UltraTech Cement rises 4% post strong Q3 show; is there more upside ahead?

Shares of Aditya Birla Group’s UltraTech Cement were ruling higher on the bourses on Tuesday, January 27, 2026, after the company 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). Net profit stood at ₹1,725.40 crore, beating analysts’ estimate of ₹1,526 crore.

 

During Q3FY26, the company’s revenue from operations rose 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. Operating earnings before interest, tax, depreciation and amortisation (Ebitda) per metric tonne improved to ₹1,051, an increase of ₹140 Y-o-Y.  

 

Following the results, UltraTech Cement share price rose 3.72 per cent to an intraday high of ₹12,829.40 per share on the BSE. 

 

Although the counter pared some gains later in the session, it continued to trade in the green, supported by the strong quarterly performance. At 10:27 am, UltraTech Cement shares were trading at ₹12,723.80, up 2.87 per cent from the previous close on the BSE. The benchmark BSE Sensex, meanwhile, was trading 286 points, or 0.35 per cent, higher at the 81,823 level.

Should you buy, sell or hold UltraTech Cement shares?

Market analysts remain positive on UltraTech Cement following the strong quarterly performance. Elara Capital has reiterated its Accumulate rating on the stock, while analysts at Choice Institutional Equities have maintained a Buy call, citing the company’s aggressive capacity expansion plans, visibility on volume growth and disciplined cost-efficiency measures.  Analysts expect margins and Ebitda to improve over the medium to long term, supported by favourable demand conditions and the company’s ability to fund expansion largely through internal accruals. 

Elara Capital has retained its Accumulate rating with a revised target price of ₹14,553 (earlier ₹14,088), noting that the company is well-positioned to outpace industry growth amid improving demand and the ramp-up of recently added capacities through organic and inorganic routes.

 

According to Elara Capital, UltraTech’s strong expansion pipeline enhances medium-to-long-term volume visibility, while margins are likely to benefit from ongoing cost-efficiency initiatives, including focused efficiency capex at ICEM and KCL.

 

“We raise our Ebitda estimate by 7 per cent for FY26E but largely retain it for FY27E–28E. As we roll over to December 2027E from September 2027E, we raise our target price to ₹14,553 from ₹14,088 on 18x (unchanged) December 2027E EV/Ebitda. We reiterate Accumulate. Sub-par demand, weak cement prices and a sharp rise in fuel prices are key risks to our call,” Elara Capital said in its research note.

 

Meanwhile, analysts at Choice Institutional Equities have maintained their Buy rating on UltraTech Cement (UTCEM) with a target price of ₹15,210, stating that their core investment thesis remains unchanged.

 

Prashanth Kumar Kota and Ashutosh Murarka, analysts at Choice, remain positive on UTCEM, citing the company’s ambitious and continuous capacity expansion plans to add around 8 million tonnes (MT) of capacity in Q4FY26 and 12 MT in FY27E. Other positives highlighted include funding expansion largely through internal accruals, a proactive cost-optimisation strategy, a favourable sectoral pricing environment, and significant demand growth expected from the southern market.

 

“We value UTCEM on our EV/CE framework, assigning an EV/CE multiple of 3.75x/3.75x for FY27E/FY28E. UTCEM’s return on capital employed (ROCE) is projected to increase from 8.4 per cent in FY25 to around 15.7 per cent in FY28E under reasonable operational assumptions. On our target price of ₹15,210, FY28E implied EV/Ebitda, P/BV and P/E multiples stand at 19.0x, 4.5x and 31.7x, respectively,” Choice said in its report.

 

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