Detailed Narrative
Infrastructure Pipeline Creates Multi-Year Demand Visibility
CFO delivered an unusually detailed infrastructure demand overview — covering specific projects across North (Punjab roads ₹16,000 cr, Delhi Metro ₹12,000 cr, UP 1,575 km metro network), West (Uttan-Virar Sea Link ₹58,000 cr, multiple highway projects), South (Bangalore metro expansion to 175 km, Karnataka twin tunnel), East (Bihar Ganga Road projects ₹70,000 cr). Industry demand grew 9-10% in Q3, and 6.5-7% for 9 months.
Sold-Out Position Drives Q4 Confidence and Pricing Power
Management declared a sold-out position for Q4, expecting >90% capacity utilization. Cement prices have already improved ₹3-4/bag on realization basis (₹6-8 on bag prices) in January. Non-trade pricing, which had fallen sharply, is hardening alongside trade. Cost pressures from pet coke ($118-119), new labor code, and rupee depreciation provide further rationale for price increases.
Efficiency Program Exceeding Targets — ₹100+ Per Ton in FY26
Lead distance reached 363 km (target was 375 km), delivering savings well ahead of plan. Clinker conversion at 1.49x progressing toward 1.54x target. FY25 delivered ₹86/ton efficiency gains, and FY26 is expected to cross ₹100/ton. Green power at 42%, targeting 60% by FY27/H1 FY28. These are structural, permanent cost improvements that compound over time⏳.
Brand Transition Accelerating — Kesoram 69%, India Cements 58%
Brand conversion is ahead of initial plans with Kesoram at 69% and India Cements at 58% by December 2025. Both targeted for 100% completion by June 2026. However, Kesoram's EBITDA/ton has declined from ₹1,000 to ₹600 over the last 3 quarters — partly due to maintenance and partly due to transition costs. India Cements at ₹400/ton with ₹601 crores capex committed and ₹144 crores spent.
Balance Sheet Rapidly Deleveraging While Maintaining Growth Capex
Net debt/EBITDA improved to 1.08x, targeting 0.8-0.9x by FY26-end. 9-month capex was ₹7,000-7,200 crores with full year expected at ₹9,500-10,000 crores. Phase 4 orders placed and work commenced. India Cements non-core asset sales expected to generate ₹500 crores minimum additionally. Cables & wires project on track — ₹500 crores orders placed, ₹197 crores spent, 30% team onboarded.
Cables & Wires On Track for Oct-Dec 2026 Launch
Civil work has started at Jhagadiya, Gujarat. ₹500 crores worth of orders placed out of ₹1,800 crores budget. 30% of the planned specialist team is already onboard. Production launch remains on schedule for Oct-Dec 2026 quarter. Total spend so far is ₹197 crores.