UltraTech Cement's Q3FY26 profit grows 27% Y-o-Y, beats analyst estimates

Aditya Birla Group’s UltraTech Cement reported a robust 26.92 per cent year-on-year (Y-o-Y) jump in consolidated net profit for the third quarter of FY26 (Q3FY26), taking in ₹1,725.40 crore and beating analysts’ estimate of ₹1,526 crore.

 

UltraTech’s revenue from operations rose by 22.78 per cent on an annual basis to ₹21,829.68 crore, also beating Bloomberg analysts’ estimate of ₹20,953 crore.

 

The performance was driven by higher sales volumes, which stood at 38.87 million tonnes (MT), up 15 per cent Y-o-Y. Realisations, however, declined 0.4 per cent Y-o-Y and 3.3 per cent quarter-on-quarter (Q-o-Q) on account of lower prices following cuts in the goods and services tax (GST). In Q3FY26, cement prices declined 7 per cent Y-o-Y and 9 per cent Q-o-Q due to the GST rationalistaion as well as an increase in competitive intensity.

 

“Quite often, everybody is focused on cement prices, which have remained subdued post-GST change. The last week of September, October, and November saw some softening (of) prices. But with growing demand, we are witnessing improvement in prices in all segments across the country,” said Atul Daga, business head and chief financial officer, UltraTech Cement, during the company’s earnings call on Saturday.

 

The company’s operating earnings between interest, tax, depreciation, and amortisatio, or Ebitda, per metric tonne improved to ₹1,051, up ₹140 Y-o-Y.

 

Total expenses increased 19.92 per cent from the corresponding period last fiscal to ₹19,588.54 crore, while power costs for grey cement declined 15 per cent, and fuel and logistics costs fell 2 per cent and 4 per cent, respectively. However, raw material costs for grey cement increased by 6 per cent over Q3FY25.

 

“There have been cost increases in the cost of pet coke and coal. The new labour code will have its own impact ... rupee depreciation. All these will have an impact on the cement industry. There is reason to pass on these cost escalations into prices. We are very confident of a very bright future,” Daga added.

 

Further, pursuant to the implementation of the new Labour Code in the country, the company has recognised ₹88 crore as an exceptional expense towards additional gratuity and leave encashment obligations.  On a QoQ basis, revenue and profit grew by 11 per cent and 40.09 per cent, respectively.

 

For the first nine months of FY26, UltraTech’s revenue grew 18.56 per cent YoY to ₹62,712.06 crore, while profit rose 45.7 per cent to ₹5,182.88 crore.

 

As of December 2025, the company’s consolidated net debt stood at ₹17,929 crore.

 

In comparison, smaller peers such as Nuvoco Vistas Corp reported a 7 per cent rise in sales volumes, which stood at 5 MT. Dalmia Bharat reported volumes of 7.3 MT (up 9.5 per cent), while JK Cement’s grey cement sales volume stood at 5.32 MT, up 22 per cent Y-o-Y.

 

UltraTech’s capacity expansion programme continued at a strong pace during the quarter, as it commissioned 0.6 million tonnes per annum (mtpa) of cement capacity in Maharashtra and 1.2 mtpa in Rajasthan. With these additions, UltraTech’s domestic grey cement capacity stands at 188.66 mtpa. Along with 5.4 mtpa cement capacity in the UAE, the company’s global capacity has reached 194.06 mtpa.

 

In Q2 FY26, the company announced a major ₹10,255 crore investment plan to expand its cement production capacity. The new expansion will take its total capacity to 240.76 mtpa globally once fully operational by FY28, making it one of the largest cement producers worldwide.

 

UltraTech is betting on upcoming large-scale infrastructure projects across various states and sectors to sustain robust demand for cement in the coming years.