UltraTech fires up expansion, north peers left in the cold

Pan-India focused UltraTech Cement announced the fourth phase of its capacity expansion alongside its September quarter (Q2FY26) results last week.

- Harshajethmalani [e-mail]

The plan envisages 22.8 million tonnes (mt) of additional capacity in phases FY28 onward, with 18 mt in north and 4.8 mt in the west.

UltraTech will spend ₹10,255 crore on this expansion, largely funded through internal accruals. This implies an enterprise value (EV)/tonne cost of around $52, an attractive level that provides long-term visibility of market share gains, ICICI Securities said. However, its concentration in the north— the industry’s most profitable region—could stoke a capacity race, the brokerage cautioned in its 20 October note.