UltraTech Cement shares rise 2% post Q1; analysts see up to 14% upside

UltraTech Cement reported a 16.8 per cent increase in net profit for the first quarter to ₹2,599.3 on a year-on-year basis. Revenue for the quarter was up 15.9 per cent to ₹24,648.20 crore.

UltraTech Cement reported its Q1FY27 results after market hours on Monday, delivering in-line performance for the April–June quarter (Q1FY27). The cement major's earnings were supported by healthy volume growth and improved realisations, analysts noted. 

 

The cement giant's counter gained on Tuesday. At 9:21 AM, UltraTech Cement's share price was trading 1.4 per cent higher at ₹12.070 per share on NSE. In comparison, Nifty 50 was down 0.04 per cent at 24,247.45. In intraday trade, the stock gained 1.7 per cent to touch the day's high at ₹12,110 per share.

 

UltraTech Cement Q1FY27 results highlights 

• UltraTech Cement’s net profit grew by 16.8 per cent year-on-year (Y-o-Y) to ₹2,599.3 crore amid higher sales volume.
• India’s largest cement-maker posted 12.2 per cent growth in consolidated sales volume for the quarter, which stood at 41.31 million tonnes (mt). 
• The company’s operating earnings before interest, taxes, depreciation, and amortisation (Ebitda) per tonne for the quarter improved to ₹1,214, up marginally by 1.33 per cent Y-o-Y.
• The Aditya Birla group company’s revenue (from operations) increased by 15.9 per cent Y-o-Y to ₹24,648.20 crore. According to the Bloomberg poll of analysts, the company’s revenue beat the estimate of ₹24,107.38 crore, while net profit also topped the estimate of ₹2,476.48 crore.

Check Q1 Results Today 

Brokerages’ view on UltraTech Cement post Q1 Results

Nirmal Bang | Buy | Target ₹13,662

 

The brokerage noted that UltraTech Cement reported a resilient Q1FY27 performance, with consolidated revenue growth, driven by healthy volume growth and improved realisations.

 

 

"Despite elevated energy, diesel, and packaging costs, Ebitda per tonne remained strong, supported by strong topline growth and disciplined cost management. The sequential moderation across financial metrics was primarily attributable to seasonal demand weakness, a high base in Q4FY26, and higher input costs arising from recent geopolitically driven energy inflation", the brokerage noted.

 

Nirmal Bang has maintained a 'Buy' rating on UltraTech Cement and raised its target price to ₹13,662 from ₹13,558. The brokerage expects the company to deliver a compound annual growth rate (CAGR) of 9% in revenue, 14% in Ebitda, and 19% in adjusted net profit (PAT) between FY26 and FY28.

 

Motilal Oswal Financial Services | Buy | Target ₹13,800

MOFSL noted that UltraTech Cement’s Q1FY27 operating performance was in line with its estimates. The company's management remained constructive on the medium-term cement demand outlook, backed by a robust pipeline of infrastructure projects, healthy housing demand, urban redevelopment, and commercial real estate activity. It is targeting double-digit volume growth in grey cement in FY27. 

 

The brokerage noted that the cement firm's "demand momentum has been strong, driven by government-led infra projects, affordable housing, and urbanisation. While profitability is expected to be under pressure in Q2FY27 due to elevated cost inflation, opex per tonne is likely to peak during the quarter. The company should benefit from its large scale of operation, brand value, and cost control measures." 

 

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