UltraTech Cement Q2 profit jumps 75%; unveils ₹10,255-cr expansion plan

Revenue from operations rose 20.3 per cent YoY to ₹19,606.93 crore. Grey cement volumes grew 7.1 per cent YoY, while realisations improved 4.5 per cent

Aditya Birla Group’s UltraTech Cement reported a robust 75.2 per cent year-on-year (Y-o-Y) jump in consolidated net profit for the July–September quarter (Q2) of 2025-26 (FY26), reaching ₹1,231.58 crore. The growth was driven by higher cement sales volumes, improved realisations, and lower input costs.

 

India’s largest cement company also unveiled a major ₹10,255 crore investment plan to expand its cement production capacity by 22.8 million tonnes per annum (mtpa), including through its subsidiary, India Cements.

 

UltraTech’s revenue from operations rose 20.3 per cent Y-o-Y to ₹19,606.93 crore. During the quarter, grey cement volumes grew 7.1 per cent Y-o-Y, while realisations improved 4.5 per cent Y-o-Y.

 

 

“UltraTech as a brand grew 13.2 per cent in Q2FY26, thanks to the rapid conversion of output from acquired assets. Excluding India Cements in the base, our growth stood at 9.6 per cent,” said Atul Daga, chief financial officer, UltraTech Cement, during the company’s earnings call on Saturday.

 

The company transitioned to GST 2.0 effective September 22, passing on the full benefit of the tax rate reduction to customers. Average pan-Indian cement prices rose about 5 per cent Y-o-Y to ₹350–365 per bag during the quarter.

 

Total expenses increased 15.9 per cent Y-o-Y to ₹18,119.56 crore, while power costs for grey cement declined 8 per cent, and fuel and logistics costs fell 6 per cent each. The company’s operating earnings before interest, tax, depreciation, and amortisation per tonne improved to ₹966, up ₹242 Y-o-Y.

 

Premium products continued to gain traction, accounting for 37.4 per cent of total sales — a 14 per cent Y-o-Y increase.

 

For the first half of FY26, UltraTech’s revenue grew 16.4 per cent Y-o-Y to ₹40,882.38 crore, while profit rose 57.3 per cent to ₹3,457.48 crore. On a sequential basis, however, both revenue and profit dipped 8 per cent and 44.7 per cent, respectively, reflecting seasonally subdued demand during the monsoon months.

 

As of September 2025, the company’s consolidated net debt stood at ₹19,706 crore.

 

Capacity expansion plans

 

Announcing the fresh capital expenditure, Kumar Mangalam Birla, chairperson of Aditya Birla group, said, “India is now a commanding force in the global cement landscape, and UltraTech stands at the helm as its foremost champion. This latest capacity expansion follows over ₹50,000 crore invested in the past five years, underscoring deep confidence in the Indian economy and its infrastructure ambitions.”

 

UltraTech’s current cement capacity stands at 166.76 mtpa. The new expansion will take its total capacity to 240.76 mtpa globally once fully operational by 2027-28, making it one of the largest cement producers worldwide. The company expects to exit FY26 with 200 mtpa of capacity.

 

UltraTech is banking on upcoming large-scale infrastructure and industrial projects — including Vadhvan Port, Amaravati’s development, the Navi Mumbai International Airport, new data centres, and Google’s artificial intelligence hub in Andhra Pradesh — to sustain robust demand for cement in the coming years.