The India Cements (INDIACEM) Q2 25/26 earnings summary

Executive summary

• Cement sales exceeded 31 million tons in Q2 FY26, with strong demand for premium cement and rural market growth of 13%.

• Domestic sales volume reached 2.44 MnT in Q2 FY26, up 11.9% quarter-over-quarter, with average capacity utilization at 65%.

• Brand conversion of acquired UltraTech and Kesoram assets to India Cements is progressing rapidly, with 31% and 55% conversion, respectively, expected to complete by June 2026.

• Standalone and consolidated unaudited financial results for the quarter and half-year ended 30 September 2025 were approved, with continued operational focus on cement and related products.

• The period saw the approval for sale of the entire equity stake in Industrial Chemicals & Monomers Ltd and the proposed sale of a foreign associate, both classified as held for sale.

Financial highlights

• Sales volume grew 22.3% year-over-year (excluding UltraTech and Kesoram from base), 9.6% sequentially, and 6.8% including all assets.

• Revenue from operations for Q2 FY26 was ₹1,117 Crores, up from ₹1,007 Crores in Q2 FY25.

• Consolidated EBITDA improved to ₹110 Crores from a loss of ₹4 Crores in Q2 FY25.

• Standalone revenue from operations for Q2 FY26 was ₹1,117.15 crore, up from ₹1,024.63 crore in Q1 FY26, but net loss for the quarter was ₹6.86 crore, improving from a loss of ₹13.76 crore in Q1.

• Operating margins improved to 8.00% standalone and 7.26% consolidated for Q2 FY26.

Outlook and guidance

• Brand transition for acquired assets to complete by June 2026, expected to drive further synergy and profitability.

• Capex plan of ₹2,000 Crores over the next two years focuses on growth and efficiency improvements.

• Green power mix to reach 65% by end of current growth phase, with a target of 80% by FY28.

• The company is undergoing restructuring, including the amalgamation of four wholly owned subsidiaries, pending regulatory approvals.

• Industry demand growth guidance of 6–7% for the year, with Q2 industry growth at 4.5–5%.