UltraTech Cement Q1 profit rises 17 per cent as sales and volumes power ahead

MUMBAI: Strong demand, rising volumes and steady pricing helped UltraTech Cement lay a solid foundation for FY27, with the country’s largest cement maker reporting a 17.2 per cent increase in consolidated net profit for the quarter ended June 30.

The company posted a consolidated net profit of Rs 2,604 crore in the April to June quarter, up from Rs 2,221 crore a year ago. Consolidated net sales rose 16.3 per cent to Rs 24,465 crore from Rs 21,040 crore, reflecting healthy demand across key markets.

Operating performance also strengthened during the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to Rs 5,146 crore from Rs 4,591 crore a year earlier, supported by higher sales volumes and continued operational efficiencies.

A key driver was domestic grey cement sales, which climbed 13.1 per cent year on year to 39.2 million tonnes. The company attributed the growth to robust execution, operational improvements and the successful integration of acquired assets.

On a per tonne basis, operating EBITDA improved to Rs 1,214, an increase of Rs 16 over the previous year. The rise suggests that cement makers were able to retain most of the price increases introduced at the beginning of the quarter to offset higher fuel and packaging costs following the West Asia crisis.

With installed cement capacity touching 200 million tonnes per annum, UltraTech operated at 81 per cent capacity utilisation during the quarter. The company said strong demand from residential housing, commercial real estate and infrastructure projects continued to support production levels.

The turnaround at subsidiary The India Cements also gathered pace. The company reported a normalised profit after tax of Rs 52 crore during the quarter, compared with a net loss of Rs 183 crore in the corresponding period last year. Sales volumes at the subsidiary grew 18.5 per cent.

UltraTech acquired India Cements around two years ago and has since completed the transition to a unified UltraTech branding strategy by retiring three of ICL’s legacy brands. The company also announced plans to add 2.8 million tonnes per annum of capacity across Tamil Nadu and Rajasthan under the India Cements business, with commissioning expected in FY28.

Expansion remains firmly on UltraTech’s agenda. The company plans to add 15.9 million tonnes per annum of capacity during FY27, including new slag mills at Visakhapatnam and Patratu. Of this, 8.7 million tonnes per annum has already been commissioned in the first quarter.

Including overseas operations, UltraTech expects total cement capacity to reach 212.7 million tonnes per annum by the end of FY27 and expand further to 242.5 million tonnes per annum by the close of FY28. Much of the upcoming capacity will be concentrated in northern India, alongside incremental additions in other regions.

Investors welcomed the strong quarterly performance and expansion roadmap. Shares of UltraTech Cement closed 1.5 per cent higher at Rs 11,903 on the National Stock Exchange after the results were announced.

With demand remaining resilient and fresh capacity coming on stream, UltraTech has started FY27 on solid ground. The company now appears well placed to strengthen its market leadership as India’s construction and infrastructure activity continues to gather momentum.