UltraTech Cement Q2 Profit Soars 75% to Rs 1,232 Crore
UltraTech Cement, India’s market leader, reported a stellar 75% year-on-year jump in net profit to Rs 1,232 crore for the September quarter, driven by strong sales growth and reduced energy costs.
Key Takeaways
- Net profit surged 75% YoY to Rs 1,232 crore
- Revenue grew 21.32% to Rs 19,371 crore
- EBITDA jumped 45% to Rs 3,268 crore
- Sales volumes increased 6.9% to 33.85 million metric tonne
Financial Performance Highlights
The company’s revenue for Q2FY26 stood at Rs 19,371 crore, marking a robust 21.32% increase compared to the same period last year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) showed impressive growth of 45% annually, reaching Rs 3,268 crore.
Operating EBITDA per metric tonne improved significantly to Rs 1,248/Mt, up by Rs 337/Mt year-on-year. Consolidated sales volumes reached 33.85 million metric tonne, representing 6.9% growth.
Acquisition Performance
UltraTech reported strong performance from its recent acquisitions. The company achieved 22.3% growth in domestic grey cement, excluding India Cements and Kesoram volumes from the previous year comparison.
“The acquired assets of India Cements and Kesoram have generated an operating EBITDA of `386 per ton and `755 per ton respectively. Both the acquisitions are rapidly improving with 55% of Kesoram volumes and 31% of India Cements volumes already transitioned to the power of UltraTech brand,” the firm said in its earnings statement.
Cost Management & Realisations
The company demonstrated effective cost control with grey cement fuel and power costs declining by 6% and 8% respectively year-on-year. Fuel cost stood at Rs 893 per metric tonne while power cost was Rs 372 per metric tonne.
Sales realisation improved to Rs 5,088 per metric tonne, up 4.5% annually, though it declined 1.4% sequentially from the previous quarter.
Capacity Expansion Plans
UltraTech’s current domestic grey cement capacity stands at 186.86 MTPA, with global capacity reaching 192.26 MTPA including overseas operations. The company has ambitious expansion targets, aiming to add 14.1 MTPA capacity in FY26 and reach 212.2 MTPA domestic capacity by FY27 end.
In a significant move, the company announced its next phase of capacity expansion starting FY28 with an investment of Rs 10,255 crore. This will increase capacity by 22.8 MTPA, taking the total to 240.8 MTPA by FY28 end.
“This latest capacity expansion follows more than Rs 50,000 crores invested over the past five years, underscoring deep and sustained confidence in the Indian economy and the scale of its infrastructure ambitions. Capital, when deployed strategically, has a catalytic effect,” Kumar Mangalam Birla, chairman, Aditya Birla Group said.
The massive investment plans reflect UltraTech’s strong confidence in India’s infrastructure growth story and cement demand outlook.
