Ultratech Cement has raised its revenue target for the Ultravolt Wires and Cables business from ₹10,000 crore to ₹16,000-18,000 crore, citing changes in copper prices. The company anticipates Fiscal '28 will be a strong performance year for this segment.

Capacity and financial outlook

The company aims for a cement capacity of 240 million tonnes with further growth planned. Management expressed confidence in achieving an EBITDA of ₹1,400 per tonne, supported by anticipated price hikes to manage costs. Additionally, Ultratech expects its net debt to EBITDA ratio to remain under 1x by the end of March.

What the numbers show

The significant upward revision in the Ultravolt revenue target, driven by copper price dynamics, suggests a strategic pivot toward leveraging commodity trends for non-core business growth. Simultaneously, maintaining a net debt/EBITDA ratio under 1x while expanding capacity to 240 million tonnes indicates a disciplined balance sheet strategy, allowing the company to fund growth without excessive leverage.

UltraTech Cement reported a consolidated net profit of ₹1,501 crore for Q2FY27, marking a 21.3% year-on-year increase from ₹1,238 crore in the corresponding quarter last year. The company has also released the audio recording of its earnings call held on October 19, 2026.

Financial performance overview

Topline performance remained strong, with consolidated revenue from operations clocking ₹23,024 crore (Net Sales), a significant increase of 18.9% from ₹19,371 crore in Q2FY26. This figure exceeded the market expectation of ₹225 billion (₹22,500 crore). Operating profitability improved alongside revenue growth, with Operating EBITDA standing at ₹3,721 crore, up 20.3% from ₹3,094 crore in Q2FY26. Total EBITDA, including other income, stood at ₹3,832 crore.

The following table summarises the key financial figures for the quarter:

Balance sheet and debt position

The company’s debt profile saw an increase during the period. Half-year debt rose to ₹235 billion from ₹213 billion quarter over quarter. This uptick in borrowings coincides with the company’s ongoing capacity expansion initiatives and working capital requirements.

Operational highlights

Domestic grey cement sales volumes rose 13.8% to 35.94 million tonnes, supported by disciplined execution and a wider market footprint. Consolidated sales volume grew 12.9% YoY to 38.22 million tonnes. Capacity utilisation jumped to 71% from 66% over the same period last year. During the quarter, UltraTech commissioned 4.6 mtpa grey cement capacity, bringing total capacity to 210.1 mtpa. This included 3.6 mtpa greenfield integrated capacity at Petnikota, Andhra Pradesh, and additional debottlenecking at existing plants.

The company also launched Ultravolt, its wires and cables business, adding a new category to its Building Products portfolio. A state-of-the-art manufacturing facility has been commissioned at Jhagadia, Gujarat, positioning the company as the second largest player by capacity in the housing wires segment. Ultravolt has onboarded over 80,000 retailers and electricians across 500+ districts.

Cost dynamics and efficiency

Key cost indicators reveal mixed trends. Logistics costs remained stable at ₹1,136 per tonne, down 1% QoQ due to reduced lead distances. However, fuel costs rose 14% YoY to ₹1,030 per tonne, driven by higher imported coal mix (50% vs 39% YoY) and pet coke prices. Power costs declined 12% YoY to ₹337 per tonne, aided by a higher renewable energy mix (25.1%) and waste heat recovery systems. Raw material costs increased 6% YoY to ₹718 per tonne, while packing bag costs surged 30% YoY to ₹216 per tonne due to crude oil price impacts.

What the numbers show

A divergence is visible between sequential and annual trends. While net profit grew 21.3% YoY, it declined sequentially from ₹2,604 crore in Q1FY27. This QoQ drop is largely attributable to seasonal factors and higher finance costs compared to the previous quarter. The EBITDA margin stood at 16%, consistent with the previous year's level, indicating stable operating efficiency amidst capacity expansion. Notably, Operating EBITDA per tonne improved by ₹60 YoY to ₹974, reflecting better realisation and cost control despite input inflation. The rise in half-year debt to ₹235 billion aligns with the capital expenditure undertaken for new capacity additions, such as the Petnikota project.