India Cements Q4 FY26: Volume Growth, Better Realisations, and a Fresh Capex Roadmap

The India Cements Limited reported a markedly stronger Q4 FY26, helped by higher volumes, improved capacity utilisation, and better realisations. Domestic sales volume rose to 3.12 million tons, up 18% year on year, while capacity utilisation improved to 84%, an 11% year on year increase. Net realisation, net of logistics cost, increased to 3,791 per ton in Q4 FY26 from 3,662 per ton in Q3 FY26, a 3.5% sequential uplift.

Profitability followed the operating momentum. Consolidated EBITDA increased to 179 crore in Q4 FY26 compared to 103 crore in Q3 FY26 and 23 crore in Q4 FY25. PAT before exceptional items was 70 crore versus 6 crore in Q3 FY26 and a loss of 75 crore in Q4 FY25. On a per ton basis, operating EBITDA was reported at 497 per ton in Q4 FY26, a sharp improvement over 305 per ton in Q3 FY26.

What changed in Q4: better utilisation and a steadier pricing environment

The quarter’s operating profile combined higher volumes with firmer realisations. The company also highlighted that brand migration was completed in March 2026. In parallel, the UltraTech Cement earnings call reiterated that brand conversion for India Cements was completed by end-March 2026. UltraTech management also noted that India Cements operates under a tolling arrangement where marketing and distribution costs sit with UltraTech, which affects where certain economics are recorded at the consolidated level.

On the sales mix, the investor presentation showed trade sales at 75% in Q4 FY26, unchanged versus Q3 FY26 and higher than 59% in Q4 FY25. The bag and bulk split was shown as 82% bag sales and 18% bulk sales.

Costs: fuel and power improved, raw materials rose

Cost trends in Q4 FY26 were mixed. Fuel and power costs eased, while raw materials moved higher.

Fuel was presented as 27% of total costs at 912 per ton, down 4% quarter on quarter and 16% year on year. Power was 18% of costs at 612 per ton, down 2% quarter on quarter and 5% year on year. Raw material cost, however, was 31% of total costs at 1,053 per ton, up 12% sequentially and 14% year on year.

The power mix disclosures suggest a broader effort to reduce delivered power cost and consumption intensity. Total power cost declined to 6.3 per kWh in Q4 FY26 versus 6.8 per kWh in Q4 FY25, while total power consumed reduced to 80.8 kWh per ton from 87.5 kWh per ton.

Capex and sustainability: two-year spend plan, FY29 green power targets

The investor presentation laid out a capex plan of 2,000 crore over the next two years, positioned as investing for growth and efficiencies. Key initiatives listed include converting 4 or 5 stage preheaters to 6 stage preheaters, cooler upgradation and process optimisation, adding 24 MW of WHRS, adding 263 MW of renewable power, expanding cement capacity by 2.8 MTPA, and implementing safety standards and employee engagement programs.

The ESG roadmap provides specific targets for energy sourcing. WHRS contribution was shown at 4% in FY26 with a target of 20% by FY29. Renewable power contribution was shown at 5% in FY26 with a target of 60% by FY29. The company also stated a plan to scale up green power, defined as renewable energy plus WHRS, from 6% to 80% by FY29.

Full year FY26: profitability recovered, but cash conversion remains a watch item

On a full-year basis, the company reported consolidated net sales of 4,454 crore in FY26 versus 4,132 crore in FY25. Consolidated EBITDA improved to 484 crore in FY26 from negative 174 crore in FY25. PAT before exceptional items was 82 crore in FY26 compared to a loss of 652 crore in FY25.

However, the FY26 cash flow statement highlights that operating cash flow was only 3 crore, driven by a working capital increase of 374 crore. After capex spends of 223 crore, receipts from assets held for sale of 98 crore and renewable energy investments of 14 crore, free cash flow to firm was reported at negative 136 crore.

The consolidated financial position table also showed net debt increasing from 1,135 crore as of Mar-25 to 1,271 crore as of Mar-26.

Closing takeaway

India Cements’ Q4 FY26 results reflect a clear operational improvement, supported by higher volumes, stronger utilisation, and rising realisations. The reported profitability recovery is also visible at the full-year level. The next phase is likely to be shaped by execution of the two-year capex plan and the FY29 green power roadmap, while working capital movement and cash flow conversion remain important variables to track as the investment cycle accelerates.