INDIACEM - India Cements
📢 Recent Corporate Announcements
The National Company Law Tribunal (NCLT), Chennai, has sanctioned the Scheme of Amalgamation for four wholly-owned subsidiaries into India Cements Limited. The subsidiaries involved include ICL Financial Services, ICL International, ICL Securities, and India Cements Infrastructures. The merger is effective from the appointed date of January 1, 2025, following the NCLT order dated March 9, 2026. This move is expected to simplify the corporate structure and streamline operations.
- NCLT Chennai sanctioned the merger of 4 wholly-owned subsidiaries with the parent company.
- The appointed date for the Scheme of Amalgamation is January 1, 2025.
- Subsidiaries involved: ICLFSL, ICLIL, ICLSL, and India Cements Infrastructures Limited.
- The company is awaiting the certified copy of the order to file with the Registrar of Companies (RoC).
The India Cements Limited has scheduled a Board of Directors meeting for April 25, 2026, to review and approve the audited financial results for the fiscal year ending March 31, 2026. In accordance with SEBI insider trading regulations, the company will close its trading window for designated persons from April 1, 2026. The window is expected to reopen on April 27, 2026, which is 48 hours after the financial results are declared. This is a routine regulatory filing that sets the timeline for the company's annual earnings disclosure.
- Board meeting scheduled for April 25, 2026, to approve standalone and consolidated audited results.
- Trading window for designated persons closed from April 1, 2026, to April 27, 2026.
- The announcement complies with Regulation 29 of SEBI (LODR) Regulations, 2015.
UltraTech Cement reported a robust Q3 FY26, highlighting a strong infrastructure-led demand pipeline across India. The company has successfully achieved 58% brand conversion for India Cements and 69% for Kesoram, with India Cements reporting an EBITDA of INR 400 per ton. Management is targeting a net debt to EBITDA ratio of 0.8x-0.9x by the end of the fiscal year, down from the current 1.08x. Capacity utilization is expected to exceed 90% in Q4 FY26, driven by massive government spending on metros and highways.
- Net debt to EBITDA improved to 1.08x, with a target to reach below 1x by fiscal year-end.
- India Cements brand conversion reached 58% with a long-term EBITDA target of INR 1,000 per ton.
- Operational efficiency improved with lead distance dropping to 363 km and clinker conversion at 1.49.
- Committed INR 601 crore for India Cements efficiency capex and INR 382 crore for Kesoram.
- New cables and wires business on track for Q3 FY27 launch with INR 500 crore in orders placed.
The India Cements Limited has informed the exchanges that the audio recording of its earnings call for the quarter and nine months ended December 31, 2025, is now available. This disclosure is made in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015. The recording provides management's perspective on the financial performance and operational highlights for the period. Investors can access the audio on the company's official website to understand the underlying business trends and future outlook discussed during the call.
- Audio recording of the Q3 and 9M FY26 earnings call is now available on the company's website.
- The call pertains to the financial results for the period ended December 31, 2025.
- Disclosure follows the initial meeting notification sent on January 02, 2026.
- Compliance maintained with SEBI Listing Obligations and Disclosure Requirements Regulations.
The India Cements Limited reported a significant operational turnaround in Q3 FY26, with consolidated EBITDA reaching ₹103 Crores compared to a loss of ₹178 Crores in the same quarter last year. Domestic sales volumes grew by 25% YoY to 2.59 MnT, driven by an 11% improvement in capacity utilization to 69%. The company announced a major ₹2,000 Crore capex plan over the next two years to expand capacity to 17.55 Mtpa and enhance efficiency. While realizations dipped 2.4% QoQ, substantial reductions in logistics costs (down 44% YoY) and fuel costs (down 18% YoY) supported the bottom line.
- Consolidated EBITDA turned positive at ₹103 Crores vs a loss of ₹178 Crores in Q3 FY25.
- Domestic sales volume increased 25% YoY to 2.59 MnT with capacity utilization rising to 69%.
- Logistics costs declined sharply by 44% YoY to ₹588/Mt, and fuel costs fell 18% to ₹952/Mt.
- Announced ₹2,000 Crore capex to increase total capacity from 14.75 Mtpa to 17.55 Mtpa by March 2027.
- Targeting a massive shift in energy mix, aiming for 80% green power by FY29 from the current 5%.
India Cements reported a significant operational turnaround in Q3 FY26, with revenue from operations rising 23.5% YoY to ₹1,114.13 Cr. The company drastically narrowed its net loss to ₹5.72 Cr from a massive loss of ₹409.38 Cr in the same quarter last year. Operating margins turned positive at 7.14%, a sharp recovery from the negative 20.88% recorded in Q3 FY25. The results reflect the first full quarter under UltraTech Cement's ownership, showing improved cost efficiencies and lower finance costs.
- Revenue from operations increased to ₹1,114.13 Cr, up 23.5% from ₹902.19 Cr in Q3 FY25.
- Net loss narrowed to ₹5.72 Cr compared to a loss of ₹409.38 Cr in the previous year's corresponding quarter.
- Operating margin improved significantly to 7.14% from -20.88% YoY.
- Finance costs were reduced by 58.7% YoY to ₹30.46 Cr, down from ₹73.77 Cr.
- Recognized a one-time exceptional expense of ₹7.72 Cr related to the implementation of new Labour Codes.
The India Cements Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all share certificates received for dematerialization during the quarter ended December 31, 2025, have been processed. The company's Registrar, Integrated Registry Management Services Private Limited, has verified and cancelled the physical certificates. This ensures that the electronic records with NSDL and CDSL are updated and the shares remain listed on BSE and NSE.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar Integrated Registry Management Services confirmed the cancellation of physical share certificates.
- Depository names have been substituted as registered owners in the company records.
- Notification of dematerialized securities forwarded to both BSE and NSE.
The India Cements Limited has announced its Q3 FY26 earnings call, which is scheduled for Saturday, January 24, 2026, at 4:00 PM IST. The call is being organized by UltraTech Cement Limited, the company's holding entity, to discuss financial results for the quarter ended December 31, 2025. The session will feature a management discussion followed by an interactive Q&A. This marks a key reporting period for the company under the UltraTech umbrella.
- Earnings call for Q3 FY26 scheduled for January 24, 2026, at 16:00 hrs IST.
- Financial results for the quarter ended December 31, 2025, to be discussed.
- Call hosted by UltraTech Cement Limited, the holding company of India Cements.
- Universal access numbers provided: +91 22 6280 1286 and +91 22 7115 8187.
The India Cements Limited has received three separate GST demand orders from authorities in Chennai, Vijayawada, and Hyderabad, primarily relating to the financial year 2021-22. The most significant demand comes from the Vijayawada division, totaling approximately ₹54.39 crore, which includes ₹32.66 crore in tax and ₹21.73 crore in interest. Additional orders from Chennai and Hyderabad contribute roughly ₹3.5 crore in further demands and penalties. The company intends to contest these orders, asserting that its previous submissions were not adequately considered by the authorities.
- Total GST demand from Vijayawada authority amounts to ₹32.66 crore plus ₹21.73 crore in interest.
- Hyderabad authority confirmed demands of ₹2.23 crore along with penalties and late fees.
- Chennai authority passed an order for ₹54.99 lakh GST plus ₹42.09 lakh in interest and penalties.
- The disputes involve alleged excess Input Tax Credit (ITC) claims and short payment of taxes for FY 2021-22.
- The company is reviewing legal options to contest the demands and expects no immediate material impact.
The India Cements Limited has received an order from the Joint Commissioner of GST & Central Excise, Chennai South Commissionerate, for the financial year 2021-22. The order confirms a tax demand of ₹6.42 crore along with a penalty of ₹64.20 lakh and applicable interest. The dispute relates to alleged Input Tax Credit (ITC) mismatches and ITC reversals on exempted turnover. The company intends to contest the demand through legal channels and does not expect a material impact on its financial or operational activities.
- Tax demand amounting to ₹6,41,95,069 confirmed for FY 2021-22.
- Penalty of ₹64,19,507 imposed by the GST & Central Excise authority.
- Issues involve alleged ITC mismatches and reversal of ITC on exempted turnover.
- Company plans to contest the order and believes there is no material financial impact.
The India Cements Limited has issued a clarification to the stock exchanges regarding a recent significant increase in the trading volume of its securities. The company stated that it is in full compliance with all disclosure requirements under Regulation 30 of the SEBI (LODR) Regulations, 2015. Management confirmed that there is no undisclosed information or impending announcement that could impact the price or volume of the stock. This response follows a formal inquiry from the NSE and BSE dated December 17, 2025.
- Company responded to NSE and BSE inquiries regarding unusual trading volume on December 18, 2025.
- Confirmed full compliance with SEBI (LODR) Regulations, 2015, specifically Regulation 30.
- Stated no material information or price-sensitive announcements are currently pending.
- The volume spurt is attributed to market activity rather than undisclosed corporate developments.
Financial Performance
Revenue Growth by Segment
Standalone Net Sales declined by 17.28% YoY from INR 4,942.43 Cr in FY24 to INR 4,088.47 Cr in FY25. Consolidated revenue for Q2 FY26 stood at INR 1,117 Cr, showing a recovery trend compared to the average quarterly run rate of FY25.
Geographic Revenue Split
Not explicitly disclosed by percentage, but operations are primarily concentrated in Southern India with the corporate office in Chennai and plants being integrated into UltraTech's national network.
Profitability Margins
Operating Margin deteriorated from 0.03% in FY24 to -8.13% in FY25. Net Profit Margin for FY25 was -16.33% due to a loss of INR 667.56 Cr. However, Q2 FY26 consolidated EBITDA margin improved to 9.85% (INR 110 Cr EBITDA on INR 1,117 Cr revenue).
EBITDA Margin
Consolidated EBITDA margin for Q2 FY26 was 9.85%, a significant turnaround from the negative EBITDA of INR 332.42 Cr reported in FY25. The improvement is attributed to higher capacity utilization and operational efficiencies post-takeover.
Capital Expenditure
The company has planned a capital expenditure of ~INR 1,500 Cr for the integration of plants with UltraTech's operational systems and for efficiency improvements. Historical CWIP stood at INR 187 Cr as of March 2021.
Credit Rating & Borrowing
Credit rating was significantly upgraded to CARE AAA; Stable for long-term facilities and CARE A1+ for short-term facilities following the UltraTech takeover. Interest and finance charges for FY25 were INR 276.65 Cr, representing 6.7% of net sales.
Operational Drivers
Raw Materials
Materials consumed (limestone, gypsum, fly ash) accounted for 19.16% of revenue (INR 214 Cr in Q2 FY26). Power and Fuel (coal, petcoke) is the largest cost driver at 32.86% of revenue (INR 367 Cr in Q2 FY26).
Import Sources
Not specifically disclosed in available documents, though cement operations typically source limestone from captive mines in India and fuel (coal/petcoke) from domestic and international markets.
Key Suppliers
Not specifically named in the documents, but the company is now a subsidiary of UltraTech Cement Limited, which manages procurement.
Capacity Expansion
Current installed capacity is 14.5 MTPA as of FY25, reduced from 15.6 MTPA in FY24 following the sale of the Parli grinding unit. Parent entity UltraTech is expanding toward a 200 MTPA group-wide target.
Raw Material Costs
Total expenses for Q2 FY26 were INR 1,036 Cr. Power and fuel costs decreased as a percentage of total expenditure compared to FY25 levels due to better operational leverage and integration efficiencies.
Manufacturing Efficiency
Capacity utilization improved in the last quarter of FY25 following the management change. Operating leverage impact due to lower sales volume was noted at ~INR 70 per ton.
Logistics & Distribution
Logistics costs accounted for 17.7% of revenue in Q2 FY26 (INR 198 Cr). The company is focusing on optimizing lead distances through UltraTech's distribution network.
Strategic Growth
Expected Growth Rate
33%
Growth Strategy
Growth will be achieved through the integration of ICL plants with UltraTech's operational efficiencies, a ~INR 1,500 Cr capex for modernization, and leveraging the parent's strong financial profile to lower borrowing costs. Asset monetization (INR 2,300 Cr inflow from land/building sales) has already strengthened the balance sheet.
Products & Services
Cement bags (including variants like Coromandel Cement), clinker, and ready-mix concrete.
Brand Portfolio
Coromandel Cement, Sankar Cement, and Raasi Gold (implied by historical context and 'Coromandel Towers' headquarters).
New Products/Services
Not specifically detailed, but focus is on brand transitions and aligning product mix with UltraTech's premium offerings.
Market Expansion
Focusing on the Southern Indian market and strengthening presence in regions served by the 14.5 MTPA capacity. Integration with UltraTech provides access to a wider national distribution network.
Market Share & Ranking
The company is a major player in South India; its parent, UltraTech, is the market leader in the Indian cement industry.
Strategic Alliances
The company is now a subsidiary of UltraTech Cement Limited (Aditya Birla Group) following a change in management and control in December 2024.
External Factors
Industry Trends
The industry is undergoing consolidation, evidenced by UltraTech's acquisition of India Cements. Future growth is driven by urban real estate, data centers, and large-scale government infrastructure projects.
Competitive Landscape
Operates in a highly competitive market against players like Adani Cement (ACC/Ambuja) and Dalmia Bharat, but now benefits from UltraTech's scale.
Competitive Moat
The primary moat is now the 'substantial cushion' provided by UltraTech's financial risk profile and the cost leadership expected from integrating into the world's third-largest cement producer (excluding China).
Macro Economic Sensitivity
Highly sensitive to infrastructure spending and GDP growth. Demand is linked to major projects like the Vadhavan Port, Amravati development, and the new Mumbai Airport.
Consumer Behavior
Shift toward branded cement and demand for higher-grade specialized cement for infrastructure projects.
Geopolitical Risks
Global supply and demand conditions affecting input prices (fuel) and domestic regulatory changes in tax or environmental laws.
Regulatory & Governance
Industry Regulations
Subject to environmental pollution norms for cement manufacturing and mining regulations for limestone extraction. Compliance is monitored by the Risk Management Committee.
Environmental Compliance
The company is investing in renewable energy (INR 14 Cr in H1 FY26) to meet ESG goals and reduce carbon footprint.
Taxation Policy Impact
Tax expenditure for FY25 was a credit of INR 126.81 Cr due to deferred tax adjustments on losses.
Legal Contingencies
The company settled a INR 765.19 Cr outstanding short-term loan with Sri Saradha Logistics Private Limited as part of a larger effort to reduce exposure to erstwhile promoter group entities.
Risk Analysis
Key Uncertainties
Fluctuations in cement selling prices and input cost volatility (Power/Fuel) represent the primary business risks, which impacted FY25 margins by over 800 basis points.
Geographic Concentration Risk
High concentration in Southern India, though integration with UltraTech mitigates this through a broader national logistics framework.
Third Party Dependencies
Reduced dependency on erstwhile promoter group entities; exposure decreased from INR 1,545 Cr in March 2024 to negligible levels by March 2025.
Technology Obsolescence Risk
Implementing SAP and MIS tools to modernize internal controls; ~INR 1,500 Cr capex is partially targeted at technological upgrades for manufacturing efficiency.
Credit & Counterparty Risk
Receivables quality is stable with a Debtors Turnover of 6.05 times in FY25. Exposure to group entities has been largely monetized or settled.