India’s largest cement producer, Ultratech, has reported a 75 per cent growth in net profits for the quarter ended 30 September (2QFY26), boosted by improved sales and lower energy costs.
Net profits for the quarter reached INR12.32bn (US$140.25m) against INR7.03bn in the YoY period. Revenue reached INR19.37bn for the quarter, up 21.32 per cent YoY.
EBITDA stood at INR32.68bn, an increase of 45 per cent. EBITDA per tonne was up by INR337/t annually at INR1248/t. Consolidated sales volumes for 2QFY26 came in at 33.85Mt.
The company also achieved a 22.3 per cent growth in domestic grey cement sales. This figure excluded the sales volumes of India Cements and Kesoram in the previous year since they were not part of Ultratech during this period.
“The acquired assets of India Cements and Kesoram have generated an operating EBITDA of INR386 and INR755 per tonne respectively. Both the acquisitions are rapidly improving with 55 per cent of Kesoram volumes and 31 per cent of India Cements volumes already transitioned to the power of UltraTech brand,” the firm said in its earnings statement.
Sales realisation (revenue per tonne) for 2QFY26 was INR5088/t, up 4.5 per cent annually, and down 1.4 per cent from the preceding quarter.
Grey cement fuel and power cost were down six per cent and eight per cent respectively YoY Fuel cost came in at INR893/t and power cost was INR372/t.
UltraTech’s domestic grey cement capacity is 186.86Mta, on a consolidated basis. Together with its overseas capacity of 5.4Mta, the company’s global capacity stands at 192.26Mta.
UltraTech’s target capacity addition for FY26 is 14.1Mta, and target domestic capacity at the end of FY27 is 212.2Mta.
The firm announced its next phase of capacity expansion starting FY28. It said it will deploy INR102.55bn for this phase of expansion to exit FY28-29 with a target capacity of 240.8Mta, resulting in capacity addition of 22.8Mta.
“This latest capacity expansion follows more than INR500bn invested over the past five years, underscoring deep and sustained confidence in the Indian economy and the scale of its infrastructure ambitions. Capital, when deployed strategically, has a catalytic effect,” Kumar Mangalam Birla, chairman, Aditya Birla Group said.
