India Cements’ Turnaround Plan: Simple Steps Toward Rs 1,000 per Tonne by FY30

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India Cements, which is now a subsidiary of UltraTech Cement, has announced an ambitious plan to increase its EBITDA per tonne to more than Rs 1,000 by FY30, a stunning reversal from Rs 40 per tonne in the March 2025 quarter. This ambitious goal follows UltraTech's takeover and a renewed emphasis on operational efficiency and cost management.

Key Highlights:

Profitability Aspiration: India Cements desires to breach an EBITDA per tonne of Rs 500 in FY26, Rs 800 in FY27, and reach beyond the four-digit club by FY30, says CFO Atul Daga. The growth will be driven by increased volumes, better margins, and tight cost control, including reduced logistics and overhead costs.
UltraTech's Investment: UltraTech Cement will invest Rs 1,500 crore in India Cements within the next two financial years to enable capacity growth and modernization initiatives.
Operational Turnaround: The company recorded operating EBITDA breakeven in March 2025, with sharply declining interest expenses after the takeover. Net loss in FY25 dramatically narrowed, and Q4 was back in the profit at Rs 14.68 crore despite a 3.1% decline in revenue.
Sector Context: Overall, the cement sector is seeing a recovery, with industry-wide EBITDA per tonne likely to increase and capacity additions in the works. But analysts warn against possible supply overhang and macroeconomic headwinds.
Strategic Focus: India Cements is working on all fronts of its P&L to improve, taking advantage of UltraTech's scale, technical prowess, and pan-India reach to achieve sustainable growth.

This ambitious EBITDA goal heralds a new dawn for India Cements, as it rides on UltraTech's backing to emerge as a more profitable and competitive force in the Indian cement industry.

Sources: Economic Times, Rediff Money, Business Standard