UltraTech Cement is poised to report robust year-on-year performance in Q3FY26, with strong volume growth from acquisitions and capacity additions expected to drive topline expansion despite ongoing pricing pressures and elevated fuel costs. The cement major is scheduled to announce its Q3FY26 earnings on January 24.

Financial Performance Outlook

According to a Moneycontrol Poll of 7 brokerages, UltraTech Cement's financial metrics are expected to show healthy growth across key parameters:

The revenue growth reflects strong topline recovery, while PAT improvement is supported by better operating leverage and enhanced profitability. The EBITDA margin expansion indicates continued improvement in operating efficiency despite prevailing cost pressures.

Volume Growth Driving Performance

UltraTech's cement volumes are expected to grow significantly, with brokerages projecting 15-21% year-on-year growth in Q3FY26. BNP Paribas estimates volumes at 36.7 million tonnes, implying 21% YoY and 9% QoQ growth, driven by:

• Consolidation of acquired assets
• Ramp-up of new capacities
• Seasonal recovery in demand

However, HSIE notes that while total volumes should rise around 15% YoY, like-to-like growth remains lower at 8%, reflecting still-muted underlying demand conditions.

Pricing and Cost Dynamics

Cement prices remained under pressure during the quarter, particularly in South and East regions, following GST rate cuts and weak demand in October-November. BNP Paribas estimates UltraTech's blended realisation at ₹5,717 per tonne, down 1% QoQ but up 1% YoY. Elara Securities expects a 2% sequential decline in industry realisations, though UltraTech's diversified regional presence should limit downside impact.

Fuel costs, especially pet-coke, remained elevated during Q3FY26. However, benefits from operating leverage, logistics optimisation, and higher green energy usage are expected to partially offset these cost pressures.

Capacity Expansion and Growth Outlook

During the quarter, UltraTech commissioned approximately 1.8 mtpa of cement capacity, including:

• 0.6 mtpa at Dhule, Maharashtra
• 1.2 mtpa at Nathdwara, Rajasthan

The company has provided guidance for around 8.8 mtpa of additional cement capacity commissioning in Q4FY26, which should further support volume growth in subsequent periods.

Key Monitoring Points

Analysts will focus on several critical factors when evaluating UltraTech's Q3FY26 performance:

• Pricing sustainability across different regions
• Fuel cost trends and their impact on margins
• Demand recovery patterns across various markets
• Progress on capacity utilisation from recent additions

UltraTech's consolidated EBITDA is expected to grow approximately 23% YoY and 15% QoQ to about ₹35,460 crore, driven by strong volume growth and operating leverage, though margins remain below peak levels due to ongoing pricing pressures.

UltraTech Cement executed a significant block trade on the National Stock Exchange (NSE), marking a notable institutional transaction in the cement sector. The large-volume trade demonstrates continued institutional interest in one of India's leading cement manufacturers.

Transaction Details

The block trade involved substantial financial parameters that highlight the scale of institutional activity in the stock.

Block Trade Significance

Block trades represent large-volume transactions executed outside regular market hours or through special trading mechanisms. These transactions allow institutional investors to trade substantial quantities without significantly impacting the stock's market price. The execution of such trades typically indicates:

• Institutional portfolio rebalancing activities
• Large-scale investment decisions by mutual funds or foreign institutional investors
• Strategic stake transfers between institutional entities

Market Context

The transaction price of ₹12,373.00 per share reflects the current market valuation of UltraTech Cement shares. Block trades of this magnitude often serve as indicators of institutional confidence and provide insights into large investor sentiment toward the company's prospects.

Such institutional transactions in the cement sector often reflect broader infrastructure and construction industry dynamics, as cement companies play a crucial role in India's ongoing development initiatives.