UltraTech Cement's profit jumps 49% as volumes, prices grow in Q1FY26

The consolidated net profit of the Aditya Birla group's UltraTech Cement (attributable to the owners of the parent) for the first quarter of 2025-26 (Q1FY26) grew by 48.9 per cent year-on-year (Y-o-Y) to ₹2,226 crore amid an overall sales volume growth of 9.7 per cent Y-o-Y to 36.83 million tonnes.

 

The company’s grey cement realisations also improved by 2.4 per cent Y-o-Y to ₹5,165 per tonne amid the all-India Y-o-Y cement price hike of 6 per cent during the quarter.

 

The growth in the company’s overall consolidated sales volume during the quarter came amid its acquisitions of Kesoram Industries and India Cements.

 

 

However, during the earnings call on Monday, Atul Daga, chief financial officer, UltraTech Cement, said: “We had got used to double-digit growth (in sales volume) just recently for year-after-year, quarter-after-quarter, and anything less seems to be slow.”

 

Further, the profit marginally missed Bloomberg analysts’ poll estimate of ₹2,251.03 crore. The company’s revenue from operations in Q1FY26 grew by 13.1 per cent Y-o-Y to ₹21,275.45 crore. The revenue too missed the analysts’ estimate of ₹21,506 crore.

 

“We believe our results this quarter demonstrate our ability to adapt to the changing market scenario while we deliver on our financial commitments,” Daga said.

 

According to Elara Capital, the average pan-India cement prices rose by 3 per cent quarter-on-quarter (Q-o-Q) in Q1FY26 to ₹377 per bag.

 

The Y-o-Y price increase reflects a rebound from Q1FY25, when prices declined by about 4 per cent as demand was affected by general elections. In Q1FY26, prices softened in June with the onset of the monsoon.

 

The company’s total expenses for the quarter stood at ₹18,405.19 crore, up 7.97 per cent Y-o-Y. Energy costs for grey cement were lower by 12 per cent Y-o-Y to ₹871 per tonne, mainly on account of reduced fuel prices. The company’s logistics cost during the quarter declined by 4 per cent Y-o-Y while power cost fell by 8 per cent Y-o-Y.

 

In Q1FY26, the company’s operating Ebitda/tonne was ₹1,248, up 38.82 per cent Y-o-Y. The share of premium products in the company’s sales stood at 33.8 per cent, against the mix of 24 per cent in Q1FY25.

 

Sequentially, the company’s revenue declined by 7.75 per cent and profit by 10.31 per cent.

 

UltraTech increased its grey cement capacity by 3.5 million tonnes per annum (mtpa) in Q1FY26, bringing its total capacity to 192.26 mtpa. The company aims to grow its grey cement capacity to 197.5 mtpa by the end of FY26. It spent approximately ₹2,000 crore as capital expenditure in Q1FY26.

 

The company’s consolidated net debt stood at ₹16,340 crore as of June 2025.

 

UltraTech is targeting a double-digit volume growth going ahead amid new capacity addition, mega infrastructure projects, estimated healthy rural demand, and urban housing activity. “We will grow higher than the industry,” Daga added.

 

The company’s share listed on the BSE closed at ₹12,574.35 on Monday.