UltraTech Cement Q1 profit rises 16.8% as volumes and revenue gain
UltraTech Cement reported Q1FY27 net profit of ₹2,599.3 crore, up 16.8% year-on-year, while revenue rose 15.9% to ₹24,648.2 crore. Consolidated sales volume increased 12.2% to 41.31 million tonnes; brokerages retained Buy calls on infrastructure and housing demand.
What happened
Aditya Birla Group’s UltraTech Cement reported in-line Q1FY27 earnings, with profit rising 16.8% and revenue up 15.9% on higher volumes and realisations.
Key facts
- Q1FY27 net profit ₹2,599.3 crore, up 16.8% YoY
- Revenue ₹24,648.20 crore, up 15.9% YoY
- Consolidated sales volume 41.31 million tonnes, up 12.2% YoY
- EBITDA per tonne ₹1,214, up 1.33% YoY
- Nirmal Bang target price ₹13,662
- Motilal Oswal target price ₹13,800
- FY26-FY28 expected revenue CAGR 9%, EBITDA CAGR 14%, adjusted PAT CAGR 19%
Why this matters
Strong scale growth in a favorable demand cycle supports capacity expansion and consolidation opportunities, with cost synergies critical amid input-price pressure.
What to watch
- Monthly all-India and regional cement dispatch growth, especially post-monsoon recovery.
- Cement price trends and dealer channel inventory in key markets such as South, West and Central India.
- EBITDA per tonne, fuel-cost movement, freight costs and the pace of green-power substitution.
- Government infrastructure tender execution, road construction, rail, metro and housing project activity rather than just budget announcements.
- Capacity additions by UltraTech and competitors, and whether incremental supply causes regional oversupply.
- Monsoon intensity, rural construction demand and real-estate launches in major urban markets.
- Management commentary on FY27 volume guidance, pricing outlook, capex and deleveraging/cash-flow priorities.
- Accelerate capacity commissioning and grinding-unit utilization in high-demand infrastructure and housing corridors.
- Use scale, dealer reach and logistics integration to capture share from smaller regional producers during periods of price competition.
- Prioritize premium cement, ready-mix concrete and building-solutions sales to improve mix and reduce dependence on commodity cement realizations.
- Maintain selective price increases after monsoon demand normalizes, provided industry-wide dispatch growth stays firm.
- Potentially raise sector earnings estimates for large, efficient cement producers while differentiating against highly leveraged or regionally concentrated peers.