Orient Cement Limited ↗

OCL became a subsidiary of Ambuja on April 22, 2025. Ambuja is the second largest cement manufacturer in India in terms of installed capacity and volumes sold. As on June 30, 2025, Ambuja had installed capacity of 104.5 MTPA (including OCL’s capacity). Following the acquisition by Ambuja, the Company has formalised a MSA with Ambuja and ACC. These agreements cover the procurement and sale of raw materials and spare parts, as well as the provision of services. Under the MSA, Ambuja and ACC will

Pradesh The company’s market position is strengthened by its diversified regional presence, which allows the company to limit cyclicality in a particular region. The company’s major market is Maharashtra followed by Telangana, Karnataka and Madhya Pradesh. The company also has modest presence in Gujarat. The company is able to cater different regions supported by its plant locations in Devapur (Telangana), Chittapur (Karnataka) and split grinding unit in Jalgaon (Maharashtra). It should be noted

OCL meets majority power requirements through its coal-based captive power capacity of 95 MW. The company also recently added 10.1 MW Waste Heat Recovery System at its Chittapur (Karnataka) plant, which was partly commissioned in mid-FY24 and rest in FY25. The company has also set up solar capacities for Jalgaon facility under captive scheme of 17.2 MWdc, which provides majority power consumed by Jalgaon plant. The company is also setting up a solar power plant of 16 MWdc at its Chittapur plant

The company has strong net worth at ₹1743 crore (₹1690 crore) and overall gearing at 0.10x (0.17x) as on March 31, 2025 (2024). Supported by healthy capital structure, the company’s debt coverage metrics also have been healthy with interest coverage and net debt to profit before interest, lease rentals, depreciation and taxation (PBILDT) of 14.59x (14x) and 0.27x (0.44x) respectively in FY25 (FY24). CareEdge Ratings expects the solvency ratios to remain robust in the medium term

The cement industry is marked by significant regional play with intense competition from moderate-to-large-sized players. The company registered de-growth in total operating income (TOI) of 15% year-on-year (y-o-y) in FY25 to ₹2710 crore considering dip in volumes by 12% y-o-y to 5.4 MT in FY25 and decline in net sales realisation (NSR) to ₹5008 per tonne in FY25 from ₹5182 per tonne. The cement industry witnessed pressure on volumes and consequently prices in FY25. This was even more pronounced

The company’s operating profitability margin deteriorated in FY25 to 11.11% from 14.16% in FY24. Accordingly, PBILDT per tonne reduced to ₹558per tonne in FY25 against ₹737 per tonne in FY24. This was largely considering decline in NSR. The total cost per tonne largely remained the same in FY25 y-o-y at ₹4461 per tonne in FY25 against ₹4466 per tonne in FY24. Lower capacity utilisation in FY25 led to higher fixed cost absorption per tonne of cement. However, this was mitigated by reduction in

Southern India cement market is characterised by overcapacity considering significant limestone reserves and installed cement capacities in southern India against demand. The company has partial presence there leading to moderate capacity utilisation and limited ability for passing incremental pricing.