Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68055
Volume:
10 |
10 |
Oct 2026
Pages:
1--
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Mangement
Lovely professional university
Mangement
Lovely professional university
Mangement
Lovely professional university
In this study we have examined the capital structure, financial leverage as well as Weighted Average Cost of Capital (WACC) of UltraTech Cement over a particular period of FY2020-21 to FY2025-26. Our primary objective is the evaluation of changes that has happened in the company’s debt equity structure, financial risk, interest servicing capacity and cost of capital. We have used secondary data here which are obtained from Annual reports and audited financial statements. Various ratios and WACC has been analysed in this study. Through the findings we can know that these is less dependence on debt until FY2023-24, the debt equity ratio has declined from 0.46 to 0.17. Leverage has increased in FY2024-25 and it was 0.31. But it declined slightly in FY2025-26 to 0.28. WACC fluctuations can also be seen between 10.56% and 15.10% also reaching to 13.19% in FY2025-26. Overall, we can say that UltraTech has maintain a relatively strong financial position but some factors need to be considered like careful management of leverage and financing costs. These are really important to maintain financial stability as well as to create shareholder value.
KEYWORDS
UltraTech has been able to maintain a strong equity position throughout the period of FY2020-21 to FY2025-26. The equity ratio was above 50% every year. This can indicate that shareholders’ funds financed a substantial proportion of company’s assets. · Financial leverage can be seen declining until FY2023-24. The debt equity ratio also fell from 0.46 to 0.17. Again, the debt ratio declined from 23.77% to 10.22%. The leverage rose in FY2024-25. The debt equity ratio also increased to 0.31. · The interest serving capacity was positive but also fluctuating. It had improved to 10.78x in FY2023-24 but fell to 5.63x in FY2024-25. It was also recovered to 6.92x in FY2025-26. · We have been able to achieve the objectives of this study. The analysis can demonstrate how UltraTech’s capital structure, financing cost as well as risk has changed in these years and how it affected the WACC.
Ambuja Cements Limited. (2025). Financial capital: Integrated annual report 2024-25. https://www.ambujacement.com/annual-report-2024/financial-capital.html Ambuja Cements Limited. (2026). Annual reports. https://www.ambujacement.com/investors/annual-reports Cement News. (2025). Ambuja Cements posts record FY24-25 results. https://www.cemnet.com/News/story/179062/ambuja-cements-posts-record-fy24-25-results.html Damodaran, A. (2026). Country risk premiums. New York University, Stern School of Business. https://pages.stern.nyu.edu/adamodar/New_Home_Page/datafile/ctryprem.html Damodaran, A. (2026). Data for current year. New York University, Stern School of Business. https://pages.stern.nyu.edu/adamodar/New_Home_Page/datacurrent.html Groww. (2025). Shree Cement Q4 FY25 profit falls. https://groww.in/blog/shree-cement-q4-fy25-profit-falls Institute of Chartered Accountants of India. (n.d.). Accounting standards. https://www.icai.org/ Screener. (2026). Ambuja CementsLimited: Consolidated financials. https://www.screener.in/company/AMBUJACEM/consolidated/ Screener. (2026). Shree Cement Limited: Consolidated financials. https://www.screener.in/company/SHREECEM/consolidated/
Publication Date
10/16/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
1
Total views since publication
PDF Downloads
5
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...