Aditya Birla promoted UltraTech Cement has completed 100% brand migration across its acquired businesses, India Cements and Kesoram Industries, by the end of March FY26, marking a key milestone in its post-acquisition integration strategy.
UltraTech management told analysts that the transition reflects rapid progress from earlier phases, when in Q2 FY26, 31% of India Cements’ volumes and 55% of Kesoram’s volumes carried the UltraTech brand. By December 2025, this had risen to 58% and 69%, respectively, before achieving full conversion at fiscal year-end.
Operational performance gains momentum
India Cements has demonstrated strong operational improvement, with EBITDA rising to ₹497 per tonne in Q4 FY26, up from ₹333 in Q2 and ₹305 in Q3—indicating steady sequential gains since acquisition. The company also reported a quarterly profit after tax of ₹60 crore, marking a return to profitability after a prolonged period.
However, the reported EBITDA does not fully reflect underlying performance. Under a tolling arrangement, India Cements manufactures and sells under the UltraTech brand without bearing marketing and distribution costs, which are accounted for at the consolidated level. UltraTech applies a per-bag markup that offsets these costs, suggesting that the true operational progress is stronger than headline numbers indicate.
Capex-driven efficiency push underway
UltraTech has initiated a significant investment phase to enhance efficiency and capacity. For India Cements, the company has committed ₹1,592 crore toward operational improvements, along with an additional ₹400 crore for capacity expansion. These initiatives are expected to drive EBITDA to over ₹1,000 per tonne by FY28.
For Kesoram’s cement assets, capital expenditure of ₹400–₹500 crore is underway. These assets are already operating at around ₹1,000 EBITDA per tonne, broadly in line with other southern operations.
From integration drag to earnings contributor
Together, the two acquired businesses now account for approximately 13% of UltraTech’s consolidated capacity. With integration largely complete and cost optimisation measures progressing, both assets are transitioning from being an integration drag to becoming meaningful contributors to group profitability. As capex-led improvements mature, they are expected to drive incremental EBITDA growth at the consolidated level.
Growth outlook backed by structural drivers
Looking ahead, UltraTech expects sustainable volume growth of 7–8% annually. The outlook is underpinned by strong structural drivers, including India’s urbanisation, sustained government infrastructure investments, housing demand under PMAY, and rising rural consumption.
While near-term uncertainties persist due to global geopolitical dynamics, the company remains confident in its positioning to capture long-term demand. With integration challenges largely behind it, FY27 is expected to reflect the benefits of ongoing investments and operational alignment across the acquired assets.