UltraTech Cement plans wires-and-cables entry in Q3 FY27 as capacity expansion accelerates

HDFC Securities expects UltraTech Cement to sustain market-share gains through distribution expansion, rising capacity and efficiency gains. The brokerage has a Buy rating and Rs 13,700 target price; UltraTech plans to enter wires and cables in Q3 FY27.

— Source published Thu, 20 Aug, 2026, 11:10 IST · First seen Thu, 20 Aug, 2026, 11:57 IST · Source NDTV Profit

What happened

HDFC Securities expects UltraTech Cement to sustain share gains through distribution strength, capacity expansion and efficiency-led margin improvement.

Key facts

  • Buy rating
  • Target price: Rs 13,700 per share
  • 17x FY28E consolidated EBITDA
  • Estimated volume CAGR: 9% for FY26-FY28E
  • Capacity expansion: 197 million metric tonnes in FY26 to over 240 million metric tonnes by FY28-end/early FY29
  • Estimated margin: Rs 1,337/MT in FY28E versus Rs 1,103/MT in FY26E
  • RMC revenue CAGR: 35% over the past five years

Why this matters

UltraTech’s entry into wires and cables illustrates a move toward adjacent, channel-synergistic building-material categories, raising the strategic value of complementary product, distribution and partnership targets.

What to watch

  • Disclosure of wire-and-cable capex, plant location, capacity and target product segments.
  • BIS/quality certifications, copper and aluminium sourcing arrangements, and launch of distributor appointments.
  • Whether UltraTech uses existing cement dealers or builds a separate electrical trade channel.
  • Early dealer margins, product warranty terms, pricing versus Polycab, Havells, KEI, RR Kabel and Finolex Cables.
  • Cement volume growth, utilization rates and net-debt trend as capacity moves toward more than 240mt by FY28-end/early FY29.
  • Management guidance on revenue, EBITDA margin and break-even timing for the new business.
  • Announce manufacturing location, planned wire-and-cable capacity, capital expenditure and commissioning timeline ahead of Q3 FY27.
  • Recruit electrical-industry leadership and establish technical, quality-certification and procurement capabilities.
  • Pilot products through selected UltraTech dealers, electrical distributors and contractor networks before a wider rollout.
  • Bundle dealer incentives or construction-solution offerings with cement, ready-mix concrete, waterproofing and wires.
  • Use cement-led cash generation to fund expansion, potentially increasing competitive intensity in both cement and electrical categories.