UltraTech to hit 200 mtpa capacity target a year ahead of target in FY26: Birla

Mumbai: UltraTech Cement chairman Kumar Mangalam Birla has said the company will reach its target of 200 million tonnes per annum capacity a year ahead of its guidance of FY27.

“UltraTech is now well and truly poised to become the largest cement-selling company in the world, outside of China,” Birla said in his address to shareholders at the cement maker’s annual general meeting.

China National Building Material Co. is the biggest cement maker in China with a total capacity of over 500 million tonnes per annum (mtpa).

Ultratech’s capacity stood at 188.8 mtpa as of March 2025. That suggests the company will be adding 28.8 mtpa of organic capacity additions in FY26. It plans to invest ₹9,000-10,000 crore on capex in FY26, managing director K.C. Jhanwar said in his message to shareholders in the annual report.

UltraTech’s expansion plans are expected to consolidate its market leadership and help it gain additional market share, analysts at Axis Securities said in a 22 July note. The company’s growth is likely to be supported by strong demand, better pricing, upcoming capacity additions, ramp-up of recently commissioned plants, and the advantage of lower commodity costs, they said.

Adani Group is India’s second-largest cement maker. The conglomerate, which entered the cement sector in September 2022 with the acquisition of Ambuja Ltd and ACC Ltd, currently has a total capacity of 104.5 mtpa. It aims to achieve 118 mtpa capacity by FY26 and 140 mtpa capacity by 2028.

Adani has been acquiring cement assets since entering the sector, including Sanghi Industries, My Home Group's cement business, Penna Cement, and Orient Cement. Meanwhile, UltraTech bought Kesoram Industries' cement unit, India Cements, and Wonder Cement.

After completing the acquisition of Ambuja and ACC, Gautam Adani, founder of the group that bears his name, had said the conglomerate’s target is to become India's top cement maker by 2030. But Aditya Birla Group-owned UltraTech has been protecting its turf.

The cement sector has drawn interest from another conglomerate: the JSW Group. JSW Cements Ltd, which went public last week, commenced its journey from the southern region to consume slag produced by a group company. It now has a 20.60 mtpa grinding capacity, and aims to double it to 42 mtpa in the next four years.

But the company is focusing on growing organically, managing director Parth Jindal has said. In a roadshow, he said the company’s balance sheet does not have the necessary capital or cash flow to outcompete its larger peers in a bidding war for existing assets.

Other top cement makers in India include Shree Cement, Dalmia Bharat, Nuvoco Vistas and Ramco Cement.

Over the last two years, a war for market share between the Adani and Aditya Birla group companies washed away the cement industry's margins.

In FY25, UltraTech’s net revenue stood at ₹75,955 crore and Ebitda at ₹13,302 crore. The sales volumes were up by 14% year-on-year to 135.83 million tonnes.UltraTech reported an Ebitda margin of 17% in FY25, lower than 19% in FY24.