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Ultratech Cement consolidated revenue increased by 15.9% YoY

ICICIdirect Research 21 Jul 2026 DISCLAIMER

News: Ultratech Cement consolidated revenue increased by 15.9% YoY (-4.5% QoQ) to Rs 24648.2 crores, led by sales volume growth of 12.2% YoY (-7.6% QoQ) to 41.31 mtpa and improvement in blended realisation by 3.3% YoY (+3.4% QoQ). Capacity utilisation stood at ~81% in Q1FY27 (vs in Q1FY26). Total cost/ton increased by 3.8% YoY (+5.2% QoQ) mainly due to higher RM cost and other costs which includes packaging cost. Power & fuel cost/ton remained flattish on YoY basis as increase in fuel cost was offset by increase in share of green power and fuel mix change. However, the energy cost increased on QoQ basis due to increase in fuel cost amid geo-political uncertainties. EBITDA/ton improved by 1.4% YoY (-3.1% QoQ) to Rs 1214/ton. Subsequently, EBITDA was up 13.7% YoY (-10.4% QoQ) to Rs 5015.3 crores. PAT increased by 16.8% YoY (-12.9% QoQ) to Rs 2599.28 crore

View: Operating performance remained largely in-line with expectations. Volume growth remained strong & better than industry, led by better demand and ramp-up of recent capacity additions (including acquired assets). Despite increase in costs, overall profitability improved led by better realisations, improvement in overall capacity utilisation and improvement in profitability of acquired entities (India Cement & Kesoram Ind). Though the company is expected to witness some pressure on profitability in Q2FY27 due to cost concerns (management also guides Rs 130-140/ton cost increase QoQ), we believe that profitability to recover from H2FY27, led by double digit volume growth, further-ramp up of added capacities and strong focus on improving operation efficiency. Currently, company is in the process of expanding its capacity to ~213 mtpa by FY27E and ~243 mtpa by FY28E (from 201 mtpa at present), giving longer term growth visibility.

Impact: Neutral

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