India Cements, once the CSK-sponsoring pride of South India, is now basically a takeover buffet for UltraTech. Q1 FY26 sales came at ₹1,025 Cr, EBITDA ek theek-thaak ₹92 Cr, but bottom line still showed a PAT loss of ~₹9 Cr. Meanwhile, UltraTech already controls 55.5% and is running an open offer like a student buying extra exam sheets just to flex.
2. Introduction
India Cements is like that once-famous cricketer who played in the 90s, still remembered for a few big innings (read: brand presence and IPL sponsorship), but now mostly lives off nostalgia.
Founded in 1946, it has 15.5 MTPA capacity spread across South India. Brands like Sankar Super Power and Raasi Gold sound solid, but the financials? Not so much. Sales volumes are slipping, realizations per tonne are falling, and margins have been thinner than college hostel sambar.
Q1 FY25 sales were 19.6 lakh tonnes vs FY23’s 98.9 lakh tonnes. Realization per tonne went from ₹5,670 (FY23) to ₹5,237 (Q1 FY25). Basically, same cement, but customers are bargaining harder than Saravana Stores.
Now, with UltraTech swallowing majority stake, India Cements may soon be just another entry in Birla’s empire. But will the turnaround capex plan (₹750 Cr) save its identity—or is this simply “RIP India Cements, hello UltraTech South Zone Pvt Ltd”?
3. Business Model – WTF Do They Even Do?
Business model is as old-school as it gets:
Dig limestone → grind → pack cement bags → sell in South India.
Revenue = cement bags x price per tonne.
Costs = power, coal, logistics, debt interest, and occasional ED raids.
Over the years they tried adding shipping, captive power, and coal mining. Synergies? Sure. Profitable? Hmm. With UltraTech in the driver’s seat, the model may shift to “just another plant in Birla’s spreadsheet.”
Think of India Cements like a Thala Ajith movie: lots of action (plants, brands, expansion plans), but critics’ reviews (ROE -8.8%, ROCE -5.5%) say “skip matinee show.”
4. Financials Overview
Metric
Latest Qtr (Q1 FY26)
YoY (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
1,025 Cr
1,027 Cr
1,197 Cr
-0.2%
-14.4%
EBITDA
92 Cr
-25 Cr
-3 Cr
Turned +
NA
PAT
-9 Cr
58 Cr
18 Cr
-116%
NA
EPS (₹)
-0.29
1.89
0.47
NA
NA
Commentary: At least EBITDA is positive, but PAT is still red. Annualised EPS = negative, so P/E is “not meaningful.” UltraTech probably looked at this and said, “arre, khareed lo, market consolidation ke liye sahi hai.”
DCF: If turnaround works (₹150–175/ton saving from capex), margins could improve. But with negative PAT, DCF looks like an astrologer reading your palm.
Fair Value Range (Educational Purpose Only): ₹300 – ₹420. Current CMP ₹395 is already at the high side. (Disclaimer: This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
UltraTech Acquisition: 55.5% stake now belongs to Birlas. Open offer for 26% more. India Cements basically turned into a merger dinner buffet.
Capex Plan: ₹750 Cr till FY26. Includes WHR plant, crusher, and mill upgrades. Aim: save ₹150–175 per tonne. Translation: try to stop bleeding cash.
Asset Monetisation: Parli grinding unit sold for ₹315 Cr. Now talking about selling wasteland (corporate euphemism for “bhai kuch bhi bech do bas cash lao”).
