UltraTech Cement (ULTRACEMCO) Q3 25/26 earnings summary

Executive summary

• Robust demand from government infrastructure projects and marquee investments drove strong cement consumption and 22.5%–23% YoY revenue growth in Q3 FY26, with operational efficiencies and disciplined execution supporting margin gains.

• Capacity utilisation improved to 77%, with domestic grey cement volumes up 15.4%–29.4% YoY and UltraTech brand volumes up 22.3%.

• Integration of Kesoram and India Cements progressing ahead of plan, with significant brand conversion, cost improvement, and targeted profitability post-integration.

• RMC business expanded rapidly, with 25% YoY volume growth and 26% YoY revenue growth, and construction chemicals segment posted 34.6% YoY revenue growth.

• Major acquisitions and capacity additions, including 1.8 mtpa new capacity commissioned in Q3 FY26, support future growth.

Financial highlights

• Q3FY26 consolidated revenue reached ₹21,829.68 crores, up 22.5%–23% YoY; EBITDA rose 29% YoY to ₹4,051 crores, with PAT up 32% YoY to ₹1,792 crores.

• Operating EBITDA per ton improved to ₹1,051, with net profit margin at 8% and earnings per share at ₹58.66.

• Net debt to EBITDA at 1.08x, expected to improve to 0.89x by fiscal year-end; debt-equity ratio at 0.30.

• Premium product share reached 36% in Q3.

• Employee costs increased due to annual increments, new plant additions, and Labour Codes implementation (₹88.48 crore one-time impact).

Outlook and guidance

• Ongoing capacity expansion to reach 235–240.76 mtpa by FY28, with 22.8 mtpa under development and no expected spillover beyond FY28.

• Expectation to operate at over 90% capacity utilisation in Jan–Mar, with guidance for 7–8% annual demand growth over the next 4–5 years.

• Cement prices have started to improve after a period of softness, with further increases anticipated.

• EBITDA per ton expected to improve further in Q4 and beyond.

• Cables and Wires business on track for Q3 FY27 launch.