Mumbai: UltraTech Cement has reported a 27% year on year rise in net profits to ₹1,729.4 crore in Q3FY26, on the back of sustained cement sales, beating market expectations.
The company delivered this performance despite challenges, including a shortage of sand across the country and the ₹ 88 crore one-time provisions to meet gratuity and leave liabilities, in compliance with India’s new labour laws.
For the quarter, consolidated cement sales volumes had recorded a growth of 15% year on year, slightly below analysts’ expectations of 19-21%. Despite this, net sales increased 23% YoY to ₹21,506 crore from ₹17,555 crore in the same quarter last year.
The company’s overall cement utilisation improved to 77%, with the company commissioning a further 1.8 Mtpa at Nathdwara, Rajasthan and Dhule, Maharashtra, to reach 188.66 Mtpa domestic grey cement capacity. Overall, the company’s operational capacity increased 140 Mtpa YoY to 1,051 Mtpa. During the quarter, the company invested ₹2,357 crore in capex, even as its net debt-to-EBITDA ratio improved to 1.08x.
The company is now looking to add another 22.8 Mtpa through both brownfield and greenfield projects, cementing its lead as India’s largest cement maker with a capacity of 240.76 Mtpa.
Currently, UltraTech ranks as the second-largest cement producer globally outside China.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
