India Cements Q2: Profit Jumps, But the Quarter-on-Quarter Picture Isn't Entirely Clear
UltraTech's subsidiary India Cements announced its September-quarter results on October 17. The numbers look good at first glance, but look a little closer and the story splits into two parts.
What the numbers show
Domestic cement sales rose 16.2% to 2.83 million tonnes. EBITDA jumped 34% to ₹148 crore, against ₹110 crore a year ago. Operating EBITDA per tonne stood at ₹510, up ₹177 in a year. Revenue, however, showed little muscle. It rose from ₹1,117 crore to ₹1,142 crore, roughly two per cent.
The profit math is a bit tangled. PAT before exceptional items rose from ₹15 crore to ₹39 crore, a 160% jump. Reported PAT went from ₹9 crore to ₹39 crore, nearly four times. Both are correct; the base is simply different.
Quarter on quarter, the picture fades a little. In Q1, EBITDA was ₹159 crore and PAT before exceptional items was ₹52 crore. Reported PAT, though, did rise from Q1's ₹26.85 crore.
Where did the profit come from?
The answer lies in costs. Power cost fell from ₹615 to ₹527 per tonne. The company raised the renewable share of its power mix from 7.1% to 24.7%, while expensive captive thermal power dropped from 23.8% to 5.6%. Raw material costs fell 6%, and the brand transition brought some relief in marketing spend.
But it is not all rosy. Fuel cost climbed 14% to ₹1,143 per tonne. The company now runs on 74% US coal, with pet coke down to 16%. Packing cost also rose 37% over the year.
The shareholding picture
After UltraTech took control in December 2024, its stake stood at 81.49%. In the August 2025 offer for sale it sold about 1.82 crore shares, bringing its holding down to 75.60%. It has stayed at 75% since December 2025.
The real change came from mutual funds. In March 2025 they held barely 0.89%; by June 2026 that had risen to 9.40%. FIIs hold 3.39% and retail investors about 7.49%. No promoter shares are pledged. The September-quarter pattern is yet to come.
Who are the rivals?
In the south, India Cements faces Ramco Cements, Dalmia Bharat and Chettinad, among others. Sagar Cements, Orient Cement and Andhra Cements are smaller players in the same region. The difference is that India Cements has the country's largest cement company, UltraTech, standing behind it.
Strengths
The biggest strength is UltraTech's name, network and resources. The company has approved ₹2,000 crore of investment, of which about ₹1,728 crore had been committed by September. The roadmap is to raise capacity from 14.45 to 17.55 MTPA by FY28. For FY29, the target is to take green power (RE plus WHRS) from 6% to 80%, which could pull power costs down further if achieved.
Weaknesses
Dependence on fuel, and its rising price, is the biggest risk. Net debt rose from ₹1,271 crore in March to ₹1,591 crore. The alternative fuel share fell from 4.1% to 2.4% because the feeding system was shut down for modifications. Net realisation also slipped 1.3% quarter on quarter.
What next?
According to the company, upgrade work will continue through Q3 and Q4, so the shutdown impact may show up in coming quarters. Investors will watch whether this cost improvement holds, or whether costlier fuel eats into it.
