UltraTech is expanding its cement-making capacity while using more of its installed base. Results released on 19 October show domestic grey-cement sales of 35.94 million tonnes in July–September 2026, up 13.8% from 31.58 million tonnes in the same quarter last year.
The company reported capacity utilisation of 71%, against 66% a year earlier: an increase of five percentage points. It also commissioned 4.6 million tonnes of annual capacity during the quarter. Together, the figures put the demand for cement alongside the expansion of its supply base.
The Breakdown
The additions included 3.6 million tonnes a year at Petnikota in Andhra Pradesh and another 1 million through work at existing plants in Visakhapatnam, Patratu and Nathdwara. UltraTech’s consolidated domestic grey-cement capacity reached 204.7 million tonnes a year as of 30 September.
These measures answer different questions. Sales volume counts tonnes sold during three months. Capacity describes annual production capability at a particular date. Utilisation is a separate company-reported operating measure; dividing quarterly sales by the annual capacity recorded at the quarter’s end would not reproduce it reliably.
The higher utilisation rate is evidence of greater reported use of the production base. It does not show how busy each plant was, or how quickly newly commissioned equipment reached normal operations. Nor does the unused percentage amount to cement immediately available for delivery in every market.
Why This Matters
UltraTech’s own regional assessment shows why national totals need a local reading. Its investor presentation describes infrastructure demand supported by projects in the north and west, while infrastructure demand in the east was subdued and in the south muted. These are the company’s observations, rather than an independent regional construction survey.
For a contractor or homebuilder, the useful questions remain local: which supplier can serve the site, at what delivered price and on what timetable? More installed capacity expands production capability, but the national figure alone cannot answer those purchasing questions.
Official figures provide broader context. The government’s provisional core-industries figures put Indian cement production growth at 12.5% year on year in August. That measures nationwide output in one month, whereas UltraTech’s figure measures company sales over a quarter. Comparing the two growth rates cannot establish a change in market share.
The next capacity test
UltraTech’s presentation projects domestic grey-cement capacity of 237.5 million tonnes a year by the end of FY28, which runs to March 2028. That is a company expansion plan, not a forecast of cement sales or a promise that all the capacity will be fully used.
The Crunch
The September quarter combines more cement sold, additional capacity commissioned and higher reported utilisation. The next useful comparison is whether sales and capacity use keep pace as further plants come on stream. Announced capacity alone cannot settle that question.