UltraTech Cement Q4 Results Review: Cementing Leadership, Scale, Says Systematix Maintaining 'Buy'

UltraTech continues to make strong progress on cost optimization. Renewable energy capacity increased to 752 MW in FY25 from 612 MW a year ago, with a target of reaching 2.1 GW by FY27, covering ~30% of total energy needs. Investment in waste heat recovery systems (WHRS) is ongoing, with Rs 10 bn being deployed in projects expected to pay back within three years. Management remains committed to delivering Rs. 300+/tonne Ebitda improvement in core operations, of which Rs 86/tn has already been achieved. For newly acquired entities, India Cements is targeted to reach Rs 500/tn Ebitda by FY26, Rs 800/tn by FY27, and Rs. 1,000+/tn by FY28, while Kesoram’s Ebitda/tonne is expected to cross Rs 1,000 by Q4 FY26E.

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Systematix Report

UltraTech Cement Ltd. continues to demonstrate robust operational performance and strategic advancements. The company is progressing steadily with its integration of recently acquired assets, aiming to align their operational efficiency with UltraTech's over the next 24 months.

Net debt/Ebitda remains comfortable at 1.16 times, and management aims to deleverage further to 0.5x over the next few years.

We maintain a positive outlook on UltraTech Cement's long-term growth potential, driven by its strong market leadership, disciplined cost management, and ambitious capacity expansion plans.

We reiterate a Buy rating on the stock, with a target price of Rs 14,038, based on a 19 times EV/Ebitda multiple for FY27E.

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