Higher cement sales help UltraTech beat earnings estimates

India’s largest cement maker UltraTech Cement Ltd reported better-than-expected net profit for the December quarter, beating analyst estimates on strong cement sales.

Consolidated net profit of Aditya Birla Group’s cement arm increased by 27% YoY ₹ ₹1,725.40 crore, according to stock exchange records. Profit exceeded the record Bloomberg consensus estimate ₹1,526 crore, according to a survey of 21 analysts.

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Mumbai-based cement maker’s revenue from operations up 23% ₹21,829.68 crore compared to this quarter ₹17,778.83 crore a year ago, supported by higher sales volumes and contributions from acquired businesses. The company’s consolidated sales volumes stood at 38.87 million tonnes per annum (mtpa), up 15% from 3QFY25.

Strong demand

Demand remains strong as the government’s infrastructure drive translates into a robust, multi-year pipeline of projects across regions and supports sustainable cement consumption, management said during a post-earnings interaction with analysts. The company is well positioned to meet this demand through its pan-India network, ongoing capacity expansion and improving operating efficiency, while maintaining a prudent balance sheet and financing growth through internal accruals.

“India is witnessing a multi-year build-out of infrastructure in roads, metros, railways, ports and housing,” Atul Daga, chief financial officer of UltraTech, said in a post-earnings call with analysts, adding that “new avenues such as data centres, renewable energy and urban infrastructure are driving growing demand.”

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Cement prices continued to remain weak following the GST change. “There was some softening in prices in September, October and November. However, with increasing demand, we are seeing price increases in all segments across the country. There have been cost increases in pet coke and coal costs. The new labor law will have its own impact, there will be devaluation of the rupee. All these will have an impact on the cement industry and frankly, there are reasons to reflect these cost increases in prices,” Daga said.

UltraTech’s domestic gray cement capacity is 188.66 mtpa. Its consolidated capacity is 194.06 million tonnes per annum, including 5.4 million tonnes per annum in the United Arab Emirates (UAE). UltraTech plans to increase total global cement capacity to 240.76 mtpa by FY28.

Daga also outlined the additions for the coming quarters and years.

“More is due to come in this quarter, from about 8 million tonnes to 9 million tonnes, and I think the balance is 16-12 million tonnes in fiscal ’27, and then the rest in ’28,” he said.

The company’s chief financial officer said the company expects to operate at more than 90% of its installed capacity in the current quarter; This is higher than 77% in 3Q26.

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UltraTech said in a statement that new labor laws led it to recognize one-time exceptional compensation. ₹88.48 crore. Remuneration mainly relates to compensation paid following changes in the definition of remuneration and additional provisions for paid absences.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for this quarter were as follows: ₹compared to 4,051 crore ₹3,142 crore in 3QFY26. However, high energy and fuel costs, as well as freight expenses, continued to put pressure on overhead expenses throughout the quarter.