UltraTech Cement Limited — Q1 FY27 earnings call

Call held 20 Jul 2026

Management summary

UltraTech Cement reported its best-ever Q1 performance in FY27, driven by robust 13.1% domestic volume growth and strong capacity utilization of 81%. The company successfully integrated acquired brands and expanded capacity, while managing cost pressures from the West Asia conflict. Management expressed confidence in continued demand and profitability, with significant capex plans underway.

Highlights

  • Domestic grey cement volumes grew 13.1% YoY, translating into market share gains, with capacity utilization at 81% in Q1 FY27.

  • Reported highest ever Q1 performance across volumes, revenues, EBITDA (INR 5,146 crores), and PAT (INR 2,604 crores), with PAT up 17.2% YoY.

  • Revenues grew 16% and EBITDA rose 12% YoY, maintaining operating EBITDA per ton steady above INR 1,200 despite cost pressures.

  • Successfully completed brand migration of Kesoram and India Cements to UltraTech, with the UltraTech brand growing 21.3% YoY.

  • Net debt to EBITDA improved to 0.87x from 0.94x, with a target to remain below 1x for the year.

Concerns

  • Fuel costs increased, with the fuel cost component rising 5% from INR 874 to INR 915 per ton, and overall costs expected to rise by INR 130-140 per ton in Q2 FY27.

  • West Asia conflict caused disruptive supply cycles and uncertainty in global energy markets, impacting costs.

  • Monsoon season is expected to bring a seasonal slowdown and further cost pressures, though prices are expected to hold steady.

Key financials

  1. Domestic Volume Growth 13.1% +13.1%YoY
  2. Capacity Utilization 81%
  3. EBITDA ₹5,146 Cr +12%YoY
  4. PAT ₹2,604 Cr +17.2%YoY
  5. Revenue Growth 16% +16%YoY
  6. Operating EBITDA per ton ₹1,200
  7. Fuel Cost per ton ₹915 +5%QoQ

What they filed

Q1 FY27: revenue up 15.9%, net profit up 17.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue16,294 17,779 23,063 21,275 19,607 +20%21,830 +23%25,799 +12%24,648 +16%
EBITDA2,026 2,893 4,608 4,406 3,089 +52%3,911 +35%5,599 +22%5,015 +14%
Net profit708 1,363 2,475 2,221 1,238 +75%1,729 +27%3,000 +21%2,604 +17%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹17,000 Cr All growth capexes and cost improvement initiatives are funded with internal accruals.
    • Capacity growth projects ₹17,000 Cr
    • Green power (renewable and WHRS)
    • India Cements improvement capex (WHRS, preheater/cooler upgradation) ₹2,000 Cr
    • Cables and Wires project ₹1,800 Cr
    All these growth capexes, the cost improvement initiatives are all being funded with internal accruals.
  • Debt 0.9× EBITDA
    We had started the year with a net debt EBITDA of 0.94 and the quarter, we have ended with 0.87x net debt to EBITDA.
  • M&A India Cements Acquisition · Integrated

    Turnaround of sound assets in strong markets, held back by underinvestment and subscale operating discipline.

    Revenues grew 21% and volumes grew 19% on a like-for-like basis. EBITDA per ton climbed from INR 386 (Q2 FY26) to INR 603 (Q1 FY27). Brand migration to UltraTech is 100% complete.

    I'm very proud to tell you, we have converted the Kesoram and India Cements brands to 100% UltraTech... In fact, if you look at the brand growth, the brand has grown 21.3% over the same period last year... India Cements' EBITDA per ton has climbed from roughly INR386 per ton in Q2FY26 to INR400 to INR509 and INR603 this quarter.

Guidance & targets

Capacity

  • Grey Cement Capacity Capacity · end of fiscal '27 · High confidence 212.7 million tons
    We'll take our consolidated capacity beyond 242 million tons with grey cement capacity to reach 212.7 million tons by the end of fiscal '27 and further balance to be completed in the next year.

    — Atul Daga

  • Consolidated Capacity Capacity · next year · High confidence beyond 242 million tons

    — Atul Daga

  • Total Capacity in India Capacity · March '28 · High confidence 235 million tons
    So, this I think we'll have to work out and give it to you, but March '28 we should exit with 235 million tons in India.

    — Atul Daga

Green Power

  • Renewable Green Power Capacity Green Power · very shortly · Medium confidence 2.5 to 3 gigawatts
    We believe we will reach anywhere between 2.5 to 3 gigawatts very shortly.

    — Atul Daga

Debt

  • Net Debt to EBITDA Debt · FY27 · High confidence below 1x
    Our belief is, and we are confident that this year also, we'll end the net debt to EBITDA below 1x.

    — Atul Daga

Profitability

  • India Cements EBITDA per ton Profitability · Q4 fiscal '28 · Medium confidence INR 1,000 per ton
    EBITDA of INR1,000 per ton for India Cements remains very much in sight with the full benefit of the capex program flowing through the P&L from Q4 fiscal '28.

    — Atul Daga

New Business

  • Cables and Wires Product Launch New Business · Q3 fiscal '27 (October - December '26) · High confidence commissioning and product launch
    We reaffirm commissioning and product launch in Q3 fiscal '27, October - December '26 quarter, precisely as committed to you when we announced this investment.

    — Atul Daga

Working Capital

  • Cables and Wires Working Capital Days Working Capital · after next six months · Medium confidence 30 days plus-minus
    So, excuse me for having a higher working capital for the next six months after which we start stabilizing and coming down to 30 days plus-minus of working capital.

    — Atul Daga

Market context

  • Domestic Volume Growth Volume · FY27 · High confidence double-digit
    Yes, we are targeting double-digit volume growth this year.

    — Atul Daga

What to watch in Q2 FY27

Fuel prices normalization

near future
Current Sharpest imported fuel cost shock absorbed
Target Normalization of fuel prices

Why it matters

Normalization of fuel prices is expected to improve per ton EBITDA trajectory, as the company has absorbed significant cost shocks.

We hope that fuel prices will normalize in the near future.

Risks & concerns

  • Fuel cost volatility due to geopolitical events (West Asia conflict)

    high

    The West Asia conflict caused disruptive supply cycles, leading to sharp increases in imported fuel costs and industrial diesel prices, impacting overall costs.

    Management acknowledged

  • Monsoon season slowdown

    medium

    Seasonal monsoon slowdown is expected to weigh on the quarter, potentially impacting demand and volume growth, though prices are expected to hold steady.

    Management acknowledged

  • Demand slowdown

    low

    Management does not foresee a structural slowdown in demand, citing strong urbanization and infrastructure development, but acknowledges it would be the biggest challenge if it were to occur.

    Management downplayed

Q&A highlights

7 direct
Capital allocation for growing cash flow Direct
Amit, as of now, we are fully booked in terms of our cash flows. All the operating cash flows will get ploughed back into growth. And beyond that, also, there is dividends for shareholders. As of now, I don't foresee any requirement for further investment in cables and wires.

Clarifies the company's capital allocation strategy, prioritizing growth and shareholder returns, with no immediate plans for further investment in the new Cables & Wires business.

Asked by Amit Murarka

India Cements integration and potential merger Partial
There is a capex program underway, which we mentioned has to get completed. There are some non-core assets in terms of land, which we need to dispose of. So Q4 '28 or maybe a quarter earlier, we expect to complete our journey.

Provides a timeline for the completion of India Cements integration and asset rationalization, indicating a potential full integration or merger after Q4 FY28.

Asked by Amit Murarka

UltraTech's outperformance in volume and pricing Direct
I think UltraTech is a brand that customers trust. Decades of consistent delivery, bag after bag, site after site, which has made UltraTech synonymous with reliability. Quality that we swear by.

Management attributes outperformance to strong brand trust, consistent quality, extensive distribution network, and ethical conduct, highlighting the company's competitive advantages.

Asked by Rahul Gupta

Cost impact from West Asia crisis and Q2 outlook Direct
I would expect the cost to go up by INR130 to INR140 per ton, all put together. I can't associate one line item with war and other with something else. But all put together, we should be going up around INR130, INR140 per ton.

Provides specific guidance on the expected cost increase per ton for Q2 FY27, attributing it to a combination of fuel costs, packing bags, and maintenance, influenced by the West Asia crisis.

Asked by Rahul Gupta

Spiking limestone raising costs Direct
industrial diesel went up almost 50% from INR100 per liter to INR157... So again, it's an upward movement. So, this diesel is a very big component and limestone raising cost, which impacted our raw material costs.

Explains the reason for the significant increase in limestone raising costs, linking it directly to the sharp rise in industrial diesel prices due to the West Asia conflict.

Asked by Siddharth Mehrotra

Brand power vs. commodity play in Indian cement market Direct
As long as India is an individual homebuilder market, it's a retail market, and that's where the retail markets bring the requirement of brand. Very unique market in India, not just cement, steel is also branded... As long as India is still very in its nascent stages in RMC, India will remain a branded cement player.

Management emphasizes the enduring importance of brand power in the Indian cement market, driven by the prevalence of individual homebuilders and the nascent stage of RMC adoption, distinguishing it from commodity markets.

Asked by Raghav Maheshwari

Post-FY28 organic/inorganic expansion plans Direct
So inorganic, obviously, if there are opportunities, we will examine them. And our team has already got on to the drawing board to take us beyond 240. Once the plans are ready, we will come back with absolute micro details.

Indicates the company's strategic intent for future capacity expansion beyond the current 240 MT target, with a focus on inorganic opportunities and detailed planning underway.

Asked by Raashi

River linking cement intensity Direct
Well, I don't have a comparison with hydropower plants, but river banks have to be done. Silting has to be done. And I don't know whether dams are required or not required, but river banks have to be built, which is concrete... So, we expect it to be very cement happy situation.

Management confirms that river linking projects, like Ken-Betwa, are highly cement-intensive due to the need for concrete structures in river banks and associated infrastructure.

Asked by Pulkit Patni

3 min read 7 chapters

Detailed narrative

Q1 FY27 Performance Overview

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 Drivers and Market Outlook

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.

Capacity Expansion and Green Initiatives

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.

India Cements Integration Progress

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.

Cost Dynamics and Fuel Volatility

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.

Cables & Wires Business Update

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.

Brand Strength and Market Leadership

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.

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