UltraTech Cement Targets 240 MTPA Capacity and ₹1,400 EBITDA per Tonne by FY28

UltraTech Cement aims to expand its cement manufacturing capacity to 240 million tonnes per annum (MTPA) by FY28 while targeting an operating EBITDA of ₹1,400 per tonne. The company is focusing on capacity expansion, operational efficiency, and financial discipline to strengthen its market leadership.

UltraTech Cement's Capacity Expansion Plans

UltraTech Cement has committed approximately ₹16,000 crore in capital expenditure to expand its cement manufacturing capacity beyond 240 MTPA by FY28. Its domestic grey cement capacity crossed 200 MTPA in FY27, strengthening its position as a leading cement producer outside China.

The expansion includes ongoing projects and the integration of acquired businesses. These initiatives are expected to improve production capacity, logistics efficiency, and the company's ability to meet growing cement demand.

Company Targets ₹1,400 EBITDA Per Tonne

UltraTech Cement is targeting an operating EBITDA of ₹1,400 per tonne by the fourth quarter of FY28. The company plans to improve profitability through operational efficiencies, better price realizations, cost optimization, and increased use of green energy.
The target comes amid continued pressure from fuel, freight, and other input costs. Expected cement price increases and improvements in the performance of acquired units are among the factors that could support margin growth.

Focus on Financial Discipline and Diversification

UltraTech Cement is maintaining a cautious approach to borrowing while investing in expansion. Its net debt-to-EBITDA ratio stood at 0.87 times as of Q1 FY27, below its internal limit of 1.0 times.
The company is also expanding beyond cement through its Ultravolt wires and cables business, backed by a planned investment of ₹1,800 crore. This move supports its broader strategy of offering a wider range of building material solutions.
With capacity expansion and profitability targets in place, UltraTech Cement aims to strengthen its position in India's growing construction and infrastructure market.

FAQs

1. What is UltraTech Cement's capacity target for FY28?

UltraTech Cement aims to increase its cement manufacturing capacity to more than 240 MTPA by FY28.

2. What is UltraTech Cement's EBITDA target per tonne?

The company is targeting an operating EBITDA of ₹1,400 per tonne by Q4 FY28.

3. How much capital expenditure has UltraTech Cement committed?

The company has committed approximately ₹16,000 crore towards its capacity expansion plans.

4. What is UltraTech Cement's net debt-to-EBITDA ratio?

The ratio stood at 0.87 times as of Q1 FY27, according to the source report.

5. What is UltraTech Cement's Ultravolt business?

Ultravolt is UltraTech Cement's wires and cables business, which expands its presence in the building materials sector.