Higher cement sales help UltraTech beat earnings estimates

India’s largest cementmaker, UltraTech Cement Ltd, reported better-than-expected net profit for the December quarter, beating analyst estimates on the back of strong cement sales.

The consolidated net profit of the Aditya Birla Group's cement arm rose 27% year-on-year to ₹ ₹1,725.40 crore, according to its exchange filings. The profit beat the Bloomberg consensus estimate of ₹1,526 crore based on a poll of 21 analysts.

The Mumbai-headquartered cement maker’s revenue from operations rose by 23% to ₹21,829.68 crore during the quarter, compared with ₹17,778.83 crore a year ago, supported by higher sales volumes and contributions from acquired businesses. The company’s consolidated sales volumes stood at 38.87 million tonnes per annum (mtpa), up 15% from Q3FY25.

Strong demand

The management during a post-earnings interaction with analysts said demand remains strong as the government’s infrastructure push is translating into a robust, multi-year project pipeline across regions, supporting sustained cement consumption. The company is well-positioned to capture this demand through its pan-India network, ongoing capacity expansion and improving operating efficiencies, while maintaining a prudent balance sheet and funding growth through internal accruals.

“India is witnessing a multi-year infrastructure build-out across roads, metros, railways, ports, and housing,” said Atul Daga, chief financial officer at UltraTech, in a post-earnings call with analysts, adding that “new avenues such as data centres, renewable energy, and urban infrastructure are driving incremental demand”.

Cement prices remained subdued post-GST change. “September, October, and November saw some softening prices. But with growing demand, we are seeing price increases across all segments nationwide. There have been cost increases in the cost of pet coke and coal. The new labour code will have its own impact, rupee depreciation. All these will have an impact on the cement industry, and obviously, there is reason to pass on these cost escalations into prices,” said Daga.

UltraTech’s domestic grey cement capacity is 188.66mtpa. Including 5.4mtpa in the United Arab Emirates (UAE), its consolidated capacity stands at 194.06mtpa. By FY28, UltraTech plans to increase its total global cement capacity to 240.76mtpa.

Daga also outlined the additions over the next quarter and years.

“We should have approximately 8 million tonnes to 9 million tonnes more coming in this quarter, and the balance, I think 16-12 million tonnes in fiscal '27, and then remaining will be in '28,” he said.

In the current quarter, the company expects to operate at more than 90% of its installed capacity, said the company’s chief financial officer, up from 77% in Q3FY26.

UltraTech, in a statement, said the new labour codes led it to recognise a one-time exceptional charge of ₹88.48 crore. The charge relates mainly to additional provisions for gratuity and compensated absences following changes in the definition of wages.

Earnings before interest, tax, depreciation, and amortization (Ebitda) for the quarter were ₹4,051 crore compared to ₹3,142 crore in Q3FY26. However, higher power and fuel costs as well as freight expenses continued to weigh on overall expenses during the quarter.

UltraTech reported strong performance driven by robust volume growth and effective cost control, exceeding street expectations and supporting healthy earnings. Looking ahead, management has guided for an improvement in Ebitda per tonne in the March quarter, led by better pricing and sustained volume momentum, according to Satyadeep Jain, lead analyst for cement, metals, mining and utilities at Ambit Capital.