UltraTech approves ₹5,000 crore debt raise to fund cement expansion
What's the deal? UltraTech CementDealroom has a profile for this one. Try Dealroom →'s finance committee has approved raising up to ₹5,000 crore (≈$518 million) through unsecured, non-convertible debentures (NCDs) on a private placement basis. The issue covers up to 500,000 NCDs of ₹1 lakh face value each, to be sold in one or more tranches.
Why now? The debt raise follows a strong June 2026 quarter (Q1 FY27). Consolidated revenue rose ≈15.85% year-on-year to ₹24,648.20 crore, while net profit climbed ≈16.77% to ₹2,599.28 crore.
What's the endgame? UltraTech is funding an aggressive expansion. It operates 200.1 MTPA of domestic capacity and plans to reach 212.7 MTPA by the end of FY27 and 242.5 MTPA by the end of FY28.
The company's recently integrated India CementsDealroom has a profile for this one. Try Dealroom → turned profitable, posting a normalised profit of ₹52 crore in Q1 FY27, against a ₹183 crore loss a year earlier. Domestic capacity utilisation stood at 81%, with sales volume up 12.2% to 41.31 million tonnes.
What could go wrong? The raise will lift interest-servicing costs. UltraTech expects those to be offset by cash flows from newly commissioned capacity, including 8.7 MTPA added in Q1 FY27.
The signal: The tranche structure lets UltraTech time issuances to interest-rate conditions while its AAA credit rating keeps borrowing costs low. Among post-IPO debt rounds in India's real estate sector, the ₹5,000 crore raise sits in the 97th percentile by size — underlining how UltraTech is arming itself to stay ahead of a rapidly expanding Adani Group.
Read more: Sahi
Image credit: public.resource.org
