Fitch Ratings affirms ratings of UltraTech Cement at 'BBB-'

UltraTech Cement said that Fitch Ratings has affirmed the company's long-term foreign- and local-currency issuer default ratings (IDRs) at 'BBB-' with 'stable' outlook.

Fitch Ratings stated that the ratings incorporate the agencys expectation of a modest leverage profile, with EBITDA net leverage sustained around 1.5x; a leading market position in India; a large market with robust long term demand-growth potential; and cost-efficient operations.

The agency further said that factors that could, individually or collectively, lead to positive rating action/upgrade include EBITDA net leverage below 1.5x on a sustained basis; improved business mix, with segments other than grey cement contributing around 30% of revenue; expectations of neutral or positive FCF profile; and strengthening of Grasim's consolidated credit profile.

 

However, a worsening market position or industry competitive environment that causes a sustained deterioration in the unit EBITDA margin; an EBITDA net leverage sustained above 2.5x; or a weakening of Grasim's consolidated credit profile could lead to a negative rating action or downgrade.

UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third-largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 154.86 MTPA.

The cement major reported a 75.23% year-on-year (YoY) rise in consolidated net profit to Rs 1,231.58 crore for Q2 FY26, with revenue from operations growing 20.33% YoY to Rs 19,606.93 crore.

The scrip was down 0.05% to currently trade at Rs 11701 on the BSE.

Powered by Capital Market - Live News