UltraTech hits 205.5 MTPA in FY26 expansion push

Milestone: 200 MTPA domestic capacity crossed

UltraTech Cement said it has crossed the 200 million tonnes per annum (MTPA) domestic capacity mark after commissioning additional capacity across three locations. In a regulatory filing, the company reported it commissioned 8.7 MTPA of cement capacity, taking total domestic capacity to 200.1 MTPA. With this expansion, UltraTech’s global cement manufacturing capacity increased to 205.5 MTPA, including 5.4 MTPA from overseas operations. The milestone strengthens UltraTech’s position as the largest cement manufacturer outside China by capacity, as indicated in the company’s updates. The announcement also comes amid broader efforts to scale capacity through a mix of organic expansion and acquisitions.

New units commissioned across three states

The newly operational capacities are concentrated in grinding units in North, East, and South India. UltraTech commissioned a 2.7 MTPA grinding unit at Shahjahanpur in Uttar Pradesh. It also started a 3.0 MTPA unit at Visakhapatnam in Andhra Pradesh, and another 3.0 MTPA grinding unit at Patratu in Jharkhand. These additions collectively account for the 8.7 MTPA commissioned capacity referenced in the filing. The spread across regions reflects UltraTech’s approach of expanding distribution reach and improving supply proximity to demand centres.

Utilisation and volumes: operational trends highlighted

Alongside capacity additions, UltraTech reported an improvement in capacity utilisation to 77%, up from 72% a year earlier. Domestic grey cement volumes grew 29.4% excluding India Cements and Kesoram, while the UltraTech brand recorded growth of 22.3%, as per the provided details. In another quarterly performance update, domestic grey cement volumes were also cited as up 15.4% year-on-year, contributing to consolidated sales volume growth of 15.0%. These volume and utilisation metrics were presented as indicators of better asset deployment and operating momentum.

Q3 FY26 financial performance: revenue, EBITDA, PAT

For the third quarter of fiscal year 2026 (Q3 FY26), UltraTech reported consolidated revenue of INR 215.06 billion (INR 21,506 crore), up 22.5% year-on-year. EBITDA rose 29% to INR 40.51 billion (INR 4,051 crore). Profit after tax (PAT) increased 32% year-on-year to INR 17.92 billion (INR 1,792 crore). The company linked this performance to strong operational execution and volume-led growth, while also noting that cement prices softened in parts of the quarter in certain regions.

Capex, leverage, and funding approach

UltraTech disclosed capex spending of INR 23.57 billion (INR 23,570 million) during the quarter referenced in the capacity update. It also reported a net debt-to-EBITDA ratio of 1.08x in that period. Separately, the annual report commentary cited a net debt-to-EBITDA ratio of 1.33x in March 2025, with management indicating expectations of reduction through higher volume growth and an improving EBITDA profile. The company has repeatedly said future expansion phases are planned to be funded through internal accruals.

Sustainability and energy mix: WHRS and green power

UltraTech reported adding 14 MW of new waste heat recovery capacity, taking total WHRS capacity to 383 MW. It also said green power accounted for 42.1% of its energy mix in that update. Another operational note referenced a green power mix of 39.5% following initiatives aimed at lowering power costs. These disclosures position energy efficiency as a parallel track to capacity expansion, alongside logistics and operational upgrades.

Expansion roadmap: FY26 to FY28-29 targets

UltraTech’s disclosed capacity roadmap spans multiple years and phases. It stated plans to add approximately 8-9 million tons in Q4 FY26, 12 million tons in FY27, and the balance in FY28, funded through internal accruals. In a separate disclosure, UltraTech’s target capacity addition for FY26 was cited as 14.1 MTPA, with target domestic capacity of 212.2 MTPA at the end of FY27. The company also announced a next phase of expansion starting FY28, with planned deployment of INR 102.55 billion to exit FY28-29 with a target capacity of 240.8 MTPA, implying capacity addition of 22.8 MTPA in that phase.

Inorganic growth: India Cements and Kesoram additions

UltraTech’s capacity scale-up has also been supported by acquisitions. The company said it recently acquired India Cements and the cement business of Kesoram Industries, adding 26.3 MTPA of grey cement capacity. It also outlined an organic expansion plan of 28.8 MTPA by FY27, as per the annual report-based update. In FY25, it reported adding 42.6 MTPA of consolidated grey cement capacity through organic and inorganic means, taking total capacity to 188.8 MTPA. As of June 30, 2025, consolidated capacity was cited as 192.26 MTPA in the provided text.

What changed for investors: margins, pricing, and operating risks

The company flagged that cement prices softened in parts of Q3 and referenced challenges such as the impact of the new Labour Code and regional issues like sand shortages. Even with these factors, management commentary in the provided excerpts indicated confidence of operating at over 90% of installed capacity in the January-March quarter. Another excerpt noted net profit dipped to INR 60.39 billion (INR 6,039 crore) due to pricing pressure, even as utilisation continued to outperform the industry average. These points frame the current cycle as a balance between strong volume growth and periodic pricing or cost headwinds.

Key figures at a glance

Conclusion: capacity scale-up remains the core theme

UltraTech’s latest commissioning takes domestic capacity beyond 200 MTPA and lifts global capacity to 205.5 MTPA, reinforcing its scale outside China. The company has paired expansion with improved utilisation, volume growth, and a stronger Q3 FY26 earnings profile. Its disclosed roadmap includes further commissioning in Q4 FY26 and additions through FY27, alongside a larger FY28-led phase targeting 240.8 MTPA by FY28-29. Investors will likely track execution timelines, pricing trends across regions, and the company’s leverage trajectory as new capacities ramp up.