INDIACEM - India Cements

📊 NSE: INDIACEM 🏢 Cement - South India 📅 Last Updated: 12/14/2025 7:57

💰 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.