UltraTech Cement expansion targets 240.76 MTPA

Why UltraTech’s capacity story matters now

UltraTech Cement’s expansion programme has continued through the quarter ended December 31, 2025, with new commissioning and a fresh board-approved capex cycle. The company’s additions and pipeline are being tracked closely because capacity growth is central to market share in a consolidating Indian cement sector. UltraTech also positions itself as the second-largest cement company globally by capacity and the largest by sales volumes outside China. The latest disclosures also show improving operating leverage, with capacity utilisation rising year-on-year during the quarter.

What the company commissioned in the quarter

During the quarter, UltraTech commissioned 0.6 mtpa of cement capacity at its grinding unit at Dhule Cement Works in Maharashtra. It also commissioned 1.2 mtpa at the integrated unit at Nathdwara Cement Works in Rajasthan. These were presented as part of the ongoing capacity expansion programme that the company has been executing in phases. The additions were also reiterated in a separate update that quantified the projects as 600,000 metric tons per year at Dhule and 1.2 million metric tons per year at Nathdwara.

Updated domestic and global capacity after the additions

After commissioning the Dhule and Nathdwara capacities, UltraTech said its domestic grey cement capacity stood at 188.66 mtpa. Including 5.4 mtpa in the UAE, UltraTech’s global capacity was stated at 194.06 mtpa. These figures reflect capacity at that point in time and are separate from other capacity disclosures made for different reporting dates. The company has also been referenced with a grey cement capacity of 192.26 MTPA in FY25-related disclosures, underlining that capacity numbers can vary by definition, consolidation scope, and cut-off date.

Operational performance: utilisation improved

UltraTech reported improved operational performance in the quarter ended December 31, 2025. Capacity utilisation increased to 77%, compared with 72% a year earlier. The company attributed the improvement to strong domestic cement demand. While the statement did not quantify demand growth, the utilisation change is a useful indicator of how effectively newly added and existing assets are being run.

The next expansion phase: 22.8 mtpa in the pipeline

UltraTech, along with its subsidiary India Cements Limited, has initiated the next phase of expansion to add 22.8 mtpa of capacity. The company said this will be executed through a mix of brownfield and greenfield projects, with work progressing as scheduled. Upon completion, UltraTech expects to reach a total capacity of 240.76 mtpa. The company has also said commercial production from these new capacities is expected to go fully on stream in a phased manner starting from FY28.

Board-approved capex: ₹10,255 crore

UltraTech Cement announced an investment of ₹10,255 crore to expand cement production capacity by 22.8 mtpa, including the capacity planned through its subsidiary India Cements Limited. This capex was approved by the Board of Directors at its meeting and was disclosed through a regulatory filing. The company’s communication said the investment will be executed through a mix of brownfield and greenfield expansion and will support the company’s capacity target of 240.76 mtpa at the end of the capex cycle.

Additional FY26 investment guidance and five-year roadmap

Separately, UltraTech has been reported to be completing an investment of ₹9,000–10,000 crore in the fiscal for capacity expansion, sustainability, and logistics. The company’s roadmap for the next five years has been framed around expanding its manufacturing footprint and market reach, scaling sustainability, and customer-centric innovation. Managing Director K.C. Jhanwar was quoted as saying the company remains on track to cross 200 MTPA in FY26, with capacity cited at 192.26 MTPA in that context.

Scale indicators beyond cement capacity

UltraTech has highlighted broader operating scale metrics alongside capacity growth. Over the past three years, it has reported adding 42.6 MTPA of capacity and expanding its ready-mix concrete (RMC) network to 400 plants across 160 cities. The company has also disclosed that installed green energy capacity rose to 1,371 MW, which can cater to 46% of current electricity requirements. In addition, UltraTech’s consolidated sales volume for the quarter was disclosed at 36.83 million metric tonnes, growing 9.7%, with acquisitions cited as a contributor.

Stock market and investor positioning

UltraTech shares have seen modest moves around these announcements. In one update, shares closed 0.7% higher at ₹12,855.70 on the BSE. Another market close data point put the stock at around ₹12,850 on the NSE, up 0.67%. The company’s message to shareholders has emphasised that it is aiming to cross the 200 MTPA milestone by the end of FY26, earlier than an earlier FY27 target referenced in the same context.

Key numbers at a glance

Analysis: what the expansion signals

The combination of higher utilisation and ongoing commissioning suggests UltraTech is adding capacity while keeping plants better loaded than the prior year. The 22.8 mtpa plan is sizeable and, if executed on the stated timeline beginning FY28, sets up a step-change in scale to 240.76 mtpa. The disclosures also show that UltraTech is using both organic and acquisition-led growth levers, with India Cements explicitly included in the capacity plan and recent volume growth linked to acquisitions.

Conclusion

UltraTech’s latest quarter reflected continued capacity commissioning, a year-on-year rise in utilisation to 77%, and an expansion blueprint that targets 240.76 mtpa after adding 22.8 mtpa. The company has said the new capacities will come on stream in phases starting FY28. Investors will watch the pace of execution, further commissioning milestones, and how closely utilisation tracks domestic demand as UltraTech approaches and moves beyond the 200 MTPA mark.