UltraTech profit up 17% as domestic demand offsets rising costs
UltraTech Cement reported a 17% rise in first-quarter profit driven by strong domestic volumes and its India Cements acquisition, signalling resilient infrastructure demand despite mounting input cost pressures.
UltraTech Cement’s consolidated profit climbed 17% year-on-year to Rs 2,599 crore in the first quarter, while revenue increased 16% to Rs 24,648 crore. The earnings growth stemmed from higher cement volumes, improved pricing and expansion in its ready-mix concrete and construction chemicals divisions. Consolidated EBITDA rose 12% to Rs 5,146 crore.
Domestic demand drove the performance, with grey cement volumes in India rising 13% to 39.17 million tonnes. By contrast, overseas grey and white cement volumes fell 11% to 1.57 million tonnes. The recent acquisition of India Cements contributed Rs 1,013 crore to revenue during the period, while overseas revenue surged 245% to Rs 1,173 crore.
Investors will note the mixed cost environment that tempered the top-line momentum. Fuel costs rose 5% year-on-year to Rs 915 per tonne, and raw material expenses increased 9% to Rs 682 per tonne. Logistics offered a slight offset, declining 0.4% to Rs 1,149 per tonne due to lower lead distances, but the rising input prices highlight a potential margin risk if pricing power falters.
Expansion strategy
The company is betting heavily on sustained Indian infrastructure spending. It commissioned 8.7 million tonnes per annum of grey cement capacity in the quarter, bringing its total to 205.5 mtpa as of June 2026. Management targets 212.7 mtpa by the end of the fiscal year and 242.5 mtpa by FY28, a trajectory that will further consolidate its market share.
Beyond core cement, UltraTech is pushing into adjacent building solutions. Its ready-mix concrete revenue jumped 22% to Rs 2,235 crore on an 18% increase in volumes, supported by an expanded network of 477 plants across 170 cities. The firm also earmarked Rs 1,800 crore for a new wires and cables business, with Rs 888 crore already committed ahead of a planned third-quarter launch.
Renewable energy accounted for 45.6% of UltraTech's power mix during the quarter. The company lifted its renewable generation capacity by 35% to 1.46 GW and expanded waste heat recovery systems by 19% to 434 MW, steps that should help mitigate long-term fuel cost volatility.
