UltraTech Cement posts record Q1 FY27 profits, India Cements turnaround gains momentum
UltraTech Cement reported record Q1 FY27 results with ₹2,604 crore net profit and 13.1% volume growth. India Cements showed a 21% revenue increase on an ex-factory basis, signaling a successful turnaround. Despite fuel cost pressures, operating EBITDA per ton remained stable above ₹1,200.
*this image is generated using AI for illustrative purposes only.
UltraTech Cement Limited delivered a record-breaking first quarter of fiscal 2027, reporting a net profit of ₹2,604 crore, up 17.2% from the same period last year. The Mumbai-based cement major achieved this milestone through a robust 13.1% growth in domestic grey cement volumes and sustained operating leverage, even as it navigated volatile global energy markets. The results underscore the company’s successful strategy of brand premiumization and capacity expansion, which has allowed it to outpace industry growth rates significantly.
The earnings call, held on July 20, 2026, was led by Chief Financial Officer Atul Daga, who highlighted that the quarter marked the highest-ever performance for UltraTech across volumes, revenues, EBITDA, and profit. Capacity utilization stood at 81%, up from 76% in the prior year, against an enlarged domestic capacity base of 200 million tons. Daga emphasized that the company’s structural buffers, including renewable energy integration and reduced lead distances, helped absorb fuel cost shocks better than peers.
Financial Performance Highlights
| Metric | Q1 FY27 Value | YoY Change / Note |
|---|---|---|
| Net Profit (PAT) | ₹2,604 crore | Up 17.2% |
| EBITDA | ₹5,146 crore | Up 12% |
| Revenue Growth | 16% | Driven by volume and price |
| Volume Growth (Domestic) | 13.1% | Outpacing industry |
| Capacity Utilization | 81% | Up from 76% last year |
| Operating EBITDA/Ton | >₹1,200 | Stable despite cost pressures |
A key driver of the financial strength was the complete brand migration of acquired assets, india cements and Kesoram, to the UltraTech banner. Daga noted that this conversion allowed the company to capture price premiums from customers previously buying B or C category brands. Consequently, the UltraTech brand itself grew by 21.3% over the same period last year.
India Cements Turnaround Progress
The turnaround at India Cements Limited emerged as a standout narrative. While reported revenues appeared flat at ₹1,013 crore compared to ₹1,021 crore in Q1 FY26, management clarified that this was due to a change in accounting methodology. Reporting ex-factory sales from Q1 FY27, excluding freight costs, reveals a true revenue growth of 21%. Ex-factory revenues rose to ₹993 crore from ₹821 crore on a like-for-like basis, supported by a 19% volume growth.
Operational metrics for India Cements have improved sequentially. EBITDA per ton climbed from approximately ₹386 in Q2 FY26 to ₹603 in Q1 FY27. This improvement is attributed to cost-saving capital expenditures of about ₹2,000 crore deployed in waste heat recovery and preheater upgrades. Additionally, the green power mix for India Cements has surged from 3% to an expected 86% by the end of fiscal 2028.
Cost Pressures and Forward Outlook
Despite the strong top-line growth, the company faced significant input cost inflation. Fuel costs rose by ₹25–₹40 per ton, while packing bag costs increased from an average of ₹9 to ₹12 per bag. Daga projected that total costs could rise by ₹130–₹140 per ton in the upcoming monsoon quarter (Q2 FY27) due to maintenance cycles, seasonal volume slowdowns, and residual war-related supply disruptions. However, he maintained that prices would remain resilient due to strong demand momentum.
Looking ahead, UltraTech is executing a capital expenditure program of ₹17,000 crore over the next 2.5 years to expand consolidated capacity beyond 242 million tons. The company also reaffirmed its commitment to launching its new cables and wires business in Q3 FY27, with facility setup complete and trial runs underway. Net debt to EBITDA improved to 0.87x from 0.94x at the start of the year, reflecting strong cash flow generation.
Historical Stock Returns for India Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.29% | +2.30% | +7.09% | -5.68% | +9.94% | +106.44% |
How will the projected ₹130–₹140 per ton cost increase in Q2 FY27 impact UltraTech's ability to maintain its >₹1,200 operating EBITDA/ton margin during the monsoon slowdown?
What is the expected timeline for the new cables and wires business to contribute meaningfully to consolidated revenue, and how does its initial ROI compare to UltraTech's core cement operations?
Given the aggressive capacity expansion to 242 million tons, how might increased supply affect industry-wide pricing power and UltraTech's market share gains in the next 18 months?
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