UltraTech Cement approves ₹5,000 crore NCD fundraise amid capacity expansion

Aditya Birla Group’s UltraTech Cement has approved a ₹5,000 crore private-placement NCD programme as it executes nearly ₹17,000 crore in capex and targets more than 242 mtpa consolidated capacity by FY27.

— Source publishedThu, 23 Jul, 2026, 15:59 IST·First seen Thu, 23 Jul, 2026, 16:09 IST·Source Business Standard · Companies

What happened

Aditya Birla Group’s UltraTech Cement approved a ₹5,000 crore private-placement NCD programme to support funding needs amid major capacity expansion. The

Key facts

  • ₹5,000 crore NCD fundraise
  • Up to 500,000 debentures
  • ₹1 lakh face value per debenture
  • ₹15,875 crore net debt as of June 2026
  • ~₹17,000 crore capex under execution
  • ₹9,500 crore FY26 capex
  • 200.1 mtpa domestic grey cement capacity
  • 205.5 mtpa global capacity
  • 242 mtpa consolidated capacity target
  • 212.7 mtpa grey cement capacity target by FY27
  • 0.87x net debt-to-EBITDA
  • ₹2,599.3 crore Q1FY27 net profit
  • ₹24,648.20 crore Q1FY27 revenue

Why this matters

UltraTech is using low-leverage debt to accelerate scale toward 242 mtpa by FY27, reinforcing its strategic advantage in a consolidating cement market.

What to watch

  • Quarterly capex commissioning progress versus the FY27 capacity target of more than 242 mtpa.
  • Net debt-to-EBITDA, interest cost and operating cash flow after NCD issuance.
  • Cement volume growth, capacity utilization and EBITDA per tonne in UltraTech's major regions.
  • Competitor capacity commissioning schedules and changes in regional cement prices.
  • Government infrastructure spending, housing demand and monsoon-related construction disruption.
  • Petcoke, coal, power and freight-cost trends that can offset scale benefits.
  • Sequence NCD issuances against capex milestones and interest-rate conditions rather than drawing the full programme immediately.
  • Prioritize high-utilization regional clusters, grinding capacity and logistics-linked projects that reduce delivered cost per tonne.
  • Use balance-sheet flexibility to secure limestone reserves, distribution assets or selective consolidation opportunities.
  • Defend realizations through regional supply discipline, premium-product mix and dealer-network expansion as new industry capacity comes online.
  • Monitor debt maturities and preserve sub-1x net-debt-to-EBITDA capacity for contingencies or acquisitions.