Q4 2026 India Cements Ltd Earnings Call Transcript
Key Points
- India Cements Ltd (BOM:530005) achieved a significant milestone by completing 100% brand migration to UltraTech ahead of schedule, enhancing brand value and market positioning.
- The company reported a sequential improvement in EBITDA per tonne, reaching INR497 in Q4 '26, up from INR333 in Q2, indicating operational efficiency gains.
- India Cements Ltd (BOM:530005) has committed to substantial investments in efficiency improvements and capacity expansion, which are expected to drive EBITDA per tonne over INR1,000 by fiscal '28.
- The company is actively managing its energy mix, with 43% of power needs met from green sources, and aims to reach 85% by fiscal 2030, showcasing a strong commitment to sustainability.
- India Cements Ltd (BOM:530005) benefits from a robust balance sheet with a net debt-EBITDA ratio of 0.94x, providing financial flexibility for growth investments and shareholder returns.
- The conflict in West Asia poses a real headwind, impacting fuel costs, packing bags, and freight, which could lead to increased domestic prices of petrol and diesel.
- The company faced a significant increase in bag costs, with an incremental cost of approximately INR90 crores in the last month of the quarter, affecting overall expenses.
- Exchange rate volatility, particularly the devaluation of the rupee, resulted in a non-cash debit to the P&L, impacting EBITDA.
- Despite operational improvements, the integration of acquired businesses like India Cements and Kesoram still presents challenges, with legal issues delaying full integration.
- The cement industry faces fragmentation, which limits the ability to pass on cost increases fully, potentially impacting profitability amidst rising input costs.
Ladies and gentlemen, good day, and welcome to the UltraTech Cement Limited Q4 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I will now hand the conference over to Mr. Atul Daga, Chief Financial Officer, for opening remarks. Thank you, and over to you, sir.
Thank you. Good evening to everybody. I want to begin not with numbers, but where we stand as a company because fiscal '26, in my view, is a year that will be looked back on as a genuinely significant in UltraTech story. And fiscal '27 started with an achievement of major milestones. UltraTech crossed 200 million tonnes of cement production capacity in India, a first for any company in a single country outside of China.
Let me put this in context. We reached 100 million tonnes in 2019, added another 50 million tonnes in five years by 2024, and we completed a journey from 150 million to 200 million tonnes in less than two years. This is a feat, even more remarkable since we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
