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    HeidelbergCement India Q4 FY26 earnings call

    HEIDELBERG
    Construction Materials·29 May 2026
    Management Summary

    HeidelbergCement India reported strong financial performance for FY26 with significant YoY growth in EBITDA and PAT, driven by an 8.8% increase in sales volume. The company achieved debt-free status and maintained a healthy cash balance. While facing pricing pressure in Q4 and anticipating near-term cost inflation, management expressed confidence in passing on costs and highlighted strategic moves in raw material security and sustainable operations.

    Highlights

    9

    • EBITDA for FY26 was 19.8% higher compared to last year.

    • PAT for FY26 was 25.5% higher compared to last year.

    • Sales volume for FY26 increased by 8.8% over the last year.

    • EBITDA per ton for FY26 increased from INR530 to INR584, representing a 10.18% increase.

    • The company is now completely debt-free after repaying an interest-free loan of INR687 million.

    • Cash and bank balance stood at INR4,037 million.

    • Declared preferred bidder for two mining leases in Madhya Pradesh, securing 62 million tons and 105 million tons of cement-grade limestone.

    • Premium products contributed 52% of total trade volumes, up 9% YoY.

    • Share of non-grid power exceeded 50% during FY26, and green power in the overall portfolio was over 40%.

    Concerns

    4

    • Q4 FY26 saw pricing pressure, resulting in a loss of about INR105 at the gross price level.

    • Anticipated cost impact of INR100 to INR150 per ton in the near term due to fuel mix and other factors.

    • Geopolitical developments, elevated headline inflation, and currency depreciation remain concerns.

    • El Nino effect and heat wave pose a significant risk to agricultural output and rural demand.

    Key financials

    Single quarter

    06 metrics
    1. 01EBITDA Growth19.8%+19.8%YoY
    2. 02PAT Growth25.5%+25.5%YoY
    3. 03Sales Volume Growth8.8%+8.8%YoY
    4. 04EBITDA per Ton584 Rs/ton+10.2%YoY
    5. 05Cash & Bank Balance4,037 Mn

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹100 crores

    Debt

    Gross ₹0 crores · Net ₹0 crores · 0.0x EBITDA

    Dividend

    ₹7/share (final)

    Payout ratio 70.0%

    M&A

    Mining Leases in Madhya Pradesh

    acquisition · announced · Consideration ₹NaN (undisclosed)

    Liquidity

    Cash ₹4,037 million

    Company operates on negative net operating working capital.

    Guidance & targets

    7
    CategoryTargetPriority
    Volume
    Central India Industry Volume Growth
    7-7.5%
    		High
    Volume
    Company Volume Growth
    In line with industry growth
    		Medium
    Cost
    Clinker Content Reduction
    50-100 basis points
    		Medium
    Cost
    Cost Impact (Q1 FY27)
    INR100-150 per ton
    		High
    Sustainability
    Green Power Mix
    Beyond 40%
    		Medium
    Capacity
    Khandwa Blending Unit Additional Cement
    35,000 tons
    		High
    Capacity
    New Mining Leases Project Completion
    Within 2 years
    		Medium

    What to watch in Q1 FY27

    5

    Ability to pass on cost increases

    next quarter
    CurrentAnticipated INR100-150/ton cost impact in Q1 FY27
    TargetSuccessful pass-through of cost increases to customers

    Why it matters

    Crucial for maintaining profitability amidst inflationary pressures.

    I am confident, even though with a little bit of lag, the increase in input prices, we shall definitely be able to pass on to the customers.

    Risks & concerns

    4
    RiskSeverity

    Geopolitical developments impacting commodity prices

    West Asia conflict creating uncertainty in global markets and impacting petcoke and fuel prices. — Management acknowledged

    medium

    Elevated headline inflation and currency depreciation

    Remains a concern, especially for a company with significant expenditure on imports. — Management acknowledged

    medium

    El Nino effect and heat wave impacting rural demand

    Risk to agricultural output, rural demand, and food inflation, though expected to be mitigated by monsoon. — Management acknowledged

    medium

    Competitive pricing pressure in Central India

    New capacities from competitors like JK Cement and UltraTech are causing temporary pricing pressure. — Management acknowledged

    medium

    Q&A highlights

    7

    “Rajesh, if you see our total cement grinding capacity, it is around 6 million tons. And at this moment, we are you are right that we are running around 90%, 95% capacity. But at the same time, like Mr. Mukherjee said that we are optimizing our product portfolio. We are also reducing our clinker content so that we can reduce CO2 emission as well as it gives us the further headroom to grind more cement.”

    Clarifies how the company plans to grow volumes despite high clinker utilization by optimizing product mix and reducing clinker content.

    asked by Rajesh Ravi

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    HeidelbergCement India delivered robust financial results for the fiscal year ended March 31, 2026. The company reported a 19.8% increase in EBITDA and a 25.5% rise in PAT compared to the previous year. This growth was supported by an 8.8% increase in sales volume. EBITDA per ton for the full year improved significantly, rising from INR530 to INR584.

    02

    Operational Efficiency and Sustainability Initiatives

    The company continues to prioritize operational efficiency and sustainability. 97% of all cement produced is blended cement, aligning with low-carbon commitments. Alternative fuel usage increased by 3% year-on-year to 11% at the company level. Furthermore, the share of non-grid power exceeded 50% during the fiscal year, with green power contributing over 40% to the overall power portfolio.

    03

    Strategic Capacity Expansion and Raw Material Security

    HeidelbergCement India has been declared the preferred bidder for two mining leases in Madhya Pradesh, securing 62 million tons and 105 million tons of cement-grade limestone. This strategic move is crucial for future expansions, with management expecting project completion within two years. The company's total cement grinding capacity stands at 6 million tons, with clinker capacity at 3.1 million tons, following the completion of debottlenecking exercises.

    04

    Capital Allocation and Debt-Free Status

    The company achieved a significant milestone by becoming completely debt-free after repaying an interest-free loan of INR687 million. It maintains a healthy cash and bank balance of INR4,037 million. For FY27, the company plans a total capex of approximately INR100 crores, including INR45-50 crores for sustainable capex and a portion of the INR130 crore investment in a new blending unit at Khandwa, which is expected to add 35,000 tons of extra cement.

    05

    Market Outlook and Pricing Dynamics

    Management anticipates a 7-7.5% industry growth in Central India for FY27, driven by upcoming elections in Uttar Pradesh. While acknowledging temporary pricing pressure in Q4 and an expected cost impact of INR100-150 per ton in Q1 FY27 due to fuel and packaging, the company is confident in its ability to pass on these costs to customers, citing historical trends and industry-wide cost pressures.

    This is an AI-generated summary of a publicly available earnings call transcript.