UltraTech Cement delivered its highest-ever June quarter performance, with consolidated net profit attributable to owners rising 17% year-on-year to ₹2,604 crore compared to ₹2,226 crore in the corresponding quarter of the previous financial year. The cement major reported revenue from operations increasing 16% year-on-year to ₹24,648 crore, demonstrating strong operational momentum across the company's diversified portfolio. EBITDA grew 12% YoY to ₹5,146 crore from ₹4,411 crore in the previous year, with the EBITDA margin at 20.4%, marginally higher than 20.7% in the corresponding quarter last year and ahead of the CNBC-TV18 poll estimate of 20.2%. Profit before tax (PBT) jumped 15.71% to ₹3,480.43 crore in Q1 FY27, while profit before interest, depreciation and tax (PBIDT) stood at ₹5,146 crore, up 12.09% from ₹4,591 crore in Q1 FY26. As per The Economic Times, the company achieved its highest-ever June quarter volume and profit, with volume growth exceeding industry expectations and indicating market share gains.
The company demonstrated exceptional operational performance with YoY volume growth of 13.1% in the June quarter, significantly outpacing the industry's expected volume growth of 7-8%. According to The Economic Times, capacity utilisation of 81% in a seasonally transitioning quarter on an enlarged 200 million tonnes base speaks to the depth of our demand pipeline. With an annual production capacity of over 200 million tonnes, UltraTech commands about 28% market share in the world's second-largest market for building materials. The company's manufacturing platform continued to strengthen after crossing 200.1 MTPA domestic grey cement capacity and 205.5 MTPA global capacity in April 2026. Operating EBITDA per tonne improved to ₹1,214, compared with ₹1,198 per tonne in the corresponding quarter last year, indicating enhanced operational efficiency and pricing power across the company's operations.
Despite facing significant cost pressures from the West Asian crisis, UltraTech Cement demonstrated exceptional cost discipline during the quarter. As per The Economic Times, the company absorbed and is absorbing the sharpest imported fuel cost shock in recent memory during the quarter, on a volume base enlarged by acquired assets that are still ramping up to system profitability. Management expects costs to increase by ₹130-140 per tonne sequentially, which is typically the weakest quarter due to monsoon rains, with higher costs including maintenance and fuel costs. Cement prices improved through June and are expected to remain broadly stable during the monsoon season, supported by elevated industry cost pressures. The Economic Times reports that UltraTech absorbed the shock better than any peer, and will harvest a relief faster than any peer. Cement prices are expected to hold broadly steady through the monsoon quarter due to the impact of increased costs, which The Economic Times describes as a constructive outcome for this time of year.
The integration of India Cements Ltd continued to progress during the quarter, with the company completing the 100% brand integration of India Cements and Kesoram while maintaining its target of achieving ₹1,000 EBITDA per tonne at India Cements, with the full benefits of operational improvement capex expected by Q4 FY28. According to The Economic Times, the turnaround of India Cements continued to gain momentum, with the subsidiary posting a normalised profit after tax of ₹52 crore in Q1 FY27, compared with a net loss of ₹183 crore in the year-ago quarter, supported by the 18.5% volume growth. The company's team has been successful in converting the customers who were buying a 'B' or 'C' category brand of cement into an 'A' category brand of cement, willing to pay a price premium, as per The Economic Times. Additional capacities will help the company scale to more than 212 million tonnes of annual production capacity this fiscal and more than 242 million tonnes by the end of FY28 through a balanced combination of greenfield projects, brownfield expansions and debottlenecking opportunities.
The cement major's impressive quarterly results have been well-received by investors, with shares closing 1.5% higher on the BSE at ₹11,897.80 following the earnings announcement. As per The Economic Times, the stock gained after multiple brokerages raised their target prices for the stock following its Q1 earnings and strong guidance. JM Financial reiterated UltraTech as its top pick in the sector, arguing that the company is poised for structural improvement in return ratios over the next three-four years due to rising asset turnover, low cost of expansion, and improving profitability. Nuvama maintained a 'Buy' call but increased the target price to ₹15,209 from ₹14,502, implying an upside potential of nearly 28% from the stock's previous closing price of ₹11,903. Motilal Oswal reiterated its 'Buy' call with a target price of ₹13,800, maintaining its positive outlook on the company's growth prospects. Looking ahead, UltraTech Cement outlined ambitious expansion plans with expectations to add 15.9 MTPA of capacity during FY27 and 29.8 MTPA during FY28 as it continues to expand through a combination of greenfield projects, brownfield expansions and debottlenecking initiatives.
