UltraTech Cement (ULTRACEMCO) Q1 25/26 earnings summary

Executive summary

• Consolidated revenues grew 13% year-over-year in Q1 FY26 to ₹21,040 crore, with 9.7% volume growth driven by acquisitions, organic expansion, and steady demand from government CAPEX and infrastructure projects.

• Profit after tax increased 49% year-over-year to ₹2,226 crore, and EBITDA rose 44% to ₹4,591 crore, reflecting operational efficiencies and cost control.

• Integration of The India Cements Limited and Kesoram Industries is progressing, contributing to improved performance, capacity, and efficiency.

• Urban housing showed signs of a future rebound, while rural and commercial segments performed well despite unseasonal rains and labor shortages.

• Green power mix reached 39.5%, and premium product mix rose 41% year-over-year, supporting sustainability and margin improvement.

Financial highlights

• Consolidated revenue from operations for Q1FY26 was ₹21,275 crore, up from ₹18,819 crore in Q1FY25; grey cement domestic revenue grew 11.4% year-over-year to ₹17,856 crore.

• Net profit attributable to owners was ₹2,220.91 crore, up from ₹1,493.45 crore year-over-year; basic EPS was ₹75.67 for Q1FY26.

• Realization per ton for UltraTech brand increased 2.2% sequentially and 2.4% year-over-year; building products revenue for Q1 last year was approximately INR 185 crore, rising to ₹225 crore this year.

• Overseas revenue increased 56.4% year-over-year to ₹941 crore; RMC revenue up 23% to ₹1,826 crore.

• Logistics, fuel, and power costs declined 4%, 14%, and 8% year-over-year, respectively, driving margin expansion.

Outlook and guidance

• Double-digit volume growth targeted for fiscal 2026, with new capacities being commissioned and further expansions planned, targeting 217.6 mtpa by FY27.

• The India Cements aims for EBITDA per ton in excess of INR 1,000 by fiscal 2028, driven by integration and CAPEX; efficiency gains from India Cements capex to start reflecting from Q4 FY27.

• Further brownfield and greenfield expansion phases are being prepared, with announcements expected before the end of the financial year.

• Cement demand expected to recover in FY26 with 7-8% growth, supported by RBI rate cuts, low inflation, and government focus on rural/agricultural development.

• Ongoing capex and debottlenecking initiatives are expected to further enhance capacity and operational efficiency.