UltraTech Cement Surpasses 200 MTPA Capacity, Declares Record Dividend

UltraTech Cement achieved a significant milestone in FY26, crossing 200 MTPA capacity and becoming the largest cement company outside China. The company reported robust financial performance, with consolidated net revenue up 17% to Rs 88,512 crore and Profit After Tax (PAT) surging 36% to Rs 8,188 crore. The Board recommended a special dividend of Rs 240 per equity share, amounting to Rs 7,072.3 crore, the highest in the company's history.

What just happened

UltraTech Cement announced a series of significant achievements for the fiscal year ending March 2026 (FY26) and the first quarter of FY27 (Q1 FY27). Key highlights include crossing 200 MTPA operational capacity, a record PAT of Rs 8,188 crore for FY26, and a substantial 16% year-on-year growth in Q1 FY27 net sales to Rs 24,465 crore. The company also declared a record special dividend of Rs 240 per share.

Why this matters

This marks a major expansion for UltraTech, positioning it as a global cement leader outside China. The strong financial results and the record dividend payout demonstrate robust operational efficiency and profitability, providing a significant return to shareholders. The planned Rs 16,000 crore investment for further capacity expansion signals strong future growth prospects.

The backstory

UltraTech Cement has consistently focused on expanding its manufacturing capabilities and market reach. In FY26, its consolidated revenue grew by 17% and EBITDA by 32%. The company's operational cash flows saw a 50% year-on-year increase, reaching Rs 14,398 crore, indicating strong financial health and a manageable Net Debt-to-EBITDA ratio of 0.942x.

What changes now

With the new capacity milestone achieved, UltraTech Cement is setting sights on exceeding 240 MTPA by FY28, backed by a Rs 16,000 crore investment. The company is also diversifying into the Wires and Cables business, expected to launch in Q3 FY27, further broadening its product portfolio in the building materials sector.

Risks to watch

Key risks for investors include the execution of the ambitious expansion plans, potential volatility in raw material prices, and competitive pressures within the Indian cement industry. The successful integration and performance of the new Wires and Cables business will also be crucial.

Peer comparison

UltraTech Cement is now the largest cement producer globally outside of China, signifying a dominant position in the industry. The company's capacity and financial performance are benchmarks for other major cement players in India.

Context metrics (time-bound)

• FY26 Consolidated Revenue: Rs 88,512 crore (17% increase)
• FY26 EBITDA: Rs 17,598 crore (32% increase)
• FY26 PAT: Rs 8,188 crore (36% increase)
• Q1 FY27 Net Sales: Rs 24,465 crore (16% increase)
• Q1 FY27 PAT: Rs 2,604 crore (17% increase)
• Special Dividend: Rs 240 per share (Total Rs 7,072.3 crore)
• Planned Investment: Rs 16,000 crore for capacity expansion to >240 MTPA by FY28.

What to track next

Investors will be keen to monitor the progress on capacity expansion towards the 240 MTPA target, the successful launch and performance of the Wires and Cables business, and future dividend declarations. The company's sustainability initiatives, particularly its Net Zero commitment by 2050, will also be a key area of focus.