UltraTech Cement Limited Sponsored GDR RegS

Demand outlook: infra-led, “cement will get absorbed” - Management’s core thesis is that government infrastructure focus is creating a robust multi-year cement demand pipeline across North/West/South/East (roads, highways, metros, ports, housing-linked social infrastructure). - They cite long-run project intensity: e.g., Punjab INR 16,000 cr road initiatives, Delhi Metro INR 12,000 cr, UP metro 1,575 km; West: Maharashtra sea link INR 58,000 cr, Pune/Mumbai metro + road concretization; South: Bangalore metro growth 96 km → 175 km by Dec’27, multiple highway expansions; East: WB INR 8,487 cr road program, Bihar INR 70,000 cr Ganga road projects; plus rail/port expansions. - Forecast/expectation: All-India cement demand expected ~9–10% YoY in Q3, and ~6.5–7% for the year as a whole (management estimates ~7.5%). - Pricing confidence: With demand strength, they expect no pricing issues even with capacity additions (“cement will easily get absorbed”).

Capacity additions & utilization: growth continues; FY27 commissioning mostly on time - Near-term capex/capacity ramp: - Q4 FY26: adding ~8–9 million tonnes - FY27: ~12 million tonnes - FY28: remainder of the phased program (no spillover to FY29 expected; at most ~quarter-level delay, with some preponements). - Utilization outlook: For Jan–Mar (next quarter), operate at >90% of installed capacity, indicating improved trade + non-trade demand. - Most recent lead/efficiency direction supports throughput economics (see next bullet).

Margins/efficiency: strong performance attributed to operating leverage + cost program execution - Management emphasised that profitability improvement is largely from: - Operating leverage from strong volume growth and tight cost control - Efficiency program progress (rather than assuming purely price-driven tailwind) - Cost/efficiency KPIs: - Clinker-cement ratio: 1.49 (responded to investor question) - Lead distance improved to 363 km (down from a higher base; part of freight/dispatch efficiency) - Target: clinker conversion target cited around 1.54, and they state they are moving in the right direction (they referenced improvement like 1.54 target, reached ~1.49 recently). - Alternative fuels/renewables: mentioned ~41% renewable energy, with potential to go toward ~60% going forward. - Efficiency cost guidance (investor target): company avoids quarter-by-quarter quantification, but guided/targeted INR 300–350/tonne improvements over a couple of years; they said full-year efficiency benefit should exceed the prior INR 86/tonne last year, with expectation to cross INR 100/tonne in FY26.