UltraTech Cement Limited

UltraTech Cement reported its highest ever Q1 performance across volumes, revenues, EBITDA, and PAT. Domestic grey cement volumes grew 13.1% YoY, leading to market share gains, with capacity utilization reaching 81%. EBITDA stood at INR 5,146 crores and PAT at INR 2,604 crores, representing a 17.2% YoY increase. Revenues grew 16% YoY, and operating EBITDA per ton remained steady above INR 1,200.

Demand pipeline remains strong across infrastructure, housing, and urban real estate. Key projects include a INR 20,000 crores greenfield shipbuilding cluster in Maharashtra, a INR 50,000 crores shipbuilding cluster in Odisha, and INR 18,000 crores MoU for data centers in Tamil Nadu. Housing and urban real estate, contributing 55-60% of cement consumption, saw strong growth in Q1 FY26, with property registrations up 6% in Mumbai and significant unit sales across top 8 cities. The company expects prices to hold steady through the monsoon quarter due to cost increases.

UltraTech commissioned 8.7 million tons of new capacity in Q1 FY27, increasing domestic capacity to 200.1 million tons. The company aims to reach 212.7 million tons of grey cement capacity by the end of FY27 and consolidated capacity beyond 242 million tons. Projects worth INR 17,000 crores are under execution for capacity growth over the next 2-2.5 years. Green power capacity now stands at 1,897 MW, meeting 47% of total power requirements, with a target to reach 2.5-3 GW very shortly. All capex is funded through internal accruals.

The integration of India Cements and Kesoram brands into UltraTech is 100% complete, resulting in a 21.3% growth in the UltraTech brand. India Cements' revenues grew 21% and volumes 19% on a like-for-like basis in Q1 FY27, with EBITDA per ton climbing sequentially from INR 386 (Q2 FY26) to INR 603. The company is deploying INR 2,000 crores in capex for waste heat recovery, preheater, and cooler upgradation at India Cements, targeting INR 1,000 EBITDA per ton by Q4 FY28.

The company absorbed the sharpest imported fuel cost shock, with fuel costs increasing 5% from INR 874 to INR 915 per ton. Overall costs are expected to rise by INR 130-140 per ton in Q2 FY27 due to fuel, packing bags, and maintenance. The increase in limestone raising costs was attributed to a 50% surge in industrial diesel prices. Management expects fuel prices to normalize in the near future, which will positively impact per ton EBITDA.

The new Cables and Wires business, with an investment of INR 1,800 crores (INR 888 crores spent/committed), is on schedule and budget. Trial runs have commenced, and key regulatory approvals are in place. The company reaffirms commissioning and product launch in Q3 fiscal '27 (October-December 2026). Working capital for this business is expected to stabilize at 30 days plus-minus after the initial six months of ramp-up.

UltraTech attributes its consistent outperformance in volumes and pricing to its strong brand, which customers trust for reliability and quality. The company's extensive network of 76 operating facilities, 2,000+ warehouses, 150,000 channel partners, and dedicated transporters contribute to its market leadership. Management emphasized that India remains a branded cement market due to the prevalence of individual homebuilders and the nascent stage of RMC adoption.