UltraTech earnings rose 21.3% year over year in the quarter ended September 30, 2026, as higher cement volumes supported double-digit growth in sales and operating profit. The Aditya Birla Group company announced consolidated net profit of ₹1,501 crore on October 19, while management said recent cement price increases should have a fuller effect in the following quarter.
Key Takeaways
- Net sales increased 18.9% to ₹23,024 crore in the second quarter of fiscal 2027.
- Domestic grey cement volumes rose 13.8%, with capacity utilisation reaching 71%.
- Management expects recent price increases to benefit third-quarter earnings, while warning of continued cost pressures.
Table of Contents
- UltraTech earnings supported by higher cement volumes
- Price increases point to a later earnings benefit
- Capacity expansion continues alongside energy investment
- Conclusion
UltraTech earnings supported by higher cement volumes
UltraTech’s Q2 FY27 results announcement showed consolidated net profit increasing from ₹1,238 crore a year earlier. Profit before interest, depreciation and tax rose 17.3% to ₹3,832 crore from ₹3,268 crore.
Domestic grey cement sales volumes reached 35.94 million tonnes, compared with 31.58 million tonnes in the same period of fiscal 2026. Capacity utilisation increased to 71% from 66%, indicating that the company used more of its available production capacity even as it expanded its manufacturing footprint.
The volume growth came during a season when monsoon rains typically disrupt construction and weaken cement demand. Chief Financial Officer Atul Daga said a weak monsoon had allowed construction to continue and that the industry had largely avoided its usual July–August price declines.
| Item | Details |
|---|---|
| Domestic grey cement capacity | 204.7 million tonnes annually at September 30, 2026 |
| Overseas grey cement capacity | 5.4 million tonnes annually |
| Global grey cement capacity | 210.1 million tonnes annually |
| Installed renewable power capacity | 1,580 MW at quarter-end |
| Installed waste-heat recovery capacity | 444 MW at quarter-end |
Price increases point to a later earnings benefit
Daga said cement prices began rising in September and continued to improve in October. He expected further increases over the next few months, but cautioned that festive weeks could slow their absorption.
Management therefore expects the full benefit of those increases to appear in third-quarter earnings rather than immediately. That is an outlook statement, not a result already reflected in the September-quarter figures.
Higher fuel costs linked to the West Asia conflict remained a pressure, and Daga warned that the second half would not be free of cost challenges. UltraTech shares closed at ₹10,620.10 on the BSE on October 19, down 3%; the available information does not establish the reason for the decline.
Capacity expansion continues alongside energy investment
UltraTech commissioned 3.6 million tonnes of annual integrated capacity at Petnikota, Andhra Pradesh, during the quarter. It also added 1 million tonnes of annual capacity by removing production bottlenecks at existing plants.
The company said its organic capital expenditure programme remained on track to lift capacity above 240 million tonnes annually by March 2028. That figure is a planned milestone, rather than capacity already operating.
Renewable energy and waste-heat recovery supplied 48% of the company’s power mix during the quarter, as UltraTech continued investing in captive energy infrastructure.
Conclusion
The next reporting period will show how much of September and October’s price increases reaches earnings. Management’s stated expectation is for a fuller third-quarter benefit, with fuel costs remaining a constraint.
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