UltraTech Cement , the flagship company of the Aditya Birla Group, has reported robust financial results for the second quarter of fiscal year 2026, alongside an ambitious capacity expansion plan. The company's performance underscores its strong market position and commitment to future growth in India's burgeoning cement sector.

Q2 FY26 Financial Highlights

UltraTech Cement's consolidated net sales for Q2 FY26 stood at ₹19,371.00 crores, marking a significant 21.3% increase from ₹15,967.00 crores in the corresponding quarter of the previous year. The company's profit before interest, depreciation, and tax (PBIDT) rose to ₹3,268.00 crores, up from ₹2,253.00 crores in Q2 FY25. Notably, profit after tax (PAT) surged by 75% to ₹1,232.00 crores, compared to ₹703.00 crores in the same period last year.

Operational Performance

The company achieved a remarkable 22.3% growth in domestic grey cement sales, excluding volumes from recently acquired India Cements and Kesoram assets. This growth significantly outpaced the industry's expected growth of around 5% for the same period, highlighting UltraTech's strong market performance.

Energy costs decreased by 7% year-over-year, while raw material costs increased by 5% due to higher prices of flyash and slag. The operating EBITDA per ton for UltraTech's existing assets (166.76 mtpa capacity) reached ₹966.00.

Capacity Expansion Plan

In a strategic move to reinforce its market leadership, UltraTech Cement has announced a substantial capacity expansion plan. The company's Board of Directors has approved a capital expenditure of ₹10,255.00 crores to increase its cement production capacity by 22.8 million tonnes per annum (mtpa). This expansion includes:

• A mix of brownfield and greenfield projects across the country
• Capacity additions for UltraTech and its subsidiary, India Cements Limited
• Phased implementation starting from FY28 onwards

Upon completion, this expansion will elevate UltraTech's total cement capacity to 240.76 mtpa globally, further solidifying its position as the second-largest cement company worldwide by capacity, excluding China.

Sustainability Initiatives

UltraTech continues to make strides in sustainability:

• Operationalized a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at Sewagram Cement Works, Gujarat
• Commissioned 9 MW of waste heat recovery system (WHRS) capacity
• Increased the share of green power (including WHRS and renewable energy) to 41.6% of its total power mix

Management Commentary

Mr. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, commented on the expansion plan: "This latest capacity expansion follows more than ₹50,000 crores invested over the past five years, underscoring deep and sustained confidence in the Indian economy and the scale of its infrastructure ambitions. As India enters a transformative era of infrastructure and economic development, UltraTech is well-positioned to meet the rising demand for cement and contribute meaningfully to the nation's journey towards Viksit Bharat 2047."

The company's strong Q2 performance and ambitious expansion plans reflect its optimism about India's economic growth trajectory and its commitment to maintaining its leadership in the cement industry. As infrastructure development continues to be a key focus for India, UltraTech Cement appears well-positioned to capitalize on the growing demand for building materials in the coming years.

UltraTech Cement , the flagship company of the Aditya Birla Group, has reported a strong performance for the second quarter of fiscal year 2026, significantly outpacing industry growth expectations. The company's financial results, released on October 18, 2025, showcase impressive revenue growth and operational improvements across key metrics.

Financial Highlights

UltraTech's consolidated net sales for Q2FY26 reached Rs. 19,371.00 crores, marking a substantial 21.3% increase from Rs. 15,967.00 crores in the corresponding period last year. The company's profit after tax (PAT) saw an even more impressive jump, rising 75% year-on-year to Rs. 1,232.00 crores, up from Rs. 703.00 crores in Q2FY25.

Operational Performance

The company achieved a remarkable 22.3% growth in domestic grey cement volumes, significantly exceeding the industry's expected growth of around 5%. This performance underscores UltraTech's strong market position and operational efficiency.

UltraTech's existing assets, with a capacity of 166.76 mtpa, generated an operating EBITDA of Rs. 966.00 per ton. The recently acquired assets from India Cements and Kesoram Industries are showing rapid improvement, with operating EBITDA of Rs. 386.00 per ton and Rs. 755.00 per ton, respectively.

Cost Management and Efficiency

The company demonstrated effective cost management during the quarter:

• Energy costs decreased by 7% year-on-year
• Raw material costs increased by 5%, primarily due to higher flyash and slag prices
• The company transitioned to GST 2.0 from September 22, 2025, passing on the full benefit of reduced GST rates to customers

Capacity Expansion and Market Position

UltraTech's domestic grey cement capacity now stands at 186.86 mtpa on a consolidated basis. Including its overseas operations, the company's global capacity has reached 192.26 mtpa, further solidifying its position as the second-largest cement company worldwide, excluding China.

Sustainability Initiatives

UltraTech continues to make strides in sustainability:

• Operationalized a 7.5 MW round-the-clock hybrid renewable energy project at Sewagram Cement Works, Gujarat
• Commenced 9 MW of Waste Heat Recovery System (WHRS) capacity, bringing the total WHRS capacity to 369 MW
• Increased the share of green power (including WHRS and RE Power) to 41.6% of the company's power mix for the quarter

Market Outlook

While the company has not provided specific forward-looking statements, the strong performance in Q2FY26, particularly in domestic grey cement volumes, suggests a positive outlook for UltraTech in the coming quarters. The company's focus on sustainability and operational efficiency may contribute to its continued growth and market leadership.

UltraTech Cement's Q2FY26 results demonstrate the company's ability to capitalize on market opportunities while maintaining a strong focus on operational excellence and sustainability. As the Indian construction and infrastructure sectors continue to grow, UltraTech appears well-positioned to benefit from and contribute to this expansion.