India's UltraTech Cement beats fourth-quarter profit estimates on improved demand (updated)

Ultratech Cement

27/04/2026 11:00

Adds details from analyst call in paragraphs 10-13

By Surbhi Misra and Anuran Sadhu

April 27 (Reuters) - UltraTech Cement ULTC.NS, India's largest cement maker by capacity, beat quarterly profit estimates on Monday, helped by improved demand amid favourable weather for construction activity.

India's cement demand increased 6% to 7% year-on-year in the three months ended March, supported by strong activity in January and February and resilient infrastructure-led demand, according to analysts at HDFC Securities.

UltraTech's revenue rose about 12% to 257.99 billion rupees  ($2.74 billion), supported by a 9% growth in sales volume, as the firm increased its market share on the back of better capacity utilization.

"Capacity utilisation surged to 89%, propelled by robust demand across housing, infrastructure, and commercial construction segments," the company said in an exchange filing.

Chief Financial Officer Atul Daga said the company expects a volume growth of 7% to 8% annually and is targeting double-digit growth in fiscal year 2027.

Daga said the Iran war may impact earnings in July to September if tensions persist, adding the cement maker should do better than the industry due to long-term fuel contracts and diversified sourcing.

UltraTech plans to add 15.9 million tonnes per annum of cement capacity in fiscal 2027 and another 29.8 million tonnes in fiscal 2028 as it expands its footprint.

"The company plans annual capital expenditure of about 80 billion to 100 billion rupees over the foreseeable future," Daga said in a post-earnings call.

UltraTech's consolidated net profit, which includes earnings from subsidiaries and recently integrated India Cements ICMN.NS and assets of Kesoram Industries, rose 20.2% to 29.83 billion rupees.

Analysts had expected a profit of 28.1 billion rupees, per data compiled by LSEG.

Weak cement prices in southern and eastern parts of India hurt the firm's operating margin, which dropped to 20% from 22% a year ago.

Analysts had expected an increase in operating costs for cement makers, due to higher fuel prices and elevated packing costs. UltraTech's raw material costs rose 15.4%, pushing total expenses up 9.2% to 218.94 billion rupees.

($1 = 94.1900 Indian rupees)

 (Reporting by Anuran Sadhu and Surbhi Misra in Bengaluru; Editing by Subhranshu Sahu and Vijay Kishore)

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