Market leader UltraTech Cement net profit grew 27% annually for the quarter ended December 31, 2025, on the back of improved sales.
Net profit for the quarter came in at Rs 1,725 crore as compared to Rs 1,359 crore in the same quarter last fiscal. This includes a provision of Rs 88 crore as an exceptional expense towards additional Gratuity and Leave Encashment obligations. Excluding the one-time expense, net profit came in at Rs 1,792 crore, ahead of Bloomberg estimates of Rs 1,526 crore.
Revenue for the fiscal second quarter at Rs 21,506 crore, also ahead of Bloomberg estimates of Rs 20,953 crore and was up 22.5% year on year.
Operational Efficiency
Earnings before interest, taxation, depreciation and amortisation (EBITDA) at Rs 4.051 crore was, and up 29% annually. EBITDA outperformed Bloomberg estimates of Rs 3,464 crore.
The cement firm’s operating EBITDA/metric tonne (Mt) was up Rs 140/Mt annually at Rs 1,051/Mt (Q3FY25: Rs 911).
UltraTech’s consolidated sales volumes for the quarter came in at 38.87 million Mt, growing 15% year on year.
UltraTech achieved a growth of 29.4% in domestic grey cement without considering the sales volumes of India Cements and Kesoram in the previous year since they were not part of UltraTech during that period.
“India Cements is on its recovery path with sales volumes of 2.59 million Mt, a growth of 25% over last year. With improvement in the efficiency and productivity, completion of capex plans and brand transition to UltraTech, the company will start generating targeted profitability in line with the holding company,” the firm said in its earnings statement.
Sales realisation (revenue per metric tonne) for Q3FY26 was Rs 4,920 per metric tonne, up 3.3% annually, and down 0.4% from the preceding quarter.
Grey cement fuel and power cost were down 2% and 15% respectively year on year. Fuel cost came in at Rs 884/metric tonne and power cost was Rs 349/metric tonne. Renewable power capacity in Q3 was 1.28 BW, up 70% year on year.
Overall capacity utilisation stood at 77% for the quarter, compared to 72% during the same period last year.
UltraTech’s domestic grey cement capacity is 188.66 mtpa (metric tonne per annum), on a consolidated basis. The firm commissioned 1.8 mtpa capacity in the quarter.
Along with 5.4 mtpa cement capacity in the UAE, the company’s global capacity now has reached 194.06 mtpa.
Strategic Expansion
“During the quarter, the Company spent Rs. 2,357 crores on its ongoing capex program and has reduced its net debt ebitda of 1.08 x reflecting its strength in the operating cash flows,” UltraTech said in its earnings release.
The firm added that it, along with its subsidiary, India Cements Limited, has initiated the next phase of its expansion, to add 22.8 mtpa of capacity, through a mix of brownfield and greenfield projects and work is progressing as scheduled. Post completion of this phase of expansion, UltraTech will reach a capacity of 240.76 mtpa.
“The Cables and Wires business is on track, with critical orders placed, civil work on the project site in progress and team is getting on board. The Company is confident of meeting the committed launch timelines of Q3FY27,” it added.
UltraTech announced its entry into the Cables and Wires segment in early 2025, committing a capex of Rs 1,800 crore with the plant to be set up near Bharuch in Gujarat.