HeidelbergCement India Limited has released the transcript of its earnings call held on May 29, 2026, discussing the audited financial results for the quarter and financial year ended March 31, 2026. The call, hosted by PhillipCapital India Private Limited, featured management including Managing Director Mr. Joydeep Mukherjee and CFO Mr. Anil Sharma. Key highlights from the management's discussion included a continued focus on producing blended cement, a 3% year-on-year increase in alternative fuel usage to 11%, and non-grid power exceeding 50% of the total power portfolio. EBITDA per ton stood at ₹584, up 10% year-on-year. The company announced it is now completely debt-free after repaying an interest-free loan of ₹687 million and holds cash and bank balances of ₹4,037 million. A dividend of ₹7 per share was recommended. Environment, Social, and Governance (ESG) initiatives were also highlighted, with 97% of cement produced being blended, carbon emissions below 500 kg per ton, and water positivity at 4.8x. CSR efforts touched over 21,000 lives, and green power constituted more than 40% of the company's power portfolio. Financially, for FY26, EBITDA was up 19.8% year-on-year, and Profit After Tax (PAT) increased by 25.5%. Sales volume grew by 8.8%, with EBITDA per ton rising by 10.2% to ₹584. The company noted pressure on pricing during the quarter (Q4FY26) with a ₹105 per ton decrease at the gross level, partially offset by input cost management. On a year-on-year basis, EBITDA also increased due to decreased input costs. The company is optimizing its product portfolio, with 52% of total trade volumes coming from premium products, an increase of 9% year-on-year. Trade sales represent 81% of the total mix. The outlook for Central India is positive, driven by upcoming elections and expected demand impetus, though monsoon season will see natural consumption dips. Geopolitical developments and inflation remain a concern, but the company is confident in passing on input price increases with a lag. Discussions during the Q&A included clinker production of 3.05 million tons for FY26, with capacity utilization at 90-95%. The company is working on reducing clinker content through composite cement, aiming for further headroom. Cost pressures are anticipated in the near term, with an estimated impact of ₹100-₹160 per ton, which the company expects to pass on. The green power mix has exceeded 40% and is a continuous focus. Capex plans include a blending unit in Khandwa with an investment of approximately ₹130 crores, expected to yield an additional 35,000 tons of cement capacity. The company has also been declared a preferred bidder for two mining leases in Madhya Pradesh, securing significant limestone reserves. Regarding market dynamics, the management noted capacity expansions in the Central India region are putting pressure on pricing, but expects this to stabilize and follow regional trends. Demand growth in Central India is projected at 7-7.5% for the current fiscal year. The company also mentioned plans for a potential merger of entities, including Zuari, but no firm timeline was provided. Capex for FY27 is estimated at around ₹100 crores, including the Khandwa unit, and approximately ₹120 crores for FY28.
