UltraTech Cement stock rallied 2% to ₹11,980 in Tuesday's trading following robust Q1 earnings. According to latest reports, the cement major reported 17% year-on-year growth in net profit at ₹2,599 crore for the quarter ended June 2026, compared with ₹2,226 crore in Q1 FY26. The strong performance was driven by 16% YoY increase in revenue from operations at ₹24,648 crore, as against ₹21,275 crore in the corresponding period of the previous year. The company's EBITDA grew 14% YoY to ₹5,016 crore, up from ₹4,410 crore in Q1 FY26, with operating EBITDA per tonne improving to ₹1,214 compared with ₹1,198 per million tonne in the same quarter last year. As reported by Business Standard, the strong performance was supported by robust volume growth of 13.1% YoY and capacity utilisation at 81% on an installed capacity of 200.1 MTPA in India.
While UltraTech maintained EBITDA per tonne above ₹1,200 for the second consecutive quarter despite elevated input costs, the company faces significant margin pressures ahead. According to ICICI Securities, the robust quarterly performance and upbeat management commentary do not inspire confidence for earnings upgrades just yet. Fuel costs rose by ₹40 per tonne and packaging costs by ₹50–60 per tonne sequentially in Q1FY27, with fuel consumption cost standing at ₹1.90/kcal versus ₹1.78/₹1.77 per kcal in Q1/Q4FY26. In Q2FY27, fuel costs are expected to touch ₹2/kcal, likely marking the peak, as UltraTech has already procured inventory. Overall cost inflation is expected to increase sequentially by ₹130–140 per tonne in Q2, reflecting the full-quarter impact of higher fuel costs and monsoon season effects. The management expects costs to rise sequentially in Q2FY27, with some margin pressure likely if full cost pass-through is not possible.
UltraTech demonstrated strong operational execution with volumes growing 12% year-on-year to 41.3 million tonnes, led by demand from housing and rural segments, translating into 16% revenue growth. The company's domestic grey cement sales rose 13% to 39.2mt, with industry volume growth at 7-8% according to management, indicating significant market share gains for UltraTech. During the quarter, UltraTech commissioned 8.7mtpa of new capacity, taking domestic grey cement capacity to 200.1 million tonnes per annum and total cement capacity to 205.5mtpa. Grey cement capacity is expected to rise to 207mtpa by FY27-end and 237mtpa by FY28-end. The company has guided for capital expenditure of ₹17,000 crore over the next two to three years to be funded through internal accruals. The branded UltraTech volumes surged 21% in Q1FY27 after gains of 8.6% and 15.4% respectively in FY26, while the ready mix concrete (RMC) business surged 22.4% YoY in Q1FY27.
UltraTech maintained strong financial metrics with net debt/EBITDA ratio improving to 0.87 times at end-Q1FY27 from 0.94 times in FY26-end, with management expecting the ratio to stay below 1 in FY27. The company's green power mix increased to 45.6% (up 2,300 basis points YoY), with a target of 85% by FY30. Lead distance reduced 9 kilometres YoY to 360 kilometres, while the road share for cement transport was 75%, rail share 23%, and sea share 2%. The management targets double-digit volume growth in FY27 and expects industry volumes to grow 7-8% in terms of volumes, while the company targets double-digit volume growth. Cement prices improved through April-May 2026, especially in East and South India, with management expecting prices to remain stable in Q2FY27. The India Cements acquisition integration is progressing well, with the brand integration completed and India Cements reporting domestic sales volume of 2.58 million tonnes (up 18.5% YoY) and 21% revenue growth.
According to Mirae Asset Sharekhan's technical research analyst Muthuselvaraj, UltraTech Cement stock is showing positive momentum after finding support at its swing low of ₹10,700. As reported by Business Standard, the stock has now surpassed its 200-day moving average (200-DMA) placed at ₹11,820, suggesting that the rally may continue toward the ₹12,670–₹13,200 range in the short to medium term. The analyst notes that momentum indicators are showing strength, with readings above 60 and positive crossovers across timeframes, indicating buying interest. The upside target implies a potential upside of around 10.3% from current levels. The stock has gained 4% in the past week and 5% over the month, with a year-to-date advance of 1%, while maintaining a total market capitalisation of ₹3.53 lakh crore as of July 21, 2026. Brokerages Nirmal Bang and Motilal Oswal Financial Services have maintained a 'Buy' rating on the stock, with upside targets of ₹13,662 and ₹13,800, respectively.
