The India Cements Q2 FY27: PAT ₹2,604 Cr & Rev ₹5,146 Cr

Investor Takeaways

Reported net profit of ₹2,604 crores, up 17.2% YoY, driven by volume growth and improved margins.

EBITDA rose 12% YoY to ₹5,146 crores, with EBITDA per ton increasing to [amount not verified]- Volume growth of 19% YoY achieved, with capacity utilization at 81%.

Net debt/EBITDA improved to 0.87x from 0.94 at year start.

Capex plan advanced to ₹17,000 crores for expansion to 235 million tons by March 2028.

Green power adoption reached 86% of requirements, targeting 100% by FY28.

Overall Tone: Positive

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹5,146 Cr	19%
Net Profit	₹2,604 Cr	17.2%
EBITDA	₹5,146 Cr	12%
EPS	[amount not verified]	17.2%
OPM	50.6%	17.2%

Note: OPM calculated as (Net Profit / Revenue) = (2604 / 5146) = 50.6%

What Changed

The filing reveals significant operational and financial progress in Q1 FY27. Net profit increased by 17.2% YoY to ₹2,604 crores, driven by 19% volume growth and improved margins, with EBITDA rising 12% to ₹5,146 crores and EBITDA per ton reaching [amount not verified]Capacity utilization improved to 81%, supporting operational efficiency. The company advanced its ₹17,000 crores capex plan to expand capacity to 235 million tons by March 2028, targeting ₹1,400/ton EBITDA by Q1 2028. Net debt/EBITDA improved to 0.87x from 0.94 at the start of the fiscal year, enhancing financial resilience. Volume growth was led by Eastern India, supported by urbanization (35% current, projected 39% by 2030) and infrastructure investments. Brand conversion to UltraTech is complete, enabling pricing power in a competitive retail market. Management expects double-digit volume growth in FY27 despite cost pressures from diesel inflation (INR130-140 per ton in Q2 FY27), with cost inflation expected to ease in H2 2026. Green power adoption reached 86% of requirements, targeting 100% by FY28. The company reaffirmed confidence in long-term demand driven by urbanization and infrastructure spending, with structural growth underpinned by capacity expansion and brand strength.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
UltraTech Cement	44.08	10.84%	12.31%	3,38,497.96
Grasim Industries	21.08	4.62%	4.86%	1,99,652.33
Ambuja Cements	23.34	7.73%	4.61%	1,07,215.34

UltraTech Cement demonstrates stronger profitability metrics (ROE and ROCE) and a significantly higher market capitalization compared to peers, reflecting its dominant position in the sector.

Risks & Concerns

No specific risks identified in this filing beyond cost pressures from diesel inflation and geopolitical factors, which management expects to ease in H2 2026.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	940.81	122.3	-20.2%
Q2FY25	1,031.8	-339.13	-15.77%
Q1FY25	1,026.76	58.47	-2.4%
Q4FY24	1,266.65	-60.55	2.97%

Note: The provided quarterly trend data is from FY25, but the current filing reports Q1 FY27 results. The trend shows improving profitability from negative to positive, with Q1 FY27 (₹2,604 Cr net profit) significantly outperforming the prior year's Q1 FY25 (₹58.47 Cr).

Key Takeaways

UltraTech Cement is executing its capacity expansion plan (235 million tons by March 2028) with ₹17,000 crores capex, targeting ₹1,400/ton EBITDA by Q1 2028.

Volume growth of 19% YoY and 81% capacity utilization indicate strong demand execution.

Net debt/EBITDA improved to 0.87x, supporting financial stability.

Green power adoption at 86% (target 100% by FY28) aligns with sustainability goals.

Management expects double-digit volume growth in FY27 despite near-term cost pressures, with cost inflation of INR130-140/ton in Q2 FY27 expected to ease.

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