UltraTech Profit Rises 21.3% to 1,501 Crore Rupees in Second Quarter
Key Facts
UltraTech Cement reported results on October 19 for the quarter ended September 30, 2026, posting consolidated profit after tax of 1,501 crore rupees, up 21.3% year over year. Consolidated net sales rose 18.9% to 23,024 crore rupees, compared with 19,371 crore in the year-earlier quarter. Profit growth accompanied an expansion in domestic grey cement sales and higher capacity utilisation. But consolidated net profit was below analysts’ average estimate of 17.05 billion rupees, according to LSEG data cited by Reuters. The results highlight expanding activity alongside cost pressures that limited improvement in operating margins.
According to company data, domestic grey cement sales rose 13.8% to 35.94 million tonnes in the second quarter of fiscal 2027, from 31.58 million tonnes a year earlier. Capacity utilisation climbed to 71%, compared with 66% in the year-earlier period. The company said performance came despite the quarter being affected by the monsoon season and the continuing West Asia crisis. It attributed sales support to disciplined execution, a broader market presence, cost optimisation and a greater focus on premium products. Higher volumes provided the basis for revenue growth, while higher operating levels reflected increased use of available capacity during the quarter.
Operating profit before interest, depreciation and tax, known as PBIDT, rose 17.3% to 3,832 crore rupees, from 3,268 crore in the year-earlier quarter. Its margin on net sales, however, fell to 16.6% from 16.9%, indicating that operating profit growth did not keep pace with revenue growth. Total expenses rose 17.8% to 21,338.88 crore rupees. Energy and fuel expenses also increased 24% to 5,511.06 crore, while the cost of materials consumed rose 24.4% to 4,208.23 crore. The figures show that higher volumes and sales coincided with a marked rise in key production costs.
On pricing, the chief financial officer said average trade prices during the quarter were 1.5% below the first-quarter average, attributing this mainly to weakness in August. He added that prices rose sharply in the second half of September, increasing by about 7 to 10 rupees per bag month on month. He said October prices remained elevated after rising significantly during the month. The company expects the full impact of price increases to show in third-quarter earnings. This puts price movements after the end of September at the centre of attention for upcoming results, after August weakness weighed on the second-quarter average.
The company expanded its production capacity during the quarter, commissioning 3.6 million tonnes a year of new integrated capacity at Bethamcherla in Andhra Pradesh. It also added one million tonnes a year through debottlenecking at existing plants. As of September 30, 2026, its domestic grey cement capacity stood at 204.7 million tonnes a year, while global capacity was 210.1 million tonnes a year, including 5.4 million tonnes a year of overseas capacity. UltraTech is targeting capacity of more than 240 million tonnes a year by March 2028. That date sets the timeline for an expansion plan built on new capacity additions and improvements to plants’ operating capabilities.
UltraTech launched its UltraVolt wires and cables business during the quarter and commissioned a plant in Jhagadia, Gujarat. The production plan for the business is equivalent to consumption of 78,000 tonnes of copper and 24,000 tonnes of aluminium. The launch marks the company’s expansion into an activity adjacent to cement, alongside continued additions to its grey cement capacity. The move came amid other developments during the quarter, including the commissioning of new integrated capacity and additions through debottlenecking. The company’s key operating target in its disclosure is to reach capacity of more than 240 million tonnes a year by March 2028.