The India Cements (INDIACEM) Q2 25/26 earnings summary

Executive summary

• Achieved sales of over 31 million tons of cement in Q2 FY26, with strong growth in premium and rural markets, and rapid brand conversion of acquired assets.

• Domestic sales volume reached 2.44 MnT in Q2 FY26, up 11.9% quarter-over-quarter, with average capacity utilization at 65%.

• Standalone and consolidated unaudited financial results for the quarter and half-year ended 30 September 2025 were approved, with continued operational focus on cement and related products.

• Brand sales grew 13.2% year-over-year, with rural market growth at 13% and industry rural growth estimated at 10%.

• Net cement realizations declined 0.6% quarter-over-quarter; operating EBITDA per metric ton was ₹386, down from ₹400 in Q1 FY26.

Financial highlights

• Sales volume growth of 22.3% year-over-year excluding UltraTech and Kesoram, 9.6% excluding UltraTech, and 6.8% including both.

• Revenue from operations for Q2 FY26 was ₹1,117 Crores, up from ₹1,007 Crores in Q2 FY25.

• Consolidated EBITDA improved to ₹110 Crores from a loss of ₹4 Crores in Q2 FY25.

• Standalone revenue from operations for Q2 FY26 was ₹1,117.15 crore, up from ₹1,024.63 crore in Q1 FY26, but net loss for the quarter was ₹6.86 crore, improving from a loss of ₹13.76 crore in Q1.

• PAT before exceptions turned positive at ₹15 Crores, compared to a loss of ₹116 Crores in Q2 FY25.

Outlook and guidance

• Brand transition for acquired assets to complete by June 2026, with synergy benefits expected to accelerate.

• Capex plan of ₹2,000 Crores over the next two years focuses on growth and efficiency improvements.

• Expansion to 24–25 million tons by FY29, with further brownfield and greenfield potential beyond 2030.

• Green power (RE + WHRS) targeted to scale from 5% to 80% by FY28.

• The company is undergoing restructuring, including the amalgamation of four wholly owned subsidiaries, pending regulatory approvals.