Motilal Oswal Recommends Selling India Cements with a Target Price of Rs 350

India Cements Sees Significant EBITDA Beat in 4QFY26

India Cements (ICEM) has reported a notable earnings beat in the fourth quarter of financial year 2026 (4QFY26). The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at INR1.6 billion, a significant improvement of 37% over the same period in the previous financial year (4QFY25), when it was INR11 million.

The strong EBITDA beat was driven by the company's all-round operating strength, leading to a substantial increase in EBITDA per ton (EBITDA/t) to INR498, a 62% quarter-on-quarter (QoQ) improvement. This growth was also reflected in the company's operating profit margin (OPM), which improved by 5.5 percentage points (pp) QoQ to approximately 13%.

In terms of net profit after tax (PAT), India Cements reported INR700 million in 4QFY26, a significant improvement over the estimated INR193 million and a reversal of the loss of INR618 million in 4QFY25.

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Valuation and Outlook

Despite the encouraging results, Motilal Oswal's research report cautions that the current valuation of India Cements at 16 times its estimated earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) for financial year 2028 (FY28E) already reflects most of the operational improvements expected due to the company's transition. As a result, the research team does not see any further scope for re-rating the stock. Based on its valuation of 14 times FY28E EV/EBITDA, Motilal Oswal has set a target price (TP) of INR350 for India Cements and has reiterated a "Sell" recommendation.

Note: The table above compares the estimated EV/EBITDA valuation multiples for India Cements.

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