Further, CARE Ratings has assigned a "CARE AAA; Stable" rating to UltraTech's fixed deposit program worth Rs 74 crore.

According to CARE Ratings, the "AAA" rating reflects UltraTech's sustained market leadership in India, bolstered by its extensive and diversified cement capacities across the country. As of March 1, 2025, UltraTech boasts an installed cement capacity of 177.7 million tonnes per annum (MTPA) in India, and 183.1 MTPA globally. The company's ongoing expansion plans are set to further increase this capacity to 188.2 MTPA by the end of FY25 and 214.7 MTPA by the end of FY27, solidifying its market dominance.

Despite recent capital expenditure, acquisitions, and increased working capital requirements, the company's financial risk profile remains strong. CARE Ratings anticipates that UltraTech's net debt to profit before interest, lease rentals, depreciation and taxation (PBILDT) will remain around 1.6x by the end of FY25 and improve thereafter.

The company's liquidity position is also considered superior, supported by strong cash flow generation, moderate working capital utilization, and healthy cash reserves.

However, CARE Ratings acknowledged that UltraTech remains exposed to the cyclical nature of the cement industry and volatility in input costs and realizations.

The "Stable" outlook indicates the expectation that UltraTech will maintain its market leadership and strong credit metrics, continuing to grow its operations through capacity expansion.

UltraTech is currently executing its second and third phases of capacity expansion, including inorganic acquisitions, aiming to reach 209.3 MTPA in India and 214.7 MTPA globally by FY27. The expansion also includes increasing green power generation capacity to approximately 60% of its power requirements by FY27 and venturing into the cables and wire division with a capital investment of Rs 1800 crore over the next two fiscal years.

UltraTech, an Aditya Birla group entity, is the market leader in Indian cement industry with 177.7 MPTA grey cement capacity as on 1 March 2025 with pan-India presence. UltraTech has 35 Integrated Units (34 in India and one overseas), 34 Grinding Units (30 in India and 4 overseas), 9 Bulk Packaging Terminals – Sea + Rail (seven in India and one overseas), 2 white cement units and 3 Putty units and 5 Jetties across India, the UAE, Bahrain, and Sri Lanka.

On a consolidated basis, net profit of UltraTech Cement declined 17.30% to Rs 1469.51 crore while net sales rose 2.71% to Rs 17193.33 crore in Q3 December 2024 over Q3 December 2023.