India Cements Ltd., (NSE:INDIACEM), a subsidiary of UltraTech Cement Limited, is a major player in the Indian building materials sector with a legacy dating back to 1946. Headquartered in Chennai, the company is primarily dedicated to the manufacturing and sale of cement and related products.
ICL operates a robust network of integrated and grinding units across Tamil Nadu, Telangana, Andhra Pradesh, and Rajasthan, with a current total capacity of 14.75 Mtpa, which it aims to expand to 17.55 Mtpa by March 2027.
Primary News and Strategic Developments
In the third quarter of FY26, the company continued its strategic realignment through several key moves.
- Divestments: ICL approved the sale of its entire stake in its subsidiary, Industrial Chemicals & Monomers Ltd (ICML), for ₹97.68 Crores. Additionally, in December 2025, it sold its entire equity investment in the Indonesian step-down subsidiary, PT Adcoal Energindo.
- Internal Consolidation: The Board is progressing with the amalgamation of four wholly owned Indian subsidiaries, ICL Securities Ltd, ICL Financial Services Ltd, ICL International Ltd, and India Cements Infrastructures Ltd. into the parent company.
- Regulatory Compliance: The company recognized an exceptional expense of ₹7.72 Crores due to the statutory impact of the new National Labour Codes, which introduced revised definitions for employee benefits and wages.
Q3 FY26 Financial Results
For the quarter ended December 31, 2025, India Cements reported a recovery in operational metrics despite pricing pressures.
- Revenue and Income: Consolidated revenue from operations reached ₹1,114.26 Crores, contributing to a total income of ₹1,137.96 Crores.
- Profitability: The company reported a consolidated loss of ₹3 Crores for the quarter. However, Profit After Tax (PAT) before exceptional items stood at ₹6 Crores, a significant improvement compared to the same quarter in the previous year.
- Margins and Realizations: The consolidated operating margin was 7.09%. Net cement realizations faced a 2.4% quarter-on-quarter decline, ending at ₹4,221 per Mt. The Operating EBITDA/Mt was ₹299, compared to ₹330/Mt in the previous quarter.
- Operational Metrics: Domestic sales volume grew 25% year-on-year to 2.59 MnT. Capacity utilization reached 69%, an 11% increase over the previous year.
Operational Rebound
The company achieved a significant turnaround in its EBITDA, which rose to ₹103 Crores from a loss of ₹178 Crores in the same quarter of the previous year.
- Volume and Utilization Gains: India Cements saw a 25% year-on-year increase in domestic sales volume, reaching 2.59 MnT, while capacity utilization improved by 11% to reach 69%.
- Profitability Highlights: While the consolidated net loss was ₹3 Crores, the Profit After Tax (PAT) before exceptional items stood at ₹6 Crores, indicating a recovery in underlying business performance.
- Strategic Moves: The period was marked by the divestment of subsidiaries like Industrial Chemicals & Monomers Ltd (ICML) and PT Adcoal Energindo, alongside the ongoing amalgamation of four Indian subsidiaries into the parent company.
- Cost Efficiency: A major driver of the recovery was the reduction in logistics costs, which fell 28% quarter-on-quarter to ₹588/Mt.
Key Cost Indicators
Efforts to optimize operations led to specific cost shifts during the quarter.
- Logistics Cost: Reduced significantly to ₹588/Mt, down 28% from the previous quarter.
- Power and Fuel: Power costs stood at ₹626/Mt, while fuel costs were ₹952/Mt.
- Raw Materials: Costs remained flat quarter-on-quarter at ₹945/Mt.
Business Outlook and Sustainability
India Cements has outlined a clear path for growth and modernization.
- Capex Investment: The company plans a ₹2,000 Crore capital expenditure over the next two years. This investment focuses on upgrading preheaters, cooler optimization, and enhancing energy efficiency to reduce heat and power consumption.
- Green Energy Shift: A major sustainability goal is to scale up Green Power (Renewable Energy + Waste Heat Recovery Systems) from the current 5% to 80% by FY29.
ESG and CSR: ICL continues to invest in community initiatives, reaching over 2,400 students through education programs and supporting sustainable farming for local farmers. Its commitment to safety was recently recognized, with the Dalavoi Cement Works winning first prize in the Tamil Nadu Mines Safety Week.