Financial Performance Highlights

  • Highest ever Q1 performance across volumes, revenues, EBITDA and profit
  • Domestic grey cement volumes grew 13.1% year-on-year
  • Capacity utilization improved to 81% from 76% in previous year
  • EBITDA reached ₹5,146 crores
  • PAT stood at ₹2,604 crores, up 17.2% year-on-year
  • Operating EBITDA per ton remained steady above ₹1,200

Operational Metrics

  • Brand performance: UltraTech brand grew 21.3% year-on-year post complete conversion of Kesoram and India Cements brands
  • Green power capacity: 1,897 MW renewable power, meeting 47% of total power requirements by quarter end
  • Cement lead distance: Reduced to 360 kilometers
  • RMC plants: 477 operational plants
  • Distribution network: ~2,000 warehouses and 150,000 channel partners

Capacity Expansion Update

  • Current capacity: 200.1 million tons domestic grey cement, 205.5 million tons total capacity
  • Q1 FY27 additions: 8.7 million tons commissioned (Shahjahanpur, Visakhapatnam, Patratu) out of industry total of 12 million tons
  • Ongoing projects: ₹17,000 crores capex over next 2-2.5 years to reach consolidated capacity beyond 242 million tons
  • FY27 target: Grey cement capacity to reach 212.7 million tons by end of fiscal year
  • Funding: Entire expansion funded through internal accruals

India Cements Integration Progress

  • Revenue growth: 21% growth on like-for-like basis (₹993 crores vs ₹821 crores previous year)
  • Volume growth: 19% year-on-year
  • EBITDA per ton improvement: Sequential growth from ₹386/ton (Q2FY26) to ₹400 → ₹509 → ₹603 (Q1FY27)
  • Capex program: ₹2,000 crores being deployed for waste heat recovery, preheater upgradation, cooler upgradation
  • Green power trajectory: Improving from 3% to target 86% of power requirements by FY28 end
  • Conversion ratio: Currently at 1.5x
  • Target: ₹1,000 EBITDA per ton by Q4 FY28

Cables and Wires Business Update

  • Investment: ₹1,800 crores approved, ₹888 crores spent/committed till last quarter
  • Progress: Facility setup complete, trial runs commenced, regulatory approvals in place
  • CRM system: Under testing, to be live before launch
  • Launch timeline: Q3 FY27 (October-December 2026) as committed

Cost Structure and Guidance

  • Q1 cost drivers: Fuel cost increased from ₹874 to ₹915 per ton (5% increase); packing bags cost increased from ₹9 to ₹12 per bag average
  • Q2 FY27 cost guidance: Expected increase of ₹130-140 per ton due to:
  • Full impact of West Asia disruption costs from July 1st
  • Monsoon season maintenance costs
  • Operating deleverage in seasonally slower quarter
  • Fuel mix: Pet coke became more expensive than coal in energy terms

Demand Environment and Market Outlook

  • Industry growth expectation: 7-8% for Q1 FY27
  • Regional performance: South and North grew ~15%, West and Central above 15%, East was slowest due to elections
  • Demand drivers: Infrastructure projects including Maharashtra's ₹20,000cr shipbuilding cluster, Odisha's ₹50,000cr seaport, Tamil Nadu's ₹18,000cr data centers, Ahmedabad-Dholera rail corridor, metro expansions
  • Urbanization: India at 35% urbanization, expected to reach 39% by 2030
  • Real estate: Property registrations grew ~6% in Mumbai; strong absorption in top 8 cities

Financial Position

  • Net debt to EBITDA: Improved from 0.94x at year start to 0.87x at quarter end
  • Target: Maintain below 1x for the year
  • Dividend policy: Based on percentage of profits

West Asia Impact Management

  • Crisis impact: Strait of Hormuz closure caused crude above $100 and coal cost surge
  • Structural buffers: Green power (47% of requirements), AFR substitution, reduced lead distance helped absorb shock
  • Current status: Situation still fluid but company better positioned than peers

Raw Material Costs

  • Limestone raising costs: Increased 13-14% QoQ due to industrial diesel price surge from ₹78-80 to ₹150+ per liter

Regional Demand Outlook

  • East region: Expected structural improvement over next 2-4 years due to land reforms and post-election activity
  • Monsoon impact: Some dry states like Rajasthan may face water crisis affecting next year demand