New Delhi, Oct. 21 -- Pan-India focused UltraTech Cement announced the fourth phase of its capacity expansion alongside its September quarter (Q2FY26) results last week. The plan envisages 22.8 million tonnes (mt) of incremental capacity in phases from FY28 onward, with 18 mt in north India and 4.8 mt in the west.

UltraTech will spend Rs.10,255 crore on this expansion, largely funded through internal accruals. This implies an enterprise value (EV)/tonne cost of around $52, an attractive level that provides long-term visibility of market share gains, according to ICICI Securities. However, its concentration in the north-the industry's most profitable region-could stoke a capacity race, the brokerage cautioned in its 20 October note.

Once...