UltraTech Cement to Acquire 26% Stake in Solaris Horizon Energy for ₹27.76 Crore to Secure 65 MW Captive Solar Power

UltraTech Cement Limited has entered into an Energy Supply Agreement and a Share Subscription and Shareholders Agreement to acquire a 26% equity stake in Solaris Horizon Energy Private Limited. The transaction, valued at up to ₹277.55 million (approximately ₹27.76 crore), allows India’s leading cement producer to procure 65 MW AC of captive solar power for its energy-intensive manufacturing units in Chhattisgarh. Beyond immediate cost optimization, the investment serves as a strategic hedge against the volatile thermal fuel prices of petcoke and coal that historically pressure industry margins.

Key Transaction Details and Financial Breakdown

The acquisition is structured as a cash consideration for equity in a Special Purpose Vehicle (SPV) promoted by Waaree Forever Energies Private Limited. Solaris Horizon Energy was incorporated on December 10, 2025; as a newly established entity, it has reported nil turnover since its inception.

Transaction Overview

Regulatory Framework: The 26% Captive Threshold

The specific 26% equity stake is a calculated move to satisfy the “Captive User” requirements mandated by the Indian Electricity Rules, 2005. By securing this status, UltraTech can significantly decouple its operating expenses from rising grid tariffs.

To qualify for the regulatory benefits of captive consumption, the following thresholds must be maintained:

• Minimum Equity: The captive consumer must hold at least 26% of the equity in the power generating plant.
• Minimum Consumption: The captive user must consume at least 51% of the annual energy generated by the plant.

Transitioning to a captive model enables UltraTech to claim exemptions from heavy grid-related surcharges, including the Cross-Subsidy Surcharge (CSS) and the Additional Surcharge (AS). Furthermore, under the Chhattisgarh Solar Energy Policy, the company will benefit from an exemption from state electricity duty for captive consumption, further bolstering its cost competitiveness in the region.

Project and Operational Scope

The solar power will be sourced from a dedicated project located at Village Puran, Mungeli district, Chhattisgarh. UltraTech is a lead captive participant in a larger development, with its 65 MW AC (91 MWp DC) allocation forming a portion of a 150 MW AC (210 MWp) project.

• EPC Provider: Waaree Renewable Technologies Limited has been appointed to handle the engineering, procurement, and construction (EPC) works.
• Operations & Maintenance: The contract includes two years of O&M services following commissioning.
• Project Timeline: The facility is scheduled for completion in FY 2027-28.
• Policy Oversight: The project is governed by the Chhattisgarh Solar Energy Policy, with the Chhattisgarh State Renewable Energy Development Agency (CREDA) serving as the single-window clearance body.

UltraTech’s Broader Green Energy Context

While the ₹27.76 crore investment is minor relative to UltraTech’s Q1 FY27 consolidated net profit of ₹2,599.28 crore, it represents a critical step in the company’s aggressive pivot toward sustainable energy.

1. Total RE Capacity: UltraTech recently surpassed the 1 GW (1,000 MW) milestone for installed renewable energy capacity.
2. Clean Power Mix: As of Q1 FY27, green energy accounts for approximately 41%–46% of total power requirements.
3. WHRS Integration: A key pillar of the company’s green energy mix is its Waste Heat Recovery System (WHRS) capacity, which stood at 414 MW as of March 31, 2026, with plans to reach 435 MW by the end of FY27.
4. Future Targets: The company aims for a 65% green energy mix by 2027 and 85% by 2030, with a long-term goal of 100% by 2050 under its RE100 commitment.

This disclosure is made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction is not a related party transaction, and no promoter or group company of UltraTech Cement Limited has any interest in Solaris Horizon Energy Private Limited.