Shares of India Cements rallied sharply on Monday, jumping 14.74% intraday to ₹467 apiece, following the company's strong Q4FY26 performance. According to reports from ET Now, the stock has significantly outperformed the broader market across multiple timeframes, delivering 31.03% returns over the past month compared to the Nifty 500's 8.32% gain. On a year-to-date basis, the stock is up 6.97% while the Nifty 500 is down 4.77%, and over the past year, India Cements has rallied 62.07% against the index's 4.21% rise.
India Cements reported standalone revenue of ₹1,229 crore, up 2.6% year-on-year and about 10% sequentially, beating expectations. As reported by ET Now, the company swung to a profit of ₹54.8 crore in Q4FY26, compared with a loss of ₹63.8 crore in the same quarter last year, even after factoring in a one-time cost of ₹20.5 crore. The company's EBITDA rose dramatically to ₹156 crore from just ₹2 crore a year ago, while EBITDA margins expanded to 12.7% from 0.2% year-on-year, demonstrating significant operational improvement. According to the latest investor presentation, Profit After Tax before exceptional items stood at ₹70 crores for Q4 FY26, while EBITDA reached ₹179 crores compared to ₹23 crores in Q4 FY25.
The strong performance was supported by 18% year-on-year growth in domestic cement volumes to 3.12 million tonnes, aided by higher demand and better execution. According to ET Now, capacity utilisation improved to around 84-86%, up 11 percentage points year-on-year, while a richer trade mix of about 75% versus 59% last year further boosted realisations. EBITDA per tonne jumped to ₹498, up 62% quarter-on-quarter, led by a steep decline in freight and fuel costs, along with tighter overhead control. Net realisations improved 3.5% sequentially, and operating EBITDA per tonne rose to ₹497 from ₹305 in the previous quarter. The company achieved domestic sales volume of 3.12 MnT in Q4 FY26, growing 18% year-on-year, with net realisations improving by 3.5% quarter-on-quarter to ₹3,791 per metric tonne.
The company outlined key initiatives including conversion of 4/5 stage preheaters to 6 stage preheaters, cooler upgradation, and process optimization. India Cements plans to expand cement capacities by 2.8 Mtpa with a capex plan of ₹2,000 crores over the next two years. On the environmental front, the company plans to scale up green power (RE+WHRS) from 6% to 80% by FY29. Waste Heat Recovery System capacity is projected to increase from 9MW in FY26 to 33MW by FY29, while Renewable Power capacity is expected to grow from 34MW to 283MW in the same period. The company's total assets stood at ₹13,305.28 crores as of March 31, 2026, with equity share capital of ₹309.90 crores and other equity of ₹9,717.09 crores.
Despite weak cement prices both year-on-year and quarter-on-quarter, operating leverage from higher volumes helped cushion the impact. As reported by ET Now, the company's return to profitability and sharp margin expansion were driven by higher volumes, improved capacity utilisation, and aggressive cost rationalisation. The strong operational performance reflects the company's successful implementation of operational efficiency measures and strategic focus on volume growth in the competitive cement market. The company's total expenses for FY26 stood at ₹4,485.19 crores, compared to ₹4,961.85 crores in the previous year, reflecting improved cost management. Finance costs decreased significantly to ₹99.33 crores from ₹267.17 crores in FY25.
