UltraTech Cement has announced a Rs10,000 crore capital expenditure plan for FY26, aiming to boost its production capacity and enhance energy efficiency. The company expects 7% growth in the fiscal year and is nearing the 200 MTPA mark, with its current consolidated capacity at 192.26 MTPA as of June 30, 2025.
The expansion strategy includes: Acquisitions: India Cements and Kesoram Industries added 26.3 MTPA; Organic growth: 16.3 MTPA added, accounting for 55% of India’s total sector expansion; Green energy: 107 MW capacity being added at Kesoram units; Operational upgrades: India Cements reached EBITDA break-even in Q4 FY25; further investments planned to align with UltraTech standards
Despite a rise in net debt to EBITDA ratio to 1.33x, UltraTech anticipates rapid improvement through higher volumes and better margins. The company crossed Rs75,000 crore in revenue in FY25, even as sales realisation dipped due to tepid demand.
India’s cement demand, currently at 435 million tonnes, is expected to rebound to 6–7% growth in FY26, supported by government infrastructure spending and urbanisation. The Union Budget’s Rs11.21 lakh crore allocation for infrastructure is seen as a major tailwind.
UltraTech faces stiff competition from Adani Group’s Ambuja Cements, which has scaled to 100 MTPA and aims for 140 MTPA by FY28 through rapid acquisitions including ACC, Penna Cement, Sanghi Industries, and Orient Cement.
With its aggressive capex and strategic acquisitions, UltraTech is reinforcing its leadership in India’s cement sector while navigating evolving market dynamics.
