UltraTech Cement approves ₹5,000 crore NCD raise to fund capacity expansion
UltraTech Cement will raise up to ₹5,000 crore through privately placed non-convertible debentures as it accelerates capacity growth, with 15.9 MTPA planned for FY27 and 29.8 MTPA for FY28.
What happened
UltraTech Cement approved raising up to Rs 5,000 crore through privately placed NCDs as it expands capacity. The Aditya Birla Group company plans to add 15.9
Key facts
- Up to Rs 5,000 crore NCD fundraising
- Up to 500,000 NCDs
- Rs 100,000 face value per NCD
- Q1FY27 net profit Rs 2,600 crore, up 16.9% YoY
- Q1FY27 revenue Rs 24,648 crore, up 15.8% YoY
- EBITDA Rs 5,015 crore, up 13.7% YoY
- EBITDA margin 20.3%
- Grey cement volume 41.3 million tonnes, up 12.2% YoY
- Domestic sales volume 39.2 million tonnes, up 13.1% YoY
- Domestic grey cement capacity 200.1 MTPA
- Global capacity 205.5 MTPA
- FY27 planned capacity addition 15.9 MTPA
- FY28 planned capacity addition 29.8 MTPA
- India Cements Q1 net profit Rs 52 crore
Why this matters
UltraTech’s accelerated organic expansion may raise the strategic bar for acquisitions, partnerships and asset purchases as rivals seek scale in markets where new capacity could pressure share and pricing.
What to watch
- NCD issuance terms, especially coupon rate, maturity profile and whether the full ₹5,000 crore is drawn.
- Quarterly net-debt-to-EBITDA, interest coverage, operating cash flow and capex guidance.
- Commissioning dates and utilisation trajectory for the 15.9 MTPA FY27 and 29.8 MTPA FY28 capacity plans.
- Cement price movements, regional EBITDA-per-tonne trends and dealer incentive intensity.
- Capacity announcements and commissioning schedules from Adani Group/ACC/Ambuja, Shree Cement, Dalmia Bharat and other regional competitors.
- Infrastructure awards, housing starts, monsoon disruption and government capital-expenditure execution in key demand markets.
- Finalize tranche timing, coupon structure, tenor and investor allocation for the privately placed NCDs.
- Prioritize plant, grinding-unit and logistics investments in regions where freight savings and local demand can produce the fastest utilisation ramp.
- Use expanded distribution, ready-mix concrete and building-solutions channels to pull incremental cement volumes through the network.
- Maintain pricing discipline where possible while using selective dealer incentives or product mix to defend utilisation during new-capacity commissioning.
- Monitor debt metrics and potentially balance debt-funded expansion with operating cash flow, asset monetisation or other financing if the capex cycle accelerates further.