UltraTech Cement Limited (ULTRACEMCO)
🎯 Key Takeaways
- UltraTech Cement is in a high-growth phase driven by capacity expansion, integration benefits, and green energy transition. Management is aggressively scaling capacity to 242 million tons by FY27, with record volume growth and strong brand performance post-integration.
- Revenue grew 11.3% QoQ to ₹21,830 in Q3FY26.
- ⚠️ Fuel cost inflation is projected to rise by INR 130–140/ton in Q3 FY27, directly pressuring margins despite volume growth.
📖 The Story
UltraTech Cement is in a high-growth phase driven by capacity expansion, integration benefits, and green energy transition. Management is aggressively scaling capacity to 242 million tons by FY27, with record volume growth and strong brand performance post-integration. Despite near-term margin pressures from fuel costs, the company is leveraging infrastructure demand and renewable energy adoption to sustain double-digit volume growth, positioning itself as a structural beneficiary in India's cement sector.
📰 What's Happening
In Q1 FY27, UltraTech reported record revenue of INR 5,146 crores and PAT of INR 2,604 crores, driven by 13.1% volume growth and 81% capacity utilization. Brand growth surged 21.3% post India Cements integration, while renewable energy usage reached 47%. The company achieved its 240 million ton capacity target ahead of schedule and plans INR 17,000 crores of capex to expand to 242 million tons by FY27. Management highlighted strong demand in Maharashtra, Odisha, and Tamil Nadu, though fuel costs rose 5% to INR 915/ton. A 26% stake in Solaris Horizon Energy was acquired to develop a 65 MW solar project for captive power, reducing long-term energy costs. Additionally, Rs. 5,000 crores of non-convertible debentures were issued in tranches to fund strategic initiatives.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 20,419 | 18,070 | 15,635 | 17,193 | 23,063 | 21,275 | 19,607 | 21,830 |
| Operating Profit | 4,178 | 3,238 | 2,239 | 3,131 | 4,711 | 4,552 | 3,268 | 3,962 |
| OPM % | 20.1% | 16.8% | 12.9% | 16.8% | 20.0% | 20.7% | 15.8% | 17.9% |
| Net Profit | 2,259 | 1,695 | 825 | 1,474 | 2,475 | 2,221 | 1,238 | 1,729 |
| EPS | ₹78.35 | ₹58.87 | ₹28.45 | ₹50.99 | ₹84.38 | ₹75.67 | ₹41.87 | ₹58.66 |
Financial performance shows strong top-line momentum with Q1 FY27 revenue at INR 5,146 crores, up from INR 23,063 crores in Q4 FY25, reflecting robust volume growth and integration benefits. PAT of INR 2,604 crores in Q1 FY27 marks a 17.2% YoY increase, supported by high capacity utilization (81%) and brand expansion. However, OPM declined to 17.9% in Q3FY26 from 20.7% in Q1FY26, indicating margin pressure despite revenue growth. This aligns with management's warning on rising fuel costs, which are projected to increase by INR 130–140/ton in Q3 FY27. The company is reinvesting heavily, with capex at INR 17,000 crores, prioritizing capacity and green energy over short-term profitability.
🔮 Management Outlook & What's Next
Management projects double-digit volume growth for FY27 amid industry growth estimates of 7-8%, with pricing targets of INR 1,400/ton on track for Q1 2028. Fuel costs are expected to rise further, but green power adoption aims to reach 86% by FY28. The 240 million ton capacity target has been achieved early, and capex of INR 17,000 crores is underway to reach 242 million tons. The acquisition of Solaris Horizon Energy supports long-term energy cost reduction and sustainability goals, with integration expected to enhance operational resilience.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | 2023-2024 | 2023-2024 | 2024-2025 | 2024-2025 | 2025-2026 |
|---|---|---|---|---|---|
| Equity Capital | 289 | 289 | 289 | 295 | 295 |
| Reserves | 55,858 | 59,939 | 61,076 | 70,412 | 71,738 |
| Borrowings | 10,319 | 10,298 | 15,922 | 23,031 | 24,246 |
| Total Liabilities | 37,788 | 40,519 | 44,841 | 59,804 | 61,338 |
| Fixed Assets | 47,727 | 50,126 | 54,567 | 76,015 | 77,472 |
| Investments | 5,435 | 7,280 | 7,465 | 4,856 | 4,824 |
| Total Assets | 93,991 | 1.01 L Cr | 1.08 L Cr | 1.34 L Cr | 1.37 L Cr |
The balance sheet reflects a disciplined capital structure with total assets growing to INR 1.37 L Cr in 2025-26 from INR 1.08 L Cr in 2024-25, driven by expansion. Borrowings increased to INR 24,246 crores from INR 15,922 crores, but net debt/EBITDA improved to 0.87x, indicating better leverage management. Equity and reserves rose to INR 72,033 crores, supporting growth without diluting equity. The company is using debt efficiently to fund capex, with a clear focus on maintaining investment-grade metrics despite aggressive expansion.
💰 Cash Flow Statement (₹ Cr)
| Item | 2020-2021 |
|---|---|
| Operating | +12,506 |
| Investing | -8,119 |
| Financing | -4,389 |
| Net Cash Flow | — |
⚖️ Peer Comparison — Cement & Cement Products
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| UltraTech Cement Limited | 3.38 L Cr | 44.1 | 12.3% | 10.8% | 0.33 |
| Grasim Industries Limited | 2.00 L Cr | 21.1 | 4.9% | 4.6% | 1.88 |
| Ambuja Cements Limited | 1.07 L Cr | 23.3 | 4.6% | 7.7% | 0.00 |
| SHREE CEMENT LIMITED | 90,094 | 73.6 | — | — | — |
| JK Cement Limited | 42,219 | 58.6 | — | — | — |
| Dalmia Bharat Limited | 32,402 | 57.5 | — | — | — |
| ACC Limited | 25,592 | 12.0 | 11.0% | 10.4% | 0.00 |
| The Ramco Cements Limited | 21,650 | 57.2 | — | — | — |
| JSW Cement Limited | 16,793 | 0.0 | — | — | — |
| The India Cements Limited | 12,401 | -56.7 | — | — | — |
⚠️ Risk Factors
1. Fuel cost inflation is projected to rise by INR 130–140/ton in Q3 FY27, directly pressuring margins despite volume growth. 2. Regional demand variability in East India and monsoon volatility could disrupt growth momentum in key markets. 3. Integration risks from India Cements and Solaris Horizon Energy may delay synergies or increase costs. 4. Market volatility from unexplained stock movements, though currently deemed noise, could affect investor sentiment if fundamentals weaken.
📋 Recent Filings
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🔴 Announcement 12 August 2026UltraTech Cement announced it will acquire a 26% stake in Solaris Horizon Energy Private Limited, a special purpose vehicle developing a 65 MW solar p...
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🔴 Announcement 11 August 2026UltraTech Cement clarified that a material price movement in its stock on August 11, 2026, was purely market-driven with no news or event triggering i...
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🔴 Corporate Action 3 August 2026UltraTech Cement announced the allotment of 5,00,000 fully paid non-convertible debentures of Rs.1,00,000 each, aggregating to Rs. 5,000 crores, on a ...
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🟡 Board Meeting 25 July 2026UltraTech Cement announced that its Integrated and Sustainability Report 2025-26 is now accessible via the company website, and shareholders without r...
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🔴 Announcement 24 July 2026UltraTech Cement secured CARE AAA stable ratings for its non-convertible debentures and bank facilities, reflecting its dominant market position with ...
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Announcement 24 July 2026No summary available
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🔴 Corporate Action 24 July 2026UltraTech Cement announced that its Annual General Meeting will be held on 17 August 2026 via video conference, with the record date set for 30 July 2...
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🟡 Board Meeting 23 July 2026UltraTech Cement announced that its Finance Committee approved issuing up to 500,000 non-convertible debentures worth Rs 1,00,000 each, aggregating to...
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🔴 Announcement 23 July 2026UltraTech Cement secured a Crisil AAA/Stable rating for its Rs 2,000 crore non-convertible debentures, reaffirming its strong market position and prof...
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Financial Results 23 July 2026UltraTech Cement reported record Q1 FY27 revenue of INR 5,146 crores and PAT of INR 2,604 crores, driven by 13.1% volume growth and 81% capacity utili...
🧠 Analyst's Read
UltraTech Cement is executing a clear growth strategy with strong operational momentum, but near-term margin expansion faces headwinds from fuel costs. The company's scale, green energy transition, and capacity leadership provide long-term structural advantages, though execution risks remain. Investors should monitor volume trends, fuel cost trajectory, and progress on renewable energy targets to assess sustainability of performance.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.
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This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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