Ultratech Cement shares rise 3% on strong Q3 results. Should you buy, sell or hold?

UltraTech Cement share price rose as much as 3.7% to ₹12,829 apiece in Tuesday's trading session after the company reported stronger-than-expected earnings for the December quarter of fiscal year 2025-26 (Q3 FY26).

Today's rise has driven UltraTech Cement shares over 8% higher in a month. The cement manufacturer's stock has given multibagger returns of over 139% in five years and 4,756.43% since its listing.

UltraTech Cement Q3 results 2025

India’s biggest cement producer, UltraTech Cement, posted strong growth in the net profit for the December quarter, surpassing analyst expectations amid robust cement sales.

According to exchange filings, the Aditya Birla Group company reported a 27% year-on-year (YoY) jump in consolidated net profit to ₹1,725.40 crore.

The Mumbai-based cement major reported a 23% YoY increase in revenue from operations to ₹21,829.68 crore for the quarter, up from ₹17,778.83 crore in the same period last year, driven by higher sales volumes and contributions from acquired entities. Consolidated sales volumes rose 15% year-on-year to 38.87 million tonnes per annum.

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

Including other income, UltraTech’s total consolidated income for the December quarter stood at ₹21,965.26 crore. Sales volumes increased 15% to 33.85 million tonnes, while domestic grey cement production grew 15.4% to 36.37 million tonnes during the quarter.

Daga further added, “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.”

UltraTech Cement stock: Should you buy, sell or hold?

Brokerage firm Choice Broking has maintained its ‘buy’ rating on the UltraTech Cement stock, with a target price of ₹15,210, suggesting an upside potential of up to 23%.

“We maintain our BUY rating and TP of INR 15,210 on Ultratech Cement Ltd. (UTCEM) as our core investment thesis remains unchanged. We continue to be positive on UTCEM owing to: 1) Ambitious and continuous capacity expansion plan to add ~8 Mnt of capacity in Q4FY26 and 12 Mnt of capacity in FY27E, 2) Funding expansion outlay largely via internal accruals, 3) Proactive cost-optimisation strategy, 4) Favourable sectoral pricing environment and 5) Significant demand growth is expected from the southern market. Our EV to CE (Enterprise Value to Capital Employed)-based framework allows us a rational basis to assign a valuation multiple which captures improving fundamentals (ROCE expansion by 726 bps over FY25–28E),” the firm said in a note.

Meanwhile, brokerage firm JM Financial has also maintained its ‘buy’ rating on the stock with revised target price of ₹14,500, saying that the company reported a strong 3QFY26 earnings performance with consolidated EBITDA rising 35% YoY/27% QoQ to ₹39.2 billion, beating estimates by 8–13% primarily due to lower-than-estimated cost/tn.

“We argue UltraTech is poised for structural improvement in return ratios over the next three–four years owing to: i) rising asset turnover; ii) low cost of expansion; and iii) improving profitability. Factoring in the 3Q performance and improving demand/pricing, we are increasing EBITDA by 6% for FY26E and 1–3% for FY27E–28E. Maintain BUY with a revised TP of INR 14,500 based on 19x Mar’28E EV/E. UltraTech remains our top pick in the sector,” said the firm.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.