UltraTech Profit Rises 21.3% to 1,501 Crore Rupees in Second Quarter
Key Facts
UltraTech Cement announced its second-quarter FY2027 results on October 19, reporting consolidated net profit after tax of 1,501 crore rupees, compared with 1,238 crore rupees in the corresponding period of the previous fiscal year. Profit growth came alongside an 18.8% increase in operating revenue to 23,295.07 crore rupees from 19,606.93 crore rupees. The company attributed its strong performance to sales growth, disciplined execution, wider reach, cost improvements and a focus on premium products. The quarter ended on September 30, 2026, while the results were announced in October. The company said the performance came despite a quarter affected by the monsoon and the continuing West Asia crisis.
Domestic gray cement sales rose 13.8% to 35.94 million tonnes in the quarter, from 31.58 million tonnes a year earlier. Capacity utilization increased to 71% from 66% in the corresponding period, as sales and available production rose. These indicators provide operating context for revenue growth, with higher volumes accompanied by improved use of existing capacity. The company said disciplined execution and wider reach contributed to sales growth, alongside cost improvements and a focus on premium products. It also said the monsoon and the West Asia crisis were headwinds during the quarter.
At the operating-profit level, earnings before interest, taxes, depreciation and amortization rose 20.3% to 3,721 crore rupees from 3,094 crore rupees in the corresponding quarter. The margin on this profit improved to 15.97% from 15.78% a year earlier. The wider margin, alongside sales and revenue growth, indicates that operating performance improved during the period, although the margin remained close to its previous level. The company linked its results to cost improvements, one of the factors it cited alongside wider reach and a focus on premium products. These figures complement the growth in domestic gray cement volumes and higher capacity utilization.
UltraTech expanded its production capacity during the quarter by adding 3.6 million tonnes per year of integrated capacity at its Betnikota facility in Andhra Pradesh. It also added 1 million tonnes per year through debottlenecking at its Visakhapatnam, Patratou and Nathdwara plants. Domestic gray cement capacity stood at 204.7 million tonnes per year on September 30, 2026. Including 5.4 million tonnes per year of capacity outside India, global gray cement capacity reached 210.1 million tonnes per year. The new additions put operational expansion at the heart of the company's strategy to keep pace with business growth.
As it expands beyond cement, the company launched its UltraVolt wires and cables business during the quarter, adding a new category to its building-products portfolio. It also added 117 megawatts of renewable energy and 10 megawatts of waste heat recovery systems. Green energy accounted for 48% of the energy mix used by the company during the quarter. These steps combine expansion of the product portfolio with development of energy sources used to run its plants. UltraTech aims to exceed production capacity of 240 million tonnes per year by March 2028 as part of its organic growth capital expenditure program.
In trading on October 21, UltraTech shares were up 1.81% at 10:38 a.m., outperforming the Nifty 50, which was up 0.34% at the same time. The share move followed the results announcement, in a session when the company's performance was stronger than the broader index, according to the cited trading data. The next step in the company's plan is to continue expanding toward its capacity target by March 2028. The path includes increasing production capacity through its organic growth program, after the company added new capacity during the quarter. The reported results cover the period ended September 30, 2026.