Market Performance: UltraTech Cement Shows Robust Growth
UltraTech Cement, one of India’s largest cement producers, delivered a strong performance in the December quarter of FY26. Consolidated net profit jumped to ₹1,729.44 crore, up from ₹1,363.44 crore in the same quarter last year.
Revenue from operations reached ₹21,829.68 crore, reflecting the impact of recent acquisitions and capacity expansions. Including other income, total consolidated income stood at ₹21,965.26 crore for Q3 FY26.
The company highlighted that these results are not directly comparable with last year due to strategic acquisitions, including:
- India Cements Ltd (ICL)
- Birla White WallCare (formerly Wonder WallCare)
- Ras Al Khaimah, UAE-based RAKWCT
- Merger of Kesoram Industries’ cement business effective from March 1, 2025
Company Details: Production, Sales, and Capacity Utilization
UltraTech Cement’s operational performance underlines its growth trajectory:
- Sales Volume: 33.85 million tonnes (MT), up 15% YoY
- Domestic Grey Cement Production: 36.37 MT, up 15.4% YoY
- Capacity Utilization: 77%, compared to 72% last year
- Ready Mix Concrete (RMC) Sales: ₹1,848 crore, 26% YoY growth, accounting for 3% of cement volumes
The domestic grey cement market grew 29.4%, excluding the newly acquired ICL and Kesoram volumes.
UltraTech’s EBITDA per MT improved to ₹1,051, up ₹140 YoY and ₹97 QoQ, reflecting efficiency gains despite a slight decline in sales realization: -0.4% YoY and -3.3% QoQ.
For ICL, which the company acquired last year, sales volumes recovered to 2.59 MT, a 25% increase YoY. Operational improvements, brand transition, and completion of capex plans are paving the way for profitability alignment with UltraTech’s consolidated operations.
Capex and Capacity Expansion
UltraTech continued to invest in its growth and capacity expansion during the quarter:
- Dhule Cement Works, Maharashtra: 0.6 MTPA grinding unit commissioned
- Nathdwara Cement Works, Rajasthan: 1.2 MTPA integrated unit commissioned
With these additions:
- Domestic Grey Cement Capacity: 188.66 MTPA
- Global Cement Capacity (including UAE): 194.06 MTPA
The company spent ₹2,357 crore on ongoing capex programs and reduced its net debt/EBITDA to 1.08x, reflecting strong operational cash flows.
Other Strategic Initiatives
UltraTech Cement is also progressing in its cables and wires business, with critical orders placed, civil work underway, and teams mobilized. The company remains on track for a planned launch in Q3 FY27, aligning with its diversification strategy.
Summary: UltraTech Cement Continues Strong Momentum
UltraTech Cement’s Q3 FY26 results highlight:
- Strong revenue growth to ₹21,829.68 crore
- Consolidated net profit of ₹1,729.44 crore
- Domestic grey cement production up 15.4% YoY
- Sales volume increase of 15% YoY
- Capacity utilization improving to 77%
- Strategic capex and mergers driving operational scale
The December quarter performance reflects UltraTech’s ongoing strategy of growth through acquisitions, capacity expansion, and operational efficiency.
Source: The Hindu
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