Quick Take
- UltraTech Cement approved raising up to Rs 5,000 Cr through unsecured non-convertible debentures on July 23, 2026.
- Issue covers 5,00,000 debentures of Rs 1,00,000 each, placed privately in one or more tranches.
- Funds support a capacity push past 242.5 MTPA by FY28, with tenure and coupon still awaited.
In This Article
The UltraTech NCD issue won approval on July 23, 2026, when the finance committee of UltraTech Cement‘s board cleared a plan to raise up to Rs 5,000 Cr through privately placed non-convertible debentures, the company said in a stock exchange filing.
The Aditya Birla Group company will issue up to 5,00,000 fully paid, unsecured, listed, rated, redeemable, rupee-denominated, non-convertible, non-cumulative debentures of Rs 1,00,000 each. The issue will come in one or more tranches. Tenure, coupon rate, and tranche timelines are still awaited. The company reports its financial results and filings through its official investor financials page.
StartupFeed Insight
The interesting part is not the amount, it is the timing. UltraTech told analysts on July 20 that growth capex would run largely on internal accruals, with net debt to EBITDA at 0.87 times. Raising Rs 5,000 Cr days later signals the company wants a cheap funding buffer locked in before rates move, not a cash gap. Bond desks and fixed-income investors should watch the first tranche pricing closely. StartupFeed expects the opening tranche to price inside 7.5 percent, given the CRISIL AAA/Stable rating, and to be launched before the end of Q2 FY27. By Avinash.
UltraTech NCD Issue: The Numbers
A non-convertible debenture (NCD) is a corporate bond that cannot be converted into equity shares. The UltraTech NCD issue is unsecured, which means it is backed by the company’s credit standing rather than pledged assets. Here is what the filing confirms.
| Metric | Detail | Notes |
|---|---|---|
| Total Raise | Up to Rs 5,000 Cr | Company filing, July 23, 2026 |
| Instrument | 5,00,000 NCDs of Rs 1,00,000 each | Unsecured, listed, rated, redeemable |
| Route | Private placement | One or more tranches |
| Approving Body | Finance committee of the board | Meeting held July 23, 2026 |
| Credit Rating | CRISIL AAA/Stable, IND AAA/Stable | Company disclosure on NCDs |
| Tenure and Coupon | Not disclosed | Awaited at tranche stage |
The most telling detail is the AAA rating on the instrument. UltraTech discloses CRISIL AAA/Stable and IND AAA/Stable ratings on its NCDs, which places the paper at the top of India’s corporate credit ladder and should keep borrowing costs low.
About UltraTech Cement
UltraTech Cement is India’s largest producer of grey cement, ready-mix concrete, and white cement. It is part of the Aditya Birla Group and is headquartered in Mumbai. Consolidated grey cement capacity stood at 205.5 MTPA as of June 2026, including 5.4 MTPA overseas, according to the company. Its white cement and putty capacity is 3.2 MTPA. The stock trades on the BSE under code 532538 and on the NSE as ULTRACEMCO.
How will UltraTech use the Rs 5,000 Cr?
UltraTech has not earmarked the NCD proceeds to a named project, but its capital plan is public. The company has about Rs 17,000 Cr of capex (capital expenditure) planned over the next two to two-and-a-half years, chief financial officer Atul Daga told analysts on the Q1 FY27 earnings call. UltraTech also spent Rs 9,500 Cr on capex in FY26.
“We’ll take our consolidated capacity beyond 242 mtpa, with grey cement capacity reaching 212.7 mtpa by the end of FY27,” said Atul Daga, chief financial officer, UltraTech Cement.
That guidance frames the fundraise. Grey cement capacity moves to 212.7 MTPA by end-FY27 and past 242.5 MTPA by FY28. A separate Rs 1,800 Cr wires and cables venture is also underway, with Rs 888 Cr committed as of June 2026 and commercial launch set for Q3 FY27. The debenture money gives UltraTech a low-cost cushion across both tracks.
Is UltraTech Cement profitable right now?
Yes. UltraTech reported consolidated net profit of Rs 2,599.3 crore for Q1 FY27, up 16.8 percent YoY, according to the company’s quarterly results. Revenue from operations rose 15.9 percent YoY to Rs 24,648.2 crore. Consolidated sales volume grew 12.2 percent YoY to 41.31 million tonnes.
Operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) per tonne came in at Rs 1,214, up 1.33 percent YoY. Consolidated EBITDA rose 12 percent to Rs 5,146 crore. Both revenue and profit beat the Bloomberg analyst consensus of Rs 24,107.38 crore and Rs 2,476.48 crore respectively. Net debt to EBITDA improved to 0.87 times as of June 2026 from 0.94 times at the start of FY27, and management expects the ratio to stay below one time through FY27.
Costs are the soft spot. Fuel, raw material, and packaging costs rose during the quarter, and management guided for a further Rs 130 to Rs 140 per tonne cost increase in Q2 FY27.
How does UltraTech compare with Adani Cement?
UltraTech leads India’s cement sector on capacity, but the gap is being contested. Adani Cement, which operates through Ambuja Cements and ACC, has raised its FY28 capacity target to 155 MTPA from an earlier 140 MTPA plan, per Adani Group communications.
| Company | Current Capacity | FY28 Target |
|---|---|---|
| UltraTech Cement | 205.5 MTPA (June 2026) | Over 242.5 MTPA |
| Adani Cement (Ambuja and ACC) | About 118 MTPA (FY26) | 155 MTPA |
The structural difference is funding posture. UltraTech is expanding with net debt to EBITDA under one time and an AAA rating on its debt, which lets it raise money like the UltraTech NCD issue at low cost rather than diluting equity.
What’s Next
The next checkpoint is tranche pricing. UltraTech must file its placement memorandum and term sheet on a SEBI-regulated Electronic Book Provider platform before the issue opens, since SEBI (Securities and Exchange Board of India) made EBP use mandatory for private debt placements of Rs 20 crore or more. Watch for the first tranche coupon and tenure disclosure in the coming weeks. Will bond investors price UltraTech’s paper tighter than last year?
Frequently Asked Questions
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Avinash. Have a tip? Write to us at editorial@startupfeed.in.
