of ₹300 per tonne over three years, through FY27. On cost pressures, the company said that while fuel prices surged earlier, they now appear to be stabilizing.

For Q4FY25, UltraTech registered a 10% YoY growth in consolidated net profit of ₹2,482 crore. Revenue from operations was higher by 13% YoY at ₹23,063 crore.