UltraTech Cement reported a 21.3% year-on-year increase in consolidated net profit attributable to the parent to ₹1,493.8 crore for the second quarter of FY27, supported by stronger cement sales volumes and higher revenue. Revenue from operations rose 18.8% to ₹23,295.1 crore in the quarter ended September 30, 2026, compared with approximately ₹19,606.9 crore in the corresponding period last year. The results reflect continued demand for cement in India and improved utilisation of the company’s manufacturing capacity.
However, the profit increase came amid higher raw-material, fuel and packaging costs, which continue to influence profitability across the cement industry. UltraTech’s operating EBITDA increased 20.3% to ₹3,721 crore, while operating EBITDA per tonne improved to ₹974. Although the company delivered double-digit growth across key financial measures, its reported net profit remained below analyst expectations. The company is also expanding its cement capacity and entering the cables and wires business as it seeks to broaden its presence in India’s building-materials market.
Key Takeaways
- Net profit: Rose 21.3% year-on-year to ₹1,493.8 crore.
- Revenue: Increased 18.8% to ₹23,295.1 crore.
- Operating EBITDA: Grew 20.3% to ₹3,721 crore.
- Domestic grey cement volumes: Increased 13.8% to 35.94 million tonnes.
- Capacity utilisation: Improved to 71% from 66% a year earlier.
- Operating EBITDA per tonne: Increased by ₹60 to ₹974.
- Cost pressures: Raw-material costs, fuel and packaging expenses remained elevated.
- Expansion plans: UltraTech is targeting global grey cement capacity of more than 240 million tonnes per annum by March 2028.
- New business: The company launched UltraVolt in the cables and wires segment during the quarter.
UltraTech Cement Q2 FY27 Results: Financial Performance
UltraTech’s second-quarter performance showed growth in revenue and earnings as cement volumes increased. The company’s consolidated revenue from operations reached ₹23,295.1 crore, while net profit attributable to the parent rose to ₹1,493.8 crore.
The distinction between revenue and net sales is relevant when comparing results from different reports. UltraTech’s official results presentation reported consolidated net sales of ₹23,024 crore, while revenue from operations was reported at ₹23,295.1 crore. The figures use different reported line items and should not be treated as interchangeable.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹23,295.1 crore | ₹19,606.9 crore | +18.8% |
| Net profit attributable to parent | ₹1,493.8 crore | ₹1,231.6 crore | +21.3% |
| Operating EBITDA | ₹3,721 crore | ₹3,092 crore approximately | +20.3% |
| EBITDA including other income | ₹3,832 crore | ₹3,268 crore | +17.3% |
| Domestic grey cement sales volume | 35.94 million tonnes | 31.58 million tonnes | +13.8% |
| Operating EBITDA per tonne | ₹974 | ₹914 | +₹60 |
Figures are rounded. Profit figures refer to consolidated net profit attributable to owners of the parent, while EBITDA figures follow the respective reported definitions.
The faster growth in net profit than revenue indicates that UltraTech converted a larger portion of its additional revenue into earnings attributable to shareholders. However, operating costs and the mix of products sold remain important factors in determining how much of this growth can be sustained.
Why Did UltraTech Cement’s Profit Increase?
Higher sales volumes were a major contributor to the quarterly performance. Domestic grey cement volumes rose 13.8% to 35.94 million tonnes, compared with 31.58 million tonnes in the year-ago quarter.
The increase reflects stronger demand and the company’s broader manufacturing and distribution footprint. Cement demand is closely connected to housing construction, infrastructure projects, commercial real estate and other building activity. Higher volumes allow manufacturers to spread fixed costs across more units, potentially improving operating efficiency.
UltraTech also reported that capacity utilisation increased to 71%, compared with 66% in the corresponding quarter last year. Better utilisation indicates that the company used a larger share of its available production capacity.
The company’s operating EBITDA per tonne rose from ₹914 to ₹974, an improvement of ₹60. This measure is important in cement manufacturing because it provides an indication of operating earnings generated from each tonne sold, although it does not represent net profit per tonne.
The improvement suggests that stronger volumes and operational efficiencies helped offset some of the increase in input costs.
Rising Raw-Material and Packaging Costs Remain a Concern
Despite the growth in revenue and earnings, UltraTech continues to face cost pressures. Raw-material costs increased 24% year-on-year, while total expenses rose 17.8%, according to Reuters’ reporting on the results.
Fuel is another important expense for cement manufacturers because producing clinker and cement requires substantial thermal energy and electricity. UltraTech reported that grey cement fuel costs increased 14% year-on-year to ₹1,030 per tonne.
Packaging costs rose 30% to ₹216 per tonne, while power costs declined 12% to ₹337 per tonne. These movements show that cost pressures were not uniform across all expense categories.
| Cost indicator | Q2 FY27 reported figure | Year-on-year trend |
|---|---|---|
| Grey cement fuel cost per tonne | ₹1,030 | +14% |
| Power cost per tonne | ₹337 | -12% |
| Packaging cost per tonne | ₹216 | +30% |
| Raw-material costs | — | +24% |
Reported cost figures and growth rates are based on available results coverage. Individual cost measures may use different calculation bases.
For cement manufacturers, the ability to pass higher expenses on to customers is crucial. Price increases can help protect margins, but the extent to which companies can raise prices depends on local demand, competitive intensity, freight costs and the supply available in each market.
Cement prices increased by approximately ₹6–₹7 per bag in the second half of September, according to industry reporting. Analysts have also anticipated further price increases after the festive season if construction demand strengthens.
If input costs remain elevated, UltraTech will need to balance pricing, operational efficiency and volume growth to protect profitability.
Capacity Expansion: Targeting More Than 240 Million Tonnes by 2028
UltraTech is continuing to expand its manufacturing network to meet anticipated demand for cement in India and overseas markets.
At the end of September 2026, the company’s domestic grey cement capacity stood at 204.7 million tonnes per annum (mtpa) on a consolidated basis. Including overseas capacity of 5.4 mtpa, global grey cement capacity reached 210.1 mtpa.
The company remains on track to expand global grey cement capacity to more than 240 mtpa by March 2028 under its organic capital expenditure programme.
During Q2 FY27, UltraTech commissioned 3.6 mtpa of new integrated capacity at Petnikota in Andhra Pradesh. It also added 1.0 mtpa through debottlenecking at existing plants in Visakhapatnam, Patratu and Nathdwara.
| Capacity indicator | Reported position |
|---|---|
| Domestic grey cement capacity | 204.7 mtpa |
| Overseas capacity | 5.4 mtpa |
| Global grey cement capacity | 210.1 mtpa |
| Global capacity target by March 2028 | More than 240 mtpa |
| Capacity added during Q2 FY27 | 4.6 mtpa |
For FY27, UltraTech plans to add 16.3 mtpa of capacity, including 9.3 mtpa through greenfield projects, with the balance from brownfield expansion. A further 29.8 mtpa of additions is planned for FY28.
The expansion programme could strengthen UltraTech’s ability to serve a growing market. However, new capacity also requires substantial capital expenditure and must eventually generate enough sales and operating earnings to justify the investment.
UltraTech Enters the Cables and Wires Market
UltraTech’s expansion beyond cement was another important development during the quarter. The company launched UltraVolt, its cables and wires brand, as part of a strategy to build a broader presence in the construction and building-solutions market.
The company has invested ₹1,100 crore in the new business so far, against an investment commitment of ₹1,800 crore announced when the initiative was unveiled.
UltraTech said its planned capacity would consume approximately 78,000 tonnes of copper and 24,000 tonnes of aluminium. It also said the planned capacity positioned it as the second-largest player by capacity in the housing-wires segment.
The business offers an opportunity to reach customers who already purchase construction-related products, potentially complementing the company’s established distribution network. Housing wires are used in residential construction and renovation, creating a connection with the broader building-materials market.
However, entering a new category also introduces new execution risks. UltraTech will need to establish distribution, manage copper and aluminium price volatility, maintain product quality and compete with established cables and wires manufacturers.
The company’s reported market response is an early indicator, but the long-term contribution of UltraVolt will depend on sales growth, capacity utilisation, profitability and the ability to build a durable brand.
What the Results Mean for UltraTech Investors
UltraTech’s quarterly results present a combination of strong volume growth, higher earnings and persistent input-cost pressure.
Revenue increased 18.8%, and net profit grew 21.3%. Domestic grey cement volumes rose 13.8%, while operating EBITDA per tonne improved. These indicators suggest that the company benefited from higher sales and better utilisation of its manufacturing capacity.
However, profit fell short of the Bloomberg consensus estimate of ₹1,604 crore. The reported earnings therefore need to be assessed against both the previous year’s performance and market expectations.
Investors will also need to consider the capital requirements associated with capacity expansion and the company’s new cables and wires business. Expansion can support long-term growth, but its financial benefit depends on the demand available when new capacity becomes operational and the cost of funding the investment.
The most important indicators to monitor over the coming quarters include cement volumes, realisations, fuel and raw-material costs, EBITDA per tonne, capacity utilisation and progress on planned capacity additions.
The Bigger Picture
UltraTech’s Q2 FY27 results reflect the underlying demand for cement in India’s construction and infrastructure markets. Higher sales volumes, better capacity utilisation and improved operating earnings helped the company report double-digit growth in revenue and profit, even as raw-material and packaging costs rose sharply.
The company is also investing in long-term capacity expansion and entering adjacent building-materials categories through UltraVolt. These initiatives could broaden its growth opportunities, but they also require capital and disciplined execution. Sustaining profitability will depend on the balance between demand, pricing, operating efficiency and the cost of expanding production.
Looking Ahead
UltraTech’s near-term performance will depend on whether cement demand remains strong after the festive season and whether manufacturers can pass on higher costs through pricing. The company’s target of exceeding 240 mtpa in global grey cement capacity by March 2028 places capacity expansion at the centre of its long-term strategy. Investors will also monitor the contribution of UltraVolt as the company expands beyond its core cement business.
For the next quarter, the key measures will be sales volumes, cement realisations, fuel and packaging expenses, and operating EBITDA per tonne. If demand strengthens and price increases offset input inflation, UltraTech may be able to protect margins. If costs rise faster than selling prices or new capacity takes time to generate demand, profitability could remain under pressure.
Frequently Asked Questions
1. What was UltraTech Cement’s Q2 FY27 net profit?
UltraTech Cement reported consolidated net profit attributable to the parent of ₹1,493.8 crore for the quarter ended September 30, 2026, up 21.3% year-on-year.
2. How much did UltraTech’s revenue increase?
Revenue from operations rose 18.8% year-on-year to ₹23,295.1 crore.
3. What drove UltraTech’s profit growth?
Higher domestic cement sales volumes, improved capacity utilisation and better operating efficiency supported the increase in profit.
4. Why are UltraTech’s costs rising?
The company faced higher raw-material, fuel and packaging costs. Grey cement fuel costs rose 14% per tonne, while packaging costs increased 30% year-on-year.
5. What is UltraTech’s cement capacity target for 2028?
UltraTech aims to increase global grey cement capacity to more than 240 million tonnes per annum by March 2028.
6. What is UltraVolt?
UltraVolt is UltraTech’s newly launched cables and wires brand. The company has invested ₹1,100 crore in the business so far, against a previously announced investment commitment of ₹1,800 crore.
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