UltraTech Cement's profit up by 49% in June quarter

Mumbai, 21 July 2025: UltraTech Cement Ltd (NSE: ULTRACEMCO, BSE: 532538) has reported a sharp 49% year-on-year increase in consolidated net profit for the first quarter of FY26, reaching ₹2,226 crore. This performance was driven by robust demand, improved operational efficiency, and strategic gains from recent acquisitions, positioning the company strongly for sustained growth in the cement sector.

Following the announcement of its strong Q1FY26 results, UltraTech Cement Ltd’s share price closed at ₹12,561.00 on 21 July 2025 at 3:30 PM IST, rising by ₹63.00 or 0.50% for the day. The stock opened at ₹12,560.00 and touched an intraday high of ₹12,714.00 — also its 52-week high — before dipping to a low of ₹12,374.00. The company’s market capitalisation stood at ₹3.69 lakh crore, with a P/E ratio of 61.23.

Strong Volume-Driven Revenue Pushes Q1FY26 Income to ₹21,455 Cr

UltraTech’s consolidated revenue from operations stood at ₹21,275.45 crore in Q1FY26, marking a 13% rise over ₹18,818.56 crore in Q1FY25. Total income, which includes other operating and non-operating income, came in at ₹21,455.68 crore, also showing healthy year-on-year growth. This rise reflects higher cement demand from housing and infrastructure sectors, as well as added contributions from the company’s recently acquired entities — particularly India Cements and Kesoram’s cement division.

Standalone Profits Jump Over 48% as Company Delivers Strong Operational Performance

On a standalone basis, the company reported a net profit of ₹2,231.79 crore, up from ₹1,506.54 crore in Q1FY25 — representing a 48.2% growth. The profit before tax came in at ₹3,011.16 crore, indicating substantial operational strength at the core business level. Revenues also rose to ₹19,635.26 crore, as compared to ₹18,281.43 crore a year ago. UltraTech also retained strong margins: Operating margin stood at 22%, while net profit margin rose to 12% in Q1FY26 from 8% in Q1FY25.

Energy Cost Decline Boosts Margins While Raw Material Costs Remain Stable

Cost control remained a core driver of profitability:

• Energy costs declined by 12% YoY due to softening fuel prices, contributing significantly to the margin expansion.
• Raw material costs rose modestly by 2%, but were offset by efficiency gains.
• Net profit margin expanded to 11% from 8% YoY, showing stronger cost-to-income leverage.

India Cements Delivers Turnaround as Post-Acquisition Integration Bears Fruit

UltraTech’s acquisition of India Cements in December 2024 began paying off visibly:

• EBITDA improved to ₹92 crore, a stark recovery from a loss of ₹9 crore in Q1FY25.
• An additional 0.3 MTPA capacity was unlocked through debottlenecking.
• Further capital expenditure and efficiency initiatives are planned over the next two years.

Capacity Expansion Adds 3.5 MTPA, Taking Total to 192.26 MTPA

UltraTech added 3.5 million tonnes per annum (MTPA) of grey cement capacity during the quarter. With this, total installed capacity reached 192.26 MTPA, strengthening the company’s leadership position in the Indian and global cement industry.

Sustainability Push Gains Pace: WHRS Capacity Now at 363 MW

The company continued its push toward greener operations:

• Added 12 MW of Waste Heat Recovery System (WHRS) capacity during the quarter.
• Green power now accounts for 39.5% of total energy consumption.
• Ranked 9th globally in the S&P Dow Jones Sustainability Index 2024 (Construction Materials sector) — the highest ranking for any Indian cement manufacturer.

Q1 Surge Driven by High Volumes and Efficiency, But Trailing Twelve Months (TTM) Growth Shows Mixed Signals

UltraTech Cement’s Q1FY26 performance aligns closely with several of its core operational and financial metrics. The company recorded a quarterly year-on-year revenue growth of 17.7%, reflecting strong volume-led performance, while its net profit grew 31.2% during the same period—both ranking high within the industry. The operating profit margin for the quarter stood at 20.7%, showcasing continued operational efficiency.

Despite the quarterly growth, net profit growth on a TTM basis declined by 0.3%, indicating that recent gains are more reflective of short-term improvements. The company also reported an operating revenue growth of 8.3% on a TTM basis, above the industry median.

Corporate Decisions Reflect Strategic Focus and Governance Updates

Leadership Commentary Signals Confidence in Long-Term Growth Strategy

K.C. Jhanwar, Managing Director, said: “Our Q1 performance reflects the strength of our expanded platform and strategic acquisitions. The successful turnaround of India Cements and capacity expansion reinforce our leadership in the cement sector.”

Positive Outlook Backed by Infrastructure Demand and Green Energy Push

UltraTech remains optimistic about India’s infrastructure-led economic trajectory. With consistent investments in capacity building, cost efficiencies, and renewable energy, the company is positioned to lead in sustainable and scalable cement production in India and beyond.

About UltraTech Cement Ltd

UltraTech Cement Ltd, part of the Aditya Birla Group, is the third-largest cement company in the world (outside China), with 192.26 MTPA of grey cement capacity and 2.7 MTPA of white cement/putty capacity. The company is listed on both BSE and NSE and has committed to achieving Net Zero emissions by 2050 under the GCCA roadmap.

REF: https://nsearchives.nseindia.com/corporate/ULTRACEMCO_21072025134911_OutcomeofBM.pdf

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