The India Cements (INDIACEM) Q3 25/26 earnings summary

Executive summary

• Robust demand driven by government infrastructure projects and marquee investments, supporting strong cement consumption outlook.

• Domestic sales volume reached 2.59 MnT in Q3 FY26, marking a 25% year-over-year increase.

• Capacity expansion and integration of recent acquisitions are progressing ahead of plan, with significant brand conversion and cost improvement CapEx underway.

• Operational efficiency programs are delivering measurable results, including improved lead distance and clinker conversion factor.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended 31 December 2025 were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Net sales for Q3 FY26 were ₹1,103 Crores, up from ₹874 Crores in Q3 FY25; standalone revenue from operations for the quarter was ₹1,114.13 crore, up from ₹902.19 crore year-over-year.

• EBITDA for Q3 FY26 was ₹105 Crores (standalone), compared to a loss of ₹178 Crores in Q3 FY25; standalone net loss for the quarter was ₹5.72 crore, compared to a net loss of ₹409.38 crore last year.

• PAT before exceptional items stood at ₹6 Crores for the quarter; after exceptional items, consolidated PAT was ₹122 Crores.

• EBITDA per ton for the quarter around INR 600, down from INR 755 in the previous quarter; operating EBITDA per metric ton was ₹299, down from ₹330 in Q2 FY26.

• Net debt to EBITDA at 1.08x, expected to improve to 0.89x by fiscal year-end; net debt stood at ₹1,164 Crores as of Dec 2025.

Outlook and guidance

• Expectation to operate at over 90% of installed capacity in the January-March quarter, indicating strong demand.

• Capex guidance for FY 2026-2028 remains at INR 9,500-10,000 crore; capex plan of ₹2,000 Crores over the next two years focused on growth and efficiency improvements.

• Capacity addition guidance: 8-9 million tons in Q4, 12 million tons in FY 2027, and remaining in FY 2028.

• Plans to scale up green power (RE + WHRS) from 5% to 80% by FY29.

• Long-term demand growth guidance remains at 7-8% annually.