UltraTech Cement Ltd.Sold-Out Capacity Drives Strong Outlook

UltraTech Cement demonstrated robust operational momentum in Q3 FY26, operating at over 90% capacity utilization and expecting to exceed this level in Q4. The company witnessed strong all-India demand growth of 9-10% in Q3, driven by government infrastructure spending and healthy rural consumption.

Management expressed high confidence in sustained demand, projecting 7-9% industry growth in Q4 and maintaining a long-term 7-8% CAGR outlook. Pricing power strengthened significantly, with January prices up ₹6-8 per ton versus Q3 averages due to the sold-out position. Efficiency improvements are on track to exceed ₹100 per ton in FY26, surpassing the ₹86 per ton achieved in FY25. Integration of Kesoram and India Cements acquisitions progressed ahead of plan, with brand conversion reaching 69% and 58% respectively.

The company is adding 8-9 million tons of new capacity in Q4 FY26, with 12 million tons planned for FY27, targeting 235 million tons total capacity by FY28. All expansion is funded through internal accruals while net debt-to-EBITDA is expected to improve to 0.8-0.9x by Q4 FY26.