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UltraTech Cement is eyeing around Rs 9,000–10,000 crores in capex during FY2026, the management said during an investor call to discuss Q4 earnings. Of this, Rs 7,000 crores will be directed toward strategic investments to boost operational scale and efficiency.

For India Cement, they noted that a capex plan of about Rs 1,500 crores has been chalked out. Out of which Rs 1,000 crore is towards WHRS (Waste Heat Recovery Systems) and other profit improvement opportunities.  "With a payback period of less than three years, these monies will be spent in FY2026 and FY2027 and the benefits will start reflecting in the performance of the company. In the quarter of January 27th we have also identified brownfield expansion opportunities in the network of India Cement for future," Ultratech Cement CFO Atul Daga said. In December 2024, UltraTech completed its acquisition and became the sole promoter of India Cement.

As of March 2025, UltraTech’s total installed capacity reached 184 million tons. "Our ongoing expansion program will take us from the current capacity of 184 million tonnes (including India Cements and Kesoram capacities) to around 212 million tons by FY2027," Daga added.

During the year, Daga noted that the cement industry ended with a total capacity of about 655 million tons, up from 625 million tons. "At UltraTech, of the 30 million tons of new capacity added in the industry, almost 57 percent was contributed by us. Our total capacity in India has increased from 140 million tons to 184 million tons — an addition of 42.6 million tons, supported by two acquisitions," he noted adding that they that overall cement demand in the country grew around 4% this quarter, and in that backdrop, UltraTech achieved nearly 10% volume growth.

Near term slowdown persists

The management remains confident of further growth despite acknowledging some softening in urban real estate demand and slower construction activity triggered by an intense heatwave across key states.

"The beginning of the year has been slightly weak because of the very heavy heat prevailing in the country, which has slowed down construction activity," Daga said. However, he added that with the onset of rains and cooling temperatures, particularly in key states like Bihar, momentum would return.

On the real estate front, the management noted a deceleration in demand from the urban housing sector. "Urban real estate has shown some signs of slowdown. But we believe, as per experts, this is only temporary and we will start seeing urban housing demand pick up further," he said.

He added that the company remains on course to deliver upwards of Rs 300 per ton in efficiency gains over a three-year window (By FY2027).

On challenges related to commodity prices, UltraTech management noted that while fuel prices had spiked earlier they also  seem to be stabilizing.

In Q4FY25, the company reported a 10 percent YoY rise in consolidated net profit at Rs 2,482 crore from Rs 2,258 crore in the previous fiscal. Revenue from operations for the quarter increased 13 percent YoY to Rs 23,063 crore against Rs 20,419 crore in Q4FY24.

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