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UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

Concrete

UltraTech’s Kukurdih unit runs fully on green energy

The Chhattisgarh plant has met 100 per cent of its electricity needs through green energy since April 2026.

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UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.
The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.
Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.
The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.
As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.
Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.

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Concrete

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement prices rose in September as companies weighed further increases.

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Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.

The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.

The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.

South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.

Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.

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Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant

Project receives incentives of up to Rs. 11.29 bn from state

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The Andhra Pradesh government has approved a greenfield cement project worth Rs. 30 bn by My Home Industries, along with incentives of up to Rs. 11.29 bn. The decision comes amid a political controversy in Telangana involving allegations about landholdings associated with My Home Group.

According to an Industries and Commerce Department order issued on September 25, 2026, the project is expected to create 2,000 jobs and begin commercial production by March 2029. The proposed facility will have capacity to produce 3.5 MTPA of clinker and 3.5 MTPA of cement.

The total investment includes fixed capital investment of Rs. 25.97 bn, pre-operative expenses of Rs. 2.23 bn, contingencies of Rs. 1.26 bn and working capital margin of Rs. 540 mn. The incentive package is capped at Rs. 11.29 bn, equivalent to up to 43.48 per cent of fixed capital investment, subject to completion of the committed investment by March 2029.

The package includes a capital subsidy of 39 per cent of eligible fixed capital investment, capped at Rs. 9.43 bn, payable over 10 years from the start of commercial production. It also provides reimbursement of Rs. 1 per unit on electricity purchased from distribution companies for 10 years, subject to a ceiling of Rs. 1.86 bn. A further incentive equivalent to 2 per cent of fixed capital investment is linked to the creation of the committed jobs and other policy conditions.

The state has approved the allotment of 27.19 acres through the Andhra Pradesh Industrial Infrastructure Corporation at actual cost. The project also involves land linked to two temples and the realignment of a canal across approximately 9.93 acres, with conditions requiring alternative temple facilities and company-funded infrastructure work. Telangana Chief Minister A. Revanth Reddy has separately raised allegations concerning land associated with My Home Group, including 2,463 acres near Shamshabad. The allegations remain subject to verification through official records and any investigations.

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