Ultratech Cement Share Price Falls Despite Plans to Commission New Projects

Ultratech Cement share price saw a slight increase on March 27. The stock rose to ₹11,639 apiece. This followed the company’s announcement of successful expansions. These expansions are across multiple locations in India. They will significantly boost the company’s production capacity.

Ultratech Cement Share Price Outperforms Nifty 50

Over the past month, the cement giant’s stock has performed well. It surged by 14%. This notably outperformed the Nifty 50 index. The benchmark index only increased by 6% during the same period.

Capacity Expansion At The Maihar Facility

UltraTech Cement has commenced operations at its Maihar facility. This facility is located in Madhya Pradesh. A clinker capacity of 3.35 million tonnes per annum (mtpa) is now operational. Additionally, one of the two planned cement mills is also operational. This mill has a capacity of 2.7 mtpa. The second grinding mill is expected to be commissioned in Q1 FY26.

The company stated its enthusiasm over these developments. The brownfield clinker capacity and the first cement mill are now operational at Maihar. The second grinding mill is expected in the first quarter of FY26. This information was shared in a regulatory filing.

Expansions In Maharashtra And West Bengal

Furthermore, UltraTech Cement completed brownfield expansions at other locations. These include grinding units in Dhule, Maharashtra. This expansion adds 1.2 mtpa. Another expansion was in Durgapur, West Bengal, adding 0.6 mtpa. The company also launched its first bulk terminal in Uttar Pradesh. It is strategically located in Lucknow. The terminal has a handling capacity of 1.8 mtpa.

Increased Production Capacity

As a result of these expansions, UltraTech’s domestic grey cement production capacity has increased. It now stands at 183.36 mtpa. The company’s overall global capacity has also expanded. Including international operations, it is now 188.76 mtpa.

Conclusion

UltraTech Cement’s stock saw a mild increase after announcing successful capacity expansions. These expansions boost its production and global standing. UBS upgraded the stock, citing strong execution and growth prospects.

As of 2.22 PM on Friday, 28 March, Ultratech Cement share price was down 0.88%, and was trading at ₹11,497.0.

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