UltraTech Cement sees strong Q1 growth, but faces margin pressure ahead

UltraTech Cement reports 46% YoY operating profit growth in Q1FY26, but faces near-term margin pressures. The company maintains a strong growth outlook for volume and revenue in FY26

UltraTech Cement’s operating profit of first quarter of 2025-26 (Q1FY26) grew 46 per cent year-on-year (Y-oY) to ₹4,410 crore and operating profit per tonne increased 33 per cent Y-o-Y to ₹1,197. The margin rose 470 basis points Y-o-Y to 21 per cent. The adjusted net profit increased 44 per cent Y-o-Y to ₹2,250 crore. The company’s standalone (excluding India Cement and UAE operations) operating profit of ₹4,200 crore was up 42 per cent Y-o-Y but down 9 per cent quarter-on-quarter (Q-o-Q).

 

Demand was driven by pick-up in government-spending. Rural revival and urban housing demand are likely drivers in the short