UltraTech Cement (ULTRACEMCO) Q2 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of ₹19,371 crore in Q2 FY26, up 21.3% YoY, with profit after tax at ₹2,226 crore and strong growth in premium cement, rural markets, and core segments.

• Domestic grey cement volumes grew 22.3% YoY, significantly outpacing the industry average of 5%, with UltraTech brand domestic volume up 13.2%.

• Rapid integration and rebranding of acquired India Cements and Kesoram assets, with brand conversion at 31% and 55% respectively, and operational improvements.

• RMC (Ready-Mix Concrete) segment posted 30% YoY revenue growth and 26% volume growth, now accounting for 4% of cement volumes with over 400 plants.

• Expansion plans underway to reach 200 million tons capacity by FY26-end and 240–245 million tons by FY29, with further brownfield and greenfield projects targeting North and West India.

Financial highlights

• Sales volume grew 22.3% YoY (excluding ICL/Kesoram), 9.6% YoY (excluding ICL), and 6.8% YoY (including both); grey cement realisation improved 4.5% YoY to ₹5,088/ton.

• EBITDA for the quarter was ₹3,268 crore, with operating EBITDA per ton at ₹966 for legacy assets, ₹386 for India Cements, and ₹755 for Kesoram.

• Net profit for the quarter was ₹1,237.98 crore, up from ₹707.96 crore in Q2FY25; earnings per share (basic) for Q2FY26 stood at ₹41.87.

• Logistics, fuel, and power costs decreased 6–8% YoY, while raw material costs rose 5% YoY; fuel costs increased sequentially to INR 1.8 per Kcal.

• One-off higher costs (maintenance, advertising, staff) impacted performance by ~INR 200 per ton.

Outlook and guidance

• Brand transition for acquired assets expected to complete by June 2026, with significant volume transition to the UltraTech brand.

• Expansion to 240–245 million tons capacity by FY29, with further scope for 20–25 million tons beyond 2030.

• Industry demand growth guidance of 6–7% for FY26, with Q2 industry growth at 4.5–5%.

• Strategic partnership with CONCOR to enhance bulk cement logistics and reduce costs; focus on green logistics and renewable energy.

• Premiumization expected to benefit from GST changes, improving affordability for consumers.