Synopsis: Small-Cap saw a 14% rise in its share price after posting a 231% YoY profit increase and 10.3% QoQ revenue growth in Q4 FY26. The company unveiled a ₹2,000 crore Capex plan for capacity expansion, energy efficiency, and renewable energy, aiming to drive long-term growth and operational efficiency.
The shares of a Small-Cap company specialising in manufacturing and supplying cement, primarily serving as a market leader in South India, are in focus as they have surged 14 percent following their Q4 results and their Capex plan.
With a market capitalization of Rs. 14,245.97 crores in the day’s trade, the shares of India Cements Ltd rose upto 15.1 percent, making a high of Rs. 469.60 per share compared to its previous closing price of Rs. 407.70 per share.
What Happened
India Cements Ltd, engaged in manufacturing and supplying cement, primarily serving as a market leader in South India, is in the spotlight following its Q4 results and capex plans as follows:
Its Revenue from operations rose by 2.58 percent YoY from Rs. 1,198 Crores in Q4FY25 to Rs. 1,229 Crores in Q4FY26, and it rose by 10.3 percent QoQ from Rs. 1,114 Crores in Q3FY26 to Rs. 1,229 Crores in Q4FY26.
Its Net Profit YoY rose by 231 percent from Rs. 18.0 Crores in Q4FY25 to Rs. 59.5 Crores in Q4FY26, and on a QoQ basis, from a loss of Rs. 2.67 Crores in Q3FY26, it turned to profit Rs. 59.5 Crores in Q4FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 1.92, compared to Rs. 0.47 in the previous year’s quarter.
Q4 Highlights
In Q4 FY26, the company achieved domestic sales of 3.12 million tonnes (MnT), reflecting an 18% year-over-year growth. Net realisations saw a 3.5% improvement quarter-on-quarter, while operating EBITDA per metric tonne increased significantly to Rs. 497, up from Rs. 305 in Q3 FY26.
The Capacity utilisation stood at 84%, showing an 11% increase compared to the previous year. The brand migration process was completed in March 2026, marking a key milestone for the company.
The sales performance for the period showed a strong preference for bag sales, which contributed to 82% of the total sales volume. Meanwhile, bulk sales made up the remaining 18%, indicating a clear dominance of bag sales in the overall product mix during the period.
Future Outlook
The company has outlined several key initiatives aimed at enhancing operational efficiency and expanding capacity. A major focus will be the conversion of 4/5-stage preheaters to 6-stage preheaters, alongside a significant upgrade to the coolers. These improvements will support process optimisation and increase the overall energy efficiency, contributing to a stronger foundation for future growth.
In addition to these upgrades, the company is investing in renewable energy by expanding its capacity to generate 24 MW of Waste Heat Recovery System (WHRS) power, as well as 263 MW of renewable energy (RE) power. This not only strengthens its sustainability efforts but also reduces reliance on conventional power sources, aligning with global energy transition trends.
The plan also includes an ambitious expansion of cement production by 2.8 million tonnes per annum (Mtpa), alongside a comprehensive focus on safety standards and employee engagement programs. With a Capex plan of Rs. 2,000 Crores over the next two years, the company is investing for growth, efficiency, and a sustainable future.
Can India Cements Sustain Growth Momentum?
India Cements’ ability to sustain its growth momentum following its ₹2,000 Crore Capex plan depends on the successful execution of key initiatives, including capacity expansion, energy efficiency improvements, and renewable energy investments.
With plans to upgrade preheaters, expand cement production by 2.8 Mtpa, and implement process optimizations, the company is positioning itself for long-term growth. However, the real challenge will be in maintaining operational efficiency, securing market share, and adapting to external factors like fluctuating raw material prices and energy costs. If executed effectively, the Capex plan could help sustain growth and profitability in the competitive cement industry.
Company Overview
India Cements Ltd is one of the leading cement manufacturing companies in India, founded in 1946 and headquartered in Chennai, Tamil Nadu. The company produces a variety of cement products, including Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Ready Mix Concrete (RMC). India Cements operates several plants across South India, contributing significantly to the region’s infrastructure development.
The company has established a strong presence in the Indian market, with a notable commitment to sustainability and innovation in its manufacturing processes. India Cements is also involved in sports, particularly through its ownership of the Chennai Super Kings (CSK) IPL cricket team, which has further boosted its brand visibility and recognition.
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