Capacity utilization reached 71% (vs. 66% last year) on a higher base
Regional growth breakdown: North (>20%), South (15-20%), East (~5%), West (~10%), Central (~10%)
Pricing Trends
Pan-India average trade prices for Q2 were stable compared to Q1, with quarterly average 1-1.5% lower mainly due to soft August
Prices rose 7-10% per bag month-on-month in second half of September
Exit September trade prices about 3% above Q1 average
Management expects further price improvements in the next couple of months
Regional price performance: West (steady through July-August, stepped up in September), East (disrupted by rains in August, catching up in October), South (strongest momentum), North (steady), Central (muted)
Cost Structure
Fuel costs rose 13% quarter-on-quarter, from ₹45 to ₹51.5 per bag
Fuel rates climbed to approximately ₹2.09 per kcal (may have increased to ₹2.2)
Raw material costs rose 3% quarter-on-quarter
Other fixed costs per ton were 6% lower than last year despite new capacity
Absolute fixed costs grew only 4%, well below volume growth of 13.8%
Pet coke prices reached ~$180 per ton
Reduced pet coke dependence to 25% of overall fuel mix
Industrial diesel prices at all-time high
Capacity Expansion
Commissioned 4.6 million tons of capacity in September 2026
Domestic cement capacity now at 204.7 million tons
Includes 3.6 million tons greenfield capacity at Petnikota, Andhra Pradesh
Includes 1 million ton debottlenecking at 3 other units
Added 116 MW renewable power and 10 MW waste heat recovery
47% of power needs met from non-fossil fuel sources
Achieved 2 GW green power for captive consumption
Commissioned AFR systems at 2 plants, thermal substitution rate at 7.2%
On track to reach 240 million tons capacity as planned
Ultravolt Wires & Cables Business Launch
Launched on 3rd September 2026 under brand Ultravolt
Planned investment of ₹1,800 crores, with ₹1,100 crores spent till date
Balance to be spent in next 2 quarters
Started with wires and light-duty cables (house wire, panel wire, multicore cable)
Power and control cable lines to be commissioned in second half
Mother plant at Jhagadia, Gujarat with main warehouse, 5 regional distribution centers, and 16 branch warehouses
Over 1,500 UltraTech UBS channel partners signed up as dealers
Retail reach crossed 80,000 points
Positioning at market parity with premium products using Class 5 insulation material and e-beam technology
Revenue target of ₹10,000 crores (based on copper prices prevailing in February 2025)
Current capacity makes them number two in installed capacity terms
Demand Outlook
Industry estimates show cement demand growing closer to 10% year-on-year
Weak monsoon (fourth lowest since 2001) resulted in fewer rain loss days, supporting construction activity
East region exception due to torrential rains and flooding
Strong project pipeline: 100 announcements worth ~₹13.4 lakh crores by early September
Key projects include Tamil Nadu's ₹55,000 crores power plant, ₹65,000 crores Gorakhpur Industrial Park, Assam's ₹50,000 crores 5-year infra program
Activity expected to pick up mid-November after festive season
Capital Allocation and Financial Position
H1 FY27 capex at ₹5,882 crores
Full-year guidance maintained at ~₹10,000 crores
Interest costs increased 22% quarter-on-quarter due to ₹5,000 crores NCD issuance at 7.25%
Net debt to EBITDA at 1.26x at September 2026 end (vs. 0.94x at March 2026 end)
Expected to be below 1x by March 2027 end
Dividend policy reviewed year-on-year based on performance
Other Corporate Developments
Provided corporate guarantee to UHG Holdings (41% owned by UltraTech, 9% by Grasim, 50% by Hindalco)
UHG will purchase aircraft and ships for business use
