Cement: Top Players Diverge on Profitability and Cash Flow Metrics

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Cement: Top Players Diverge on Profitability and Cash Flow Metrics

India | Building Materials EquityJuneResearch25, 2026

Exhibit 1 - Between FY24-26 ACEM saw theCement: Top Players Diverge on Profitability

highest decline in EBITDA/t, ROE and OCF-

EBITDA conversionand Cash Flow Metrics

Rs mn FY24 FY25 FY26

Earnings in FY24-FY26 show divergence across players. UTCEM has led, OCFAmbujato EBITDA Conversion (x)0.88 0.60 0.82

driven by stronger cap uti/cost efficiencies, while ACEM has seen declining UltratechShree 0.840.76 0.851.32 0.900.82

EBITDA/t, rising dep & weak cash conversion, reflecting M&A integration EBITDA/tAmbuja (Rs) 1,081 788 886

challenges. SRCM shows improving px/vol focus but still trails UTCEM UltratechShree 1,0891,228 1,070926 1,1031,168

on exit profitability. Sector return ratios muted amid competition. ACEM’s ROE (%)

Ambuja 8.1 4.4 3.8

Rs500/t savings target lacks visible traction; successful execution here Ultratech 12.4 9.4 11.2

would be upside risk to ests. .Source:Shree Company data, Jefferies12.8 5.8 8.1

Exhibit 2 - Ambuja shows flattish EBITDA/t

Divergent Headline earnings trends: UTCEM has led peers with a 15%/8% EBITDA/PAT and rising Depreciation/t over the last 8 qtrs

CAGR over FY24-26, while ACEM and SRCM reported flattish EBITDA and 29%/33% (adj) PAT 1,500 Qtrly EBITDA/t and Depreciation/t trends (1Q'25-4Q'26)

declines. This divergence is reflected in unit eco as well - ACEM’s EBITDA/T fell ~18% over 1,200

2 yrs to Rs885/t in FY26 (UTCEM: ~Rs1100/t & SRCM: ~Rs1170/t) alongside a sharp (2.2x) 900 1Q'25 4Q'26

inc in dep. This points to rising asset intensity and diminished incremental profitability. ACEM 600

mgmt has attributed this to neg surprises on acquired assets. We note that ACEM is scaling 300