The India Cements (INDIACEM) Q1 25/26 earnings summary

Executive summary

• Cement demand remained steady, supported by increased government CapEx, with 2,108 km of highways built in Q1 FY26, up 8.9% YOY.

• Domestic sales volume reached 2.18 MnT in Q1 FY26, marking an 11.6% year-over-year increase.

• Consolidated volume growth was 9.7% YOY, including Kesoram, with effective management of Kesoram from March 2025 and India Cements from December 2024.

• Urban housing showed signs of rebound, while rural markets are expected to grow favorably in coming quarters.

• EBITDA per metric ton rose sharply to ₹424 from ₹88 in Q4 FY25.

Financial highlights

• Realizations for UltraTech brand increased 2.2% sequentially; UltraTech plus Kesoram saw a 2.3% increase.

• Net sales for Q1 FY26 were ₹1,025 crore, nearly flat year-over-year.

• EBITDA improved to ₹92 crore from a loss of ₹9 crore in Q1 FY25.

• CapEx during the quarter was around INR 2,000 crores, excluding India Cements.

• Average cost of borrowing was 7% for the previous quarter, expected to decline with further rate cuts.

Outlook and guidance

• Double-digit volume growth targeted for FY26, with new capacities and integration of acquisitions supporting this.

• Planned capex for productivity and energy efficiency is expected to yield benefits starting Q4 FY27.

• Green power (RE + WHRS) targeted to scale from 5% to 86% by FY27.

• India Cements expected to reach EBITDA per ton in excess of INR 1,000 by FY28 after CapEx and integration.

• Profitability is expected to improve as capex benefits and synergies from the holding company materialize.