INDIACEM
Large CapThe India Cements Limited
Industrials
The India Cements Limited is a cement manufacturer. The company reported improved Q4 FY26 performance driven by higher sales volume, better realizations, and cost efficiencies. It is undertaking a significant capex plan for capacity expansion and green energy transition.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 80/100Rev +3% YoY · PAT +233% YoY · margin expansion · +10% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,229 Cr | +2.6% | +10.3% |
| EBITDA | ₹153 Cr | +7750.0% | +93.7% |
| Operating margin | 12.0% | +1200 bps | +500 bps |
| PAT | ₹60 Cr | +233.3% | NDF |
| PAT margin | 4.9% | +338 bps | +515 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
INDIACEM reported a strong Q4 FY26 turnaround with PAT before exceptional items at ₹70 Crores, up from a loss, driven by 18% YoY domestic sales volume growth, 3.5% QoQ net realization improvement, and a significant jump in operating EBITDA/Mt to ₹497.
The company's Q4 FY26 results indicate a strong operational recovery, with significant improvements in profitability metrics like EBITDA/Mt and PAT. The planned capex for capacity expansion and green energy transition suggests a clear path for future growth and cost optimization. However, the increase in net debt and negative FCF in FY26 warrant close monitoring.
Sales by Type (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Cement Capacity Expansion
Expansion of Cement Capacities by 2.8 Mtpa is planned as part of a ₹ 2,000 Crores capex over next 2 years.
Green Power Transition
Plan to scale up Green Power (RE+WHRS) from 6% (FY26) to 80% by FY29, including 33MW WHRS and 60MW Renewable Power.
Operational Efficiencies
Key initiatives planned include conversion of 4/5 stage preheaters to 6 stage, cooler upgradation, and process optimization.
Cement Capacity Expansion
Expansion of Cement Capacities by 2.8 Mtpa is planned.
Waste Heat Recovery System (WHRS)
WHRS capacity planned to scale up to 33MW by FY29 from 9MW in FY26.
Renewable Energy Power
Renewable Power capacity planned to scale up to 60MW by FY29 from 5MW in FY26.
Improved Realizations
Net Realizations improved by 3.5% QoQ and 6.2% YoY in Q4 FY26.
Lower Fuel and Power Costs
Fuel cost declined 4% QoQ and 16% YoY, and Power cost declined 2% QoQ and 5% YoY in Q4 FY26.
Increased Raw Material Costs
Raw Materials cost increased 12% QoQ and 14% YoY in Q4 FY26.
Increased Net Debt
Net Debt increased to ₹ 1,271 Crores in Mar-26 from ₹ 1,135 Crores in Mar-25.
Negative Free Cash Flow
Free Cash Flow to Firm was negative ₹ 136 Crores in FY26, despite positive operating cash flow.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results show strong sequential momentum (QoQ) in realizations and operating EBITDA/Mt, indicating improved market conditions and operational efficiency. Annual (YoY) comparisons are crucial for assessing the overall recovery from previous losses and the impact of strategic initiatives over a longer period.
Domestic Sales Volume Growth
Achieved domestic sales volume of 3.12 MnT; grew 18% yoy.
Capacity Utilization
Capacity Utilization at 84%, increased by 11% yoy.
Operating EBIDTA/Mt
Operating EBIDTA/Mt of ₹ 497, compared to ₹ 305/Mt in Q3 FY26.
Net Realizations (Net of Logistics Cost)
Domestic Cement Realization (Net of Logistics Cost) of ₹ 3,791/Mt, increased by 3.5% QoQ and 6.2% YoY.
Focus on Growth and Efficiencies
Management plans a capex of ₹ 2,000 Crores over the next 2 years for capacity expansion and efficiency improvements.
Green Energy Transition
Management aims to scale up Green Power (RE+WHRS) from 6% in FY26 to 80% by FY29.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Cement Capacity Utilization | 84% (Q4 FY26) | Sustained or increasing utilization rates as new capacity comes online. |
| Operating EBIDTA/Mt | ₹ 497/Mt (Q4 FY26) | Maintenance or improvement of this key profitability metric amidst rising raw material costs. |
| Capex Execution and Funding | ₹ 2,000 Crores planned over 2 years; ₹ 223 Crores spent in FY26. | Timely commissioning of planned capacity and green energy projects, and impact on debt levels. |
| Free Cash Flow to Firm | -₹ 136 Crores (FY26) | Improvement in FCF as operational efficiencies and new capacities contribute to profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -5.3% / mo
Technical chart
INDIACEMweekly · 1Y+13.5%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 44.
- SMA20 falling (~5.6% over last month) — short-term momentum negative.
- RSI(14) at 44 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 22% off 52W high · 27% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 10/15 to the score.
- Cash flow contributes 3/10 to the score.
- Valuation contributes 3/30 to the score.
Main drags
- Fair-value margin of safety is negative at -5994.2%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 2/25; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 15th percentile of the scored universe and 11th percentile within Industrials. Main check: financial discipline is weak at 30/100.
Mixed Trust Lite: Promoter holding is 75%. Key concern: Promoter holding fell 6.5%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 11th pctile, median 68 · Large: 10th pctile, median 74
37 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 75%.
- ▸Promoter pledge is zero.
- ▸11 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Promoter holding fell 6.5%.
- ▸Operating cash flow is negative at ₹-33 Cr.
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 1.8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 124.00
- P/B
- 1.15
- EV/EBITDA
- 18.40
- Market Cap
- 11522.00Cr
Profitability
- ROE
- 0.94%
- ROCE
- 1.76%
- ROA
- 0.49%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 0.12%
- EPS 5Y
- -16.00%
- Revenue 3Y
- -6.00%
- EPS 3Y
- 31.00%
Balance Sheet
- Debt/Equity
- 0.13
- Interest Coverage
- 4.02×
- Altman Z
- 3.84
- Book Value
- 324.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 11/5
- OCF
- -33.00 Cr
- EPS TTM
- 2.11
Shareholding
- Promoter Hold
- 75.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 39%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.