UltraTech Cement Set to Achieve 200 MTPA Capacity Ahead of Schedule

UltraTech Cement is on track to reach a production capacity of 200 million tonnes per annum (MTPA), a full year ahead of its original FY27 target, according to Chairman Kumar Mangalam Birla.

Speaking at the company’s Annual General Meeting, Birla highlighted UltraTech’s growing dominance in the global cement industry: “UltraTech is now well-positioned to become the world’s largest cement seller outside of China.”

Currently, the global leader is China National Building Material Co., with a capacity exceeding 500 MTPA.

UltraTech Growing Capacity

As of March 2025, UltraTech’s installed capacity stood at 188.8 MTPA. This implies the company plans to add approximately 28.8 MTPA through organic expansion in FY26. To support this aggressive growth, UltraTech has earmarked a capital expenditure of ₹9,000–10,000 crore for FY26, as stated by Managing Director K.C. Jhanwar in the company’s annual report.

Heightened Movement in Cement Sector

The Indian cement sector continues to see heightened activity. JSW Group, through JSW Cement Ltd, recently entered the public markets. Initially launched in the south to utilise slag from its steel operations, JSW Cement now operates with a grinding capacity of 20.6 MTPA and plans to double this to 42 MTPA over the next four years. However, Managing Director Parth Jindal emphasised that the company will rely on organic growth, citing limited balance sheet strength to aggressively pursue asset acquisitions.

Other major players in the Indian cement landscape include Shree Cement, Dalmia Bharat, Nuvoco Vistas, and Ramco Cement.

The industry has recently been shaped by an intense rivalry between the Adani Group and Aditya Birla Group, leading to margin pressures across the sector.

Also Read: HAL Share Price in Focus: Government Approves ₹62,000 Crore Deal

UltraTech FY25 Financial Highlights

For FY25, UltraTech reported a net revenue of ₹75,955 crore, with EBITDA of ₹13,302 crore. Sales volumes rose 14% year-on-year to 135.83 million tonnes. However, EBITDA margins softened to 17%, down from 19% in FY24, reflecting the challenging competitive environment.

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