UltraTech Cement Performance Analyzed

Key Points

• Strong profit growth: Net profit jumped 75% year-on-year.
• Revenue increased 20.3% compared to last year.
• Grey cement sales grew by 7.1% in volume.
• Operating profit per tonne rose significantly to ₹966.
• Major investment planned: ₹10,255 crore expansion.
• Total capacity expected to reach 200 mtpa by 2027-28.

UltraTech Cement Q2FY26 Results Summary

UltraTech Cement announced its Q2FY26 results on October 18, 2025, showing significant growth. The company reported a substantial increase in net profit, driven by higher revenue and improved operational efficiency. This positive performance is attracting mixed reactions from analysts, leading to some price adjustments.

The company’s net profit soared by 75.2% compared to the previous year, reaching ₹1,231.58 crore. This growth was fueled by a 20.3% increase in revenue, which rose to ₹19,606.93 crore. Key factors driving this growth include increased sales of grey cement (up 7.1%) and higher prices for cement (realisations improved 4.5%).

UltraTech is investing heavily to expand its capacity. The company unveiled a plan to invest ₹10,255 crore to increase cement production by 22.8 million tonnes per annum. This expansion, primarily through its subsidiary India Cements, will bring the company’s total capacity to 240.76 million tonnes globally by 2027-28. The company aims to have a total capacity of 200 million tonnes by the end of fiscal year 2026.

Several analysts have weighed in on UltraTech’s performance. Nuvama Institutional Equities maintains a ‘Hold’ rating and raised the target price to ₹13,982, citing robust growth plans and a positive price outlook. Emkay Global Financial, conversely, cut its target by 5% to ₹14,000, while Centrum Broking decreased its target to ₹13,678, both maintaining a ‘Buy’ call. These changes reflect differing assessments of future costs and demand.

Despite rising petcoke prices, the company expects to mitigate costs through increased coal usage and the removal of a coal compensation cess. Analysts anticipate a recovery in cement demand in the second half of fiscal year 2026, supported by the company’s expanding capacity.

“Strategic capacity additions and cost management strategies are vital for UltraTech’s continued success.”