UltraTech Cement crosses 200 mtpa, targets 240 by FY28

What changed for UltraTech Cement

UltraTech Cement has crossed 200 million tonnes per annum (mtpa) of installed cement manufacturing capacity in India, becoming the world’s largest cement company outside China. The Aditya Birla Group company said it has surpassed the 200 mtpa milestone after commissioning additional capacities. The development matters because capacity, distribution reach, and cost efficiency are key competitive levers in India’s cement market. UltraTech also reiterated that it is pursuing a multi-year expansion programme to take capacity to 240 mtpa by FY28. The company’s disclosures and management commentary over the past year underline a mix of organic expansion, acquisitions, and efficiency-led spending.

Management commentary on the expansion target

Kumar Mangalam Birla, chairman of the Aditya Birla Group, framed the milestone as a step in a longer plan rather than an end point. He said the company’s target of 240 mtpa by FY28 is already “in motion” with an investment plan of ₹16,000 crore. Separately, UltraTech has also disclosed a capacity expansion plan of ₹10,255 crore aimed at adding 22.8 mtpa, including projects linked to its subsidiary India Cements Ltd. The company has said commercial production from these projects will begin in phases from FY28. Across statements, the common thread is that UltraTech expects the bulk of new capacity to start coming on stream from FY28 onward.

New grinding units commissioned and where they are located

UltraTech commissioned three new cement grinding units with a cumulative capacity of 8.7 mtpa. The facilities are located in Shahjahanpur (Uttar Pradesh), Patratu (Jharkhand), and Vizag (Andhra Pradesh). The company said these locations were chosen to strengthen regional supply. It highlighted North India’s construction corridor, Jharkhand’s industrial base, and Andhra Pradesh’s urbanising coastal belt as demand drivers. Grinding units can help improve market serviceability and logistics efficiency because cement is bulky and freight costs are material to profitability.

Consolidated capacity and overseas footprint

UltraTech’s consolidated global capacity stands at 205.5 mtpa, as stated in the provided material. This includes 5.4 mtpa from operations in the UAE, Bahrain, and Sri Lanka. In other disclosures in the same set of text, UltraTech has also reported its total grey cement production capacity at 192.26 mtpa and consolidated capacity at 188.8 mtpa as of March 2025, rising to 192.26 mtpa after additions in Q1 FY26. These figures appear across different reporting snapshots and definitions (installed capacity, grey cement capacity, and consolidated capacity). What is consistent is the company’s stated direction of travel: crossing 200 mtpa and pushing toward about 240 mtpa by FY28.

Capex guidance: FY26 spending and multi-year commitments

UltraTech said it will complete investing ₹9,000 to ₹10,000 crore in the current fiscal toward capacity expansion, sustainability, and logistics. In another disclosure, it earmarked up to ₹10,000 crore in capital expenditure for FY26 for capacity expansion and energy and efficiency initiatives, while indicating an expectation of around 7% growth in FY26. The company also said it spends over ₹16,000 crore every year on logistics and that its annual procurement basket exceeds ₹27,000 crore. These cost heads are important because scale benefits in procurement and freight can shape competitiveness, especially during periods of regional demand-supply imbalance.

Expansion blueprint and capacity additions cited

The provided material includes a project table describing a ₹10,255 crore expansion blueprint. The company said the investment will support organic and inorganic growth and take total capacity to 240.76 mtpa by FY28. Strategic locations mentioned include Rajasthan, Uttar Pradesh, Tamil Nadu, and Odisha.

Operating footprint, distribution, and demand exposure

UltraTech’s operational footprint includes 34 integrated units, 30 grinding units, and 9 bulk terminals across India, as per the text. It also has a network of over 145,000 channel partners and covers more than 80% of India’s geography. The company said 65% of its trade sales come from rural India, pointing to demand sensitivity to housing and local infrastructure activity. The Union Budget allocation of ₹1,121,000 crore for infrastructure was also cited as a demand tailwind the company expects to support cement consumption.

Financial performance and key metrics cited

UltraTech reported FY25 net revenue of ₹75,955 crore and EBITDA of ₹13,302 crore. Sales volumes rose over 14% year-on-year to 135.83 million tonnes in FY25. For Q1 FY26, it reported revenue of ₹21,275 crore, EBITDA of ₹4,591 crore, and profit after tax of ₹2,226 crore. The company also disclosed that its net debt to EBITDA ratio rose to 1.33x in March 2025, with management stating it expects higher volume growth and an improving EBITDA profile to reduce this.

Market impact and competitive context

UltraTech’s expansion programme is playing out in a market where scale and acquisitions have reshaped capacity rankings. The text notes that UltraTech added 42.6 mtpa in FY25, with 16.3 mtpa through organic expansion and 26.3 mtpa through acquisitions such as India Cements and Kesoram Industries. In the same competitive landscape, Adani Group’s Ambuja Cements crossed 100 mtpa in FY25 and has targets of 118 mtpa by FY26 and 140 mtpa by FY28. UltraTech has also cited a market share of about 24% in India. For investors, the key measurable issues are capex intensity, timelines of commissioning from FY28, and the ability to protect margins amid higher freight and integration costs.

Analysis: why the 200 mtpa mark matters

Crossing 200 mtpa strengthens UltraTech’s ability to serve multiple regional markets with shorter lead distances, which can reduce delivered cost and improve service levels. The commissioning of grinding capacity in Uttar Pradesh, Jharkhand, and Andhra Pradesh aligns with this approach because grinding units are typically closer to end markets. At the same time, the disclosed capex range of ₹9,000 to ₹10,000 crore for the current fiscal and the ₹10,255 crore expansion plan indicate sustained investment through FY28. The company’s stated reliance on rural trade demand (65% of trade sales) also implies that regional demand conditions can influence utilisation rates and pricing, which remain key to cash flow generation during an expansion cycle.

Conclusion

UltraTech Cement’s move past 200 mtpa and its stated ambition to reach around 240 mtpa by FY28 underline an expansion cycle backed by multi-year capex plans, new grinding capacity, and recent acquisitions. The company has said new capacities under the latest projects will begin commercial production in phases from FY28. Over FY26, UltraTech has guided for up to ₹10,000 crore of capex focused on capacity, energy, and efficiency initiatives, while continuing to integrate acquired assets and expand its footprint.