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% year-over-year.

• Domestic sales volume reached 2.18 MnT in Q1 FY26, marking an 11.6% year-over-year increase, with consolidated volume growth at 9.7% including Kesoram.

• Urban housing showed signs of a future rebound, while rural markets continued to perform well.

• EBITDA per metric ton rose sharply to ₹424 from ₹88 in Q4 FY25, and consolidated PBIDT for Q1 FY26 was Rs.92.31 crores, up from a loss of Rs.9.16 crores year-over-year.

• Average capacity utilization stood at 61% for the quarter.

Financial highlights

• Realizations for the UltraTech brand increased 2.2% sequentially; cement realizations (net of logistics cost) improved by 5.7% quarter-over-quarter.

• 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.

• Finance costs reduced sharply to Rs.26.58 crores from Rs.82.36 crores year-over-year due to successful debt refinancing.

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

Outlook and guidance

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

• CapEx for FY26 is close to INR 10,000 crores, with further guidance for FY27 to be provided later.

• 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.

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