INDIACEM — earnings call

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Prepared remarks

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to the UltraTech Cement Limited Q1 FY27

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The first question is from Amit Murarka from Axis Capital.

Amit Murarka

Congratulations on a great result.

My question is now on capital allocation actually, like you seem to be well on track to exceed INR20,000 crores OCF maybe next year.

And you mentioned that the capex plan is like INR17,000-odd crores over the next 2, 2.5 years.

So how do you think this growing cash flow will get utilized across dividends, cement capex?

And is there any plan to scale up the cables and wires building material capex further?

Atul Daga

Amit, as of now, we are fully booked in terms of our cash flows.

All the operating cash flows will get ploughed back into growth.

And beyond that, also, there is dividends for shareholders.

As of now, I don't foresee any requirement for further investment in cables and wires.

They will now first mature and milk the investment that they have done.

So capital allocation to conclude, remains very committed to cement and shareholders.

Amit Murarka

Sure, sure.

And just a second question on India Cements.

So, I believe most of the targets you had in mind when you acquired the business is now nearing completion.

Just wanted to understand like what are the steps that remain before you contemplate, let's say, merging the business into a stand-alone entity itself?

Atul Daga

There is a capex program underway, which we mentioned has to get completed.

There are some non-core assets in terms of land, which we need to dispose of.

So Q4 '28 or maybe a quarter earlier, we expect to complete our journey.

So, there's a lot of work still happening.

When we look at operating parameters, there are certain operating parameters, which we still need to bring under control or in line with UltraTech's stand-alone performance.

UltraTech Cement Limited July 20, 2026

Amit Murarka

And is this fair to assume this time you've not reported the stand-alone volumes in the presentation or press release.

So fair to assume that the entire volume that is mentioned over there is basically stand-alone in terms of grey cement?

Atul Daga

Yes, please.

Amit Murarka

Stand-alone, I meant, UltraTech stand-alone basically...

Atul Daga

Yes, entire India Cements is part of UltraTech volume.

Moderator · Conference Operator

The next question is from Rahul Gupta from Morgan Stanley.

Rahul Gupta

So, a couple of questions.

One, you have talked about you growing faster than the industry over the past few years.

Now not just on volumes, you have been outperforming on cement pricing as well.

Now if we look at other large players, they are able to either prioritize volumes or they prioritize pricing.

But in your case, despite your base, you have been gaining share on both sides.

Can you please help us understand what is working for you and not for others?

That's my first question.

Atul Daga

Thank you, Rahul.

I think you already spoke for us, you give the answer.

But nonetheless, how should I begin?

I think UltraTech is a brand that customers trust.

Decades of consistent delivery, bag after bag, site after site, which has made UltraTech synonymous with reliability.

Quality that we swear by.

Every ton that goes out has to meet our quality standards.

It's not that there are no complaints, if there are complaints, product complaints, they have to get resolved ASAP.

Our complete network of plants, whether it's integrated plant, grinding units or bulk terminals, everything is focused on meeting the customers' requirements.

At Aditya Birla Group and as much as same as at UltraTech, the legacy of governance and ethical conduct is at its highest pecking order.

Dealers, institutional buyers, they know when they're dealing with UltraTech, that certainly is assurance for them and it requires and command a premium.

We are able to meet our customers' requirements wherever we are present with today almost 76 operating facilities spread across the country.

We are within the reach of a customer with a network of nearly 2,000 plus/minus warehouses, 150,000 channel partners across the country, our dedicated transporters, almost 50% plus of our transport service providers are dedicated to UltraTech.

All these things put together bring forward a power which is very unique to UltraTech.

I think, Rahul, it can be a commentary or a story, which I can tell you over a cup of coffee, which might extend for a couple of hours, but my story will not be complete.

But UltraTech today is in a position with more than what, 16,000 employees across the country and the network that I spoke about, our RMC plant network, which has been rapidly growing, 477 RMC plants, 5,000-plus UBS stores, which are dedicated dealers, if I can call them, dedicated outlets for UltraTech Cement besides any other building material clearly brings out a respect for UltraTech as a brand, which nobody else can come any close to.

UltraTech Cement Limited July 20, 2026

Rahul Gupta

Got it.

That's reassuring.

My second question is partly data keeping.

The last quarter, you mentioned that around INR20 per ton impact came in from the West Asia crisis.

What would be that number for this quarter?

And I know things are still volatile, but any guidance for the next quarter that may come up in terms of cost?

Atul Daga

Yes.

So next quarter, which is July, September quarter will have a full impact of the war because we'll have all cost coming to a head from 1st of July plus monsoons.

And monsoons are doing all right, if not too bad.

But I know there are some pockets in the country, which are staring at a very dry spell.

But generally, if monsoons are doing all right, maintenance, we would have a large number of kilns undergoing maintenance.

So, maintenance costs will be there.

Fuel is expensive.

We have stocked up, but the cost of fuel will go up.

I would expect the cost to go up by INR130 to INR140 per ton, all put together.

I can't associate one line item with war and other with something else.

But all put together, we should be going up around INR130, INR140 per ton.

Rahul Gupta

Got it.

And what would be one-off cost inflation in the first quarter?

Atul Daga

In the first quarter was fuel cost and packing bags.

Packing bags was the biggest cost impact than fuel.

Rahul Gupta

Any way that you can quantify what that number would be overall cost?

Atul Daga

Fuel cost, it's given in the presentation, from INR874, it went to INR915 per ton, which is a 5% increase.

Yes, INR25 to INR40 per ton was increase in fuel cost alone.

In quarter basis, but we had seen packing bags from an average cost of INR9 plus/minus going up to INR14, INR15 also before settling down somewhere around INR10 a bag.

So, from a INR9 per bag, it went up to INR12 per bag average for the quarter.

These 2 elements, so INR40 was on fuel and INR20, give or take, on bag.

Rahul Gupta

Got it.

Thank you so much and wish you all the best.

Moderator · Conference Operator

Thank you.

The next question is from Indrajit Agarwal from CLSA.

Please go ahead.

Indrajit Agarwal

Hi, thank you for the chance and congratulations on a good set of numbers.

I have 2 questions.

My first question has 2 parts on demand.

Part of the demand has been helped by a drier weather, particularly in the month of June.

Do you think that impacts demand negatively in the second half, particularly in rural areas?

Atul Daga

Yes.

There are still some dry states.

I was speaking to somebody in the morning.

Rajasthan is going through a very dry patch right now.

So that demand impact will be felt next year because they will have water crisis.

The usual slowdown in monsoon quarters, June was, of course, as you said, dry, but July onwards, we have started seeing wet spells across various parts of the country.

UltraTech Cement Limited July 20, 2026 Good thing is that barring 1 or 2 states, every state has experienced rains.

So, it's not that bad.

But it's still the first month of monsoons, we'll have to wait for August and September to tell us how the weather progresses and what is the impact of the dry/wet spell.

Indrajit Agarwal

And second part of the same question, do you see a step change in demand in East, which has been a laggard so far at least in the past?

Atul Daga

Yes.

Yes, very much.

Multiple states which have gone through elections, the land reforms, which is about to come in place in one of the Eastern states.

The structural change, which will be visible, it's not next quarter story, but it's next 2, 3, 4 years story.

East will witness good demand upcycle.

Indrajit Agarwal

My next question is on the fuel mix.

Given that the correction we have seen in pet coke, let's say, in the past month or so, is it still more favourable to buy coal or do we see that mix...

Atul Daga

Pet coke has become more expensive in energy terms than coal.

So yes, coal becomes more attractive to buy, domestic coal becomes more attractive to buy.

Indrajit Agarwal

Sure.

And lastly, the INR130 to INR140 per ton impact that you mentioned, does it also include the impact of operating deleverage given that 2Q is generally a low volume quarter?

Atul Daga

Yes.

All in, I'm looking at, maintenance cost, operating deleverage, if you want to call it, fuel costs.

Packing bag luckily is not moving haywire.

So, it's a usual July, September quarter impact, whether.

We cannot really say it's happening because of the war, let's be honest with ourselves.

It's a usual July, September quarter.

Indrajit Agarwal

Yes, because the quantum looks much lower than the seasonality.

So, congratulations on that as well.

Atul Daga

That's UltraTech for you, my friend.

Indrajit Agarwal

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from Prateek Kumar from Jefferies.

Please go ahead.

Prateek Kumar

Congrats for great results.

My first question is on if can you revisit your cost saving numbers?

I think the last quarter, there were like for the next 2 years, we had like talking about upwards of INR200.

Like how do you see...

Atul Daga

Prateek, what I had said also instead of looking at it quarter-by-quarter, we should look at it on an annual basis because this quarter, I show you something, and I'll have to show a negative performance in July, September quarter.

Lead distance has come down further from 367 to 360 now so,7 kilometres of lead has come down, if you annualize it at, at least INR2.5 to INR3 per ton per kilometre, that's a saving which is visible upfront.

The clinker conversion has improved to 1.5.

That's a small improvement.

Other than that, power consumption has gone down, which is visible in my presentation.

Power rate has gone down because of our power mix changes, which is visible in our presentation.

But at the end of the year, we will give a comprehensive number.

That will make more sense to do a comparison.

UltraTech Cement Limited July 20, 2026

Prateek Kumar

Sure.

And on war impact on cost curve, so it was like expected that the impact of cost would be -- I mean you also, I think, presented in a slide like last time, upwards of INR250 to maybe a higher number.

So, including this INR130, INR140 cost impact next quarter, all of it is in the cost now by the end of 2Q for the company?

Atul Daga

So, Prateek, what I talked about, INR250 would be expecting for the industry generally was not a very thorough number.

But as I mentioned now, from where we are, now I'm speaking about UltraTech, INR130 to INR140 further increase in cost, and we would trigger measures to absorb these costs.

So, we'll see what we can achieve.

But cost increases could be anywhere between INR130 to INR140 per ton in the July, September quarter, and I cannot alienate what is because of war and what is the normal maintenance quarter.

Prateek Kumar

Last question on your capacity utilization of 81%.

Can we like split it region-wise?

And you said the East region is inflecting, but any specific demand trend on a regional basis?

Atul Daga

One second.

So yes, 13.1% growth that we talk about, East was the slowest in April, June quarter, partly because of the elections, labor availability.

South and North were a shade below 15%.

West and Central were above 15%.

Prateek Kumar

Sure.

Thank you.

I will get back to the queue.

Atul Daga

Thanks, Prateek.

Moderator · Conference Operator

Thank you.

The next question is from Siddharth Mehrotra from Kotak Securities.

Please go ahead.

Siddharth Mehrotra

Thank you for the opportunity and congratulations on a good set of numbers, sir.

Given the backdrop in which we are now almost 30% of the overall market, and we seem to put no foot wrong.

Sir, just wanted to know what do you think are, say, the top 3 challenges for our company, from a 5-year horizon?

Atul Daga

The challenge, I'm trying to think.

I will think and come back in the queue.

So, I really don't know.

I'm not being hoity-toity over here, but the biggest challenge for the industry and for us would be if demand slows down, which I don't foresee happening.

So, from that point of view, I think we are in a very good situation where we have 200 million tons of capacity, utilized at 81% this quarter, 200 million going to 240 million and there will be growth further very soon, we'll come back with our growth plans.

As long as I think fundamentally, we believe as long as demand is there, everything else is immaterial.

And as I mentioned, the urbanization factor, which is 35% in India, might reach about 39% by 2030, which is still way below as compared to most of the other markets.

So, if something were to happen structurally to demand growth and suddenly people are not buying houses and industrialization is not happening, data centers start vanishing from India and be done in Pakistan or anywhere else, that could be an issue, which I don't think is going to happen.

So, demand remains strong.

The challenge will be that we don't have capacity.

We have to expand.

UltraTech Cement Limited July 20, 2026

Siddharth Mehrotra

Got it, sir.

This is well understood, sir.

Sir, just wanted to check, there's a slide we have presented on raw material cost index.

And I noticed that our limestone raising costs have gone up significantly, almost like 13% to 14% on a Q-o-Q basis, and they are at the highest level in the past 2 years.

So, can you just tell us what has happened there?

Why is this cost suddenly spiking?

Atul Daga

You know, I don't know what kind of vehicle you drive, petrol or diesel.

And you didn't pay any higher price for fuel, but industrial diesel went up almost 50% from INR100 per liter to INR157.

From INR78, INR80, my colleagues correct me from INR78, INR80 pre-war, it went up to INR150s during the war period.

They had reduced it, but now I believe, again, prices are going up.

So again, it's an upward movement.

So, this diesel is a very big component and limestone raising cost, which impacted our raw material costs.

Siddharth Mehrotra

Understood, sir.

This is essentially industrial diesel, which has been used?

Atul Daga

Yes.

Industrial diesel.

Siddharth Mehrotra

Just sir, one last question.

Sir, any sort of guidance or projections or any aspirations you have, say, for example, in the Wires and Cables segment, which is about to come online next quarter?

Atul Daga

Sky is the limit.

So, we don't give any guidance.

So, we would like to be profitable, grounded and grow with the market.

Siddharth Mehrotra

Got it, sir.

Thank you.

Atul Daga

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from Raghav Maheshwari from Equirus Securities.

Please go ahead.

Raghav Maheshwari

Congratulations, sir, on the excellent results.

Sir, just one thing I want to understand.

As you mentioned in your opening remarks about brand power and premiumization.

My question is regarding that how do you see Indian cement industry as a brand product play versus right now going into the market as a commodity product play?

And what is your view on a brand power role in the trade market today and its importance evolving over the medium to long term?

Atul Daga

Thanks, Raghav.

So, I think India is a retail market.

From any wild stretch of imagination, if you look at the urbanization level in the country, the demand potential that exists, the RMC mix in the country, RMC as a percentage of overall business might not be more than 20%.

That clearly says that where is the remaining cement getting sold, it's in the retail market.

So as long as cement or India is the retail market for cement, it will remain a branded cement play, is my view, my personal opinion.

And there is enough data available for you.

As I told you, RMC, for us, it's about 3.5%.

3.5% of our sale is RMC.

Our institutional customers would be 35% or thereabouts, give or take.

65% to 66% would be retail.

If I marry this data point to India as a whole, as the demography of India, the spending habits of India, if you look at the number of cities, which are more than 1 million population, today, we have 63 cities which will reach to 71 cities by 2030.

The point is there's a huge amount of urbanization required.

If you look at cities with vertical housing, there are not too many.

You can count them on your fingertips and now UltraTech Cement Limited July 20, 2026 Indian housing is verticalizing wherein corporate real estate is happening, but large part of the country remains to be individual homebuilder.

As long as India is an individual homebuilder market, it's a retail market, and that's where the retail markets bring the requirement of brand.

Very unique market in India, not just cement, steel is also branded.

There are several other commodities which if you step outside India and look at those are commodities, but India, for example, TMT, my colleague is telling me, TMT rebar, Tatas have steel, which is a branded product, JSW has a retail brand on steel.

Paints in India is a big brand, because it's a retail market.

Why are they brands?

Because it's a retail market, and that's where cement also is in the same story.

So, India is a retail market, and that's where brand play comes into picture.

And I believe given the timelines that we look at, at least I don't know, very long number of years before India is fully urbanized.

So, till then, you will have a brand play.

I hope I have answered your question.

Raghav Maheshwari

Yes.

Sir, is it a fair understanding that till the market level, we will not achieve almost 70%, 80% sales of cement via RMC or for the key customers, still the brand power will remain in the key focus, right?

Atul Daga

Yes.

And if I were to correlate this with UltraTech, out of our total sale of 40 million tons or last year, total sales of 145 million tons, 3.5% was RMC sales.

This is in spite of the fact that we have the largest number of RMC plants in the country.

We have today 477 plants.

So, RMC will be a surrogate.

You go to any other market, you step to the neighbouring UAE, where RMC is the biggest customer for cement.

And there, we don't have a brand play.

As long as India is still very in its nascent stages in RMC, India will remain a branded cement player.

Raghav Maheshwari

Got it sir.

Thank you all the best.

Atul Daga

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from Raashi from Citigroup.

Please go ahead.

Raashi

Thank you.

My first question is on pricing.

You mentioned that the June exit prices were higher in the South and the East.

So, are you expecting like the overall monsoon quarter to average slightly higher than the prior quarter or flattish?

Atul Daga

Expecting higher is definitely everybody's desire.

We will attempt it.

We'll see where we land.

Raashi

Okay.

Understood.

Then industry volume growth would be how much during this quarter?

Atul Daga

Too early, but anywhere between 7% to 8%.

We want to see some more results.

But our marketing intel says it should be around 7% to 8%.

Raashi

And on the capital’s expenditure, the bulk of your expansion is getting concluded in FY28. So, beyond that, is there anything on the drawing board yet organic?

Or is it going to be inorganic if at all opportunities come up?

UltraTech Cement Limited July 20, 2026

Atul Daga

So inorganic, obviously, if there are opportunities, we will examine them.

And our team has already got on to the drawing board to take us beyond 240.

Once the plans are ready, we will come back with absolute micro details.

Raashi

Got it.

And just one last question for me.

The blended coal cost was how much during the quarter?

And how much is it now?

Atul Daga

1.9 Yes, that's you're asking was 1.9.

Raashi

On a coal cost basis and on a dollar basis, do you have a number?

Atul Daga

USD134 per ton.

Raashi

And where are we at now?

Atul Daga

Would be around INR2 per Kcal.

And Raashi, INR2, I think we won't go beyond that because we are fully inventory loaded.

Raashi

Got it.

Okay.

Thank you.

Atul Daga

Thanks Raashi.

Moderator · Conference Operator

Thank you.

The next question is from Pulkit Patni from Goldman Sachs.

Please go ahead.

Pulkit Patni

Thank you for taking my question.

Sir, my first question is more a clarification to the question Indrajit had asked.

Typically, between first and second quarter, just because of negative operating leverage, you have about a INR200 increase in cost per ton.

Plus, obviously, there's increase in power and fuel cost.

What you mentioned was the overall increase in cost would be more like INR120, INR130 per ton.

I just want to make sure that I get this.

Atul Daga

Yes.

There will be INR130 to INR140 cost pressure.

And what Indrajit talked about negative operating leverage, there is a positive in that negative operating leverage also because our size has been continuously going up.

So whatever volumes we sell will be significantly higher than earlier periods, which will give us still some advantage.

Pulkit Patni

But sir, still, I mean, so it will be 200 decline plus the increase in fuel cost?

So that should be in the range of INR320, INR330 overall, right?

Is that not right?

Atul Daga

No. I am looking at not 200 decline.

I'm looking at 140 decline in terms of my 130 to 140 decline because of costs.

Pulkit Patni

Okay.

Maybe I'll take it offline just to understand things better.

My second question is on river linking.

Atul Daga

Pulkit, one second.

What I was talking about is from the previous quarter.

Pulkit Patni

Sequentially?

UltraTech Cement Limited July 20, 2026

Atul Daga

Sequentially, yes.

I was not commenting on Y-o-Y because I think nobody looks at Y-o-Y these days.

Pulkit Patni

No. Absolutely.

My question was also only sequentially.

Atul Daga

All right.

Pulkit Patni

Okay.

But I'll need to get a better understanding.

Sir, my second question is on river linking.

You mentioned Ken-Betwa, which is the first project which is underway.

Like just to understand, is river linking a very cement-intensive project, like because there could be more coming in India in the next few years.

So just wanted to get a broad understanding like how cement intensive similar to like a hydropower plant would it be?

Atul Daga

Well, I don't have a comparison with hydropower plants, but river banks have to be done.

Silting has to be done.

And I don't know whether dams are required or not required, but river banks have to be built, which is concrete.

And with the river banks being built, you have concrete structures on the either sides as well.

So, we expect it to be very cement happy situation.

But Vadhavan port, I forgot to mention, I should have mentioned now.

I think multiple packages have already been awarded, which means that, that work will also commence for the country.

So, a lot of positivity.

Pulkit Patni

Absolutely.

No, thank you so much.

Atul Daga

Thanks Pulkit.

Moderator · Conference Operator

Thank you.

The next question is from Ashish Jain from Macquarie India.

Please go ahead.

Ashish Jain

Hello.

Hi sir, good afternoon.

Sir, my first question is on dividend.

How should we think about dividend?

Because last year, what we paid had a one-off.

Should we think it is more per share basis or as a percentage of profits, how should we think about it?

Atul Daga

Percentage of profits, that's the way our Board is looking at it.

Ashish Jain

But ex of one-off, is the more sustainable one to think?

Atul Daga

I'm sorry?

Ashish Jain

Ex of the one-off that we paid

Atul Daga

You call it special, be happy with it, but I'm expecting good dividends.

Ashish Jain

Right.

Sir, secondly, in terms of pricing, let's say, in the short term, which is Q2, I understand pricing, we are hoping it to be resilient.

But is there something for us to believe is a more structural change and shift on profitability focus, at least for us and hope that even if, let's say, input cost goes down in the later part, pricing and margins should structurally remain higher?

Or there could be a focus shift to market share much faster with all the capacities that we are adding?

UltraTech Cement Limited July 20, 2026

Atul Daga

I don't know you went too long; I have lost track of what you were saying.

Can you repeat?

Ashish Jain

Sir, so what I'm saying is near term, the cost inflation will support pricing is the hope or expectation at least that we have.

But in the later part, if input cost goes down, should we think that pricing will be at risk or given that we still focus on.

Atul Daga

I feel, Ashish, prices move with demand.

If demand is strong, all India basis, then prices can go up.

And if cost curve comes down, then obviously not necessary to prices to reduce.

Ashish Jain

Okay.

Fine.

Thanks a lot sir.

Atul Daga

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from Pinakin from HSBC.

Please go ahead.

Pinakin

Thank you sir.

Two questions.

If I look at the grey cement volume growth, in the fourth quarter, it was 9.3% year-on-year, in the first quarter it's 13.1%.

So clearly the market is picking up.

If the industry environment remains as it is, can we expect double-digit demand growth, double- digit sales volume growth for grey cement in FY27 for the company?

Atul Daga

Yes, we are targeting double-digit volume growth this year.

Pinakin

Okay.

And what will you attribute to this acceleration in market share gains quarter-on-quarter?

Atul Daga

Pinakin, we spoke about it.

I think the fundamentals of our brand are very strong.

Our distribution network, our reach to the markets, our people, our quality, the brand which people trust, I mentioned about the whatever category you might want to call the old India Cement and Kesoram brands, they were certainly not A category brands.

From their own B or C category markets, we have not lost a market share.

What does it mean?

That we have converted that market for a customer who was happy buying B and C category at a at a particular price point, now has got convinced to buy UltraTech at a higher price.

That's where our strength lies, and that is where the whole growth trajectory is, that is where we are able to do better than the industry.

Pinakin

Sure, thanks.

Just on the variable cost, especially packaging and energy.

Now we understand Q2 would have a delayed flow-through of the prices that were prevailing in April and May.

But if we take the spot prices of pet coke, of packaging, should we expect second half variable cost to be lower on a per ton basis versus the first half?

Atul Daga

Yes, logically yes.

Now the war has to go out of the way, so that oil subsides and coal and pet coke, because ocean freight, my colleague was telling me just today, insurance premiums have gone up to 4%-5% for the ocean route as compared to less than 1%.

So that is the kind of differences which the war is creating.

Once the war is out of the way, things should stabilize and H2 hopefully, God willing, should be a better place in terms of cost.

Pinakin

Sure, thank you very much, sir.

Atul Daga

Thank you.

UltraTech Cement Limited July 20, 2026

Moderator · Conference Operator

Thank you.

The next question is from Ritesh Shah from Investec.

Please go ahead.

Ritesh Shah

Hi, sir, thanks for the opportunity.

Congratulations for good set of numbers.

Three quick questions.

Sir, first on wires and cable, what is the sort of working capital days that we are looking at?

Atul Daga

So initially we will have a higher working capital because we have to pile up, ramp up inventories.

But going forward and structurally we are working on financing our suppliers on cables and wires which should release working capital.

So, excuse me for having a higher working capital for the next six months after which we start stabilizing and coming down to 30 days plus-minus of working capital.

I don't have a number readily, but that's the intent.

Ritesh Shah

But sir, specifically on the inventory days, I think, again we will be procuring from Hindalco, given the lead distance it's quite low over here.

Atul Daga

Four hours, four hours.

Ritesh Shah

Exactly, so there should be tangible benefit on the denominator on working capital over here, right?

Atul Daga

Yes, please.

That's what I'm saying.

So, I don't have a handle on exact number which we'll land with, but April-June '27 should be a period to see a stable number.

Right now, it'll be a ramp-up of working capital.

Ritesh Shah

Sure.

Sir, my second question is we've already commissioned 55% of what we are supposed to commission for the full year.

We are adding almost 45 million tons FY27- FY28. Would you like to put a certain number, say for our capacity addition FY27- FY28?

This is like what percentage of the market?

Probably you can qualify it from a capacity share or a market share, either of it will help?

Atul Daga

So, this I think we'll have to work out and give it to you, but March '28 we should exit with 235 million tons in India.

We will end 212 million tons March '27, so that's a balance coming up to a 22-25 million tons the next year.

Ritesh Shah

As per your estimates, how much is the industry capacity addition in '27-'28?

Atul Daga

We'll have to again recalibrate it, Ritesh, because whatever I hear some industry players are wanting to revisit their expansion plans.

So, when we have a firm number there, then only I think you would be in a better position to tell me what is the industry growth expected.

You know my number, we will reach at 235 million tons to end of March '28 from 200. something today.

So, we have 37 million tons coming in '27 and '28.

Ritesh Shah

Perfect.

Sir, just last question, you covered most of the variables, we didn't hear magical INR1,400 per ton number from you.

Would you like to qualify timelines over here?

Atul Daga

I have already called it out n number of times.

There's no point in repeating it.

January-March '28 quarter without any war.

UltraTech Cement Limited July 20, 2026

Ritesh Shah

Without any war.

Okay, cool.

Thank you, sir.

Moderator · Conference Operator

Thank you very much.

We'll take that as the last question.

On behalf of UltraTech Cement Limited, that concludes this conference.

Thank you for joining us, ladies and gentlemen.

You may now disconnect your lines.

Disclaimer - The transcript has been edited for language and grammar; it however may not be a verbatim representation of the call.