UltraTech Cement Reports strong Q3 FY26 Results: A Deep Dive into Growth and Future Outlook
UltraTech Cement, a flagship company of the Aditya Birla Group, has announced a notable surge in its financial performance for the third quarter of fiscal year 2026 (Q3 FY26). The company reported a consolidated net profit of ₹1,725.40 crore, representing a substantial 26.92% year-over-year (Y-o-Y) increase and exceeding analyst expectations of ₹1,526 crore. This robust performance underscores UltraTech’s continued dominance in the Indian cement industry and its strategic positioning for future growth.
Key Financial Highlights:
* Net Profit: ₹1,725.40 crore (26.92% Y-o-Y increase)
* Revenue from Operations: ₹21,829.68 crore (22.78% Y-o-Y increase)
* sales Volume: 38.87 million tonnes (MT),a 15% Y-o-Y increase
* EBITDA per Metric Tonne: ₹1,051,up ₹140 Y-o-Y
Driving Factors Behind the Growth:
The extraordinary results were primarily fueled by a substantial increase in sales volumes,reaching 38.87 MT, a 15% rise compared to the same period last year. This growth demonstrates strong demand for UltraTech’s cement products, driven by ongoing infrastructure development and housing projects across India. Despite a slight decline in realisations (0.4% Y-o-Y and 3.3% quarter-on-quarter) due to GST rationalization and increased competition, the company successfully leveraged higher volumes to boost overall revenue and profitability.
According to Atul Daga, buisness Head and CFO of UltraTech Cement, while cement prices experienced some softening following the GST changes in September, october, and November, they are now showing signs of improvement with growing demand across all segments nationwide.
Cost Management and Operational Efficiency:
UltraTech Cement has demonstrated a commitment to cost management, with power costs for gray cement declining by 15%, and fuel and logistics costs decreasing by 2% and 4% respectively. However, the company did experience a 6% increase in raw material costs for grey cement. The company anticipates potential cost pressures from factors like rising pet coke and coal prices, the new labor code, and rupee depreciation, but remains confident in its ability to pass on these escalations to prices.
The company also recognized an exceptional expense of ₹88 crore related to additional gratuity and leave encashment obligations following the implementation of the new Labour Code.
Expansion and Future Outlook:
UltraTech Cement is aggressively expanding its production capacity to meet the anticipated future demand. The company commissioned 0.6 mtpa of cement capacity in Maharashtra and 1.2 mtpa in Rajasthan during the quarter, bringing its total domestic grey cement capacity to 188.66 mtpa. Including its 5.4 mtpa cement capacity in the UAE, UltraTech’s global capacity now stands at 194.06 mtpa.
A significant investment of ₹10,255 crore has been earmarked for further capacity expansion, aiming to reach a total global capacity of 240.76 mtpa by FY28. This expansion will solidify ultratech’s position as one of the world’s largest cement producers.
The company is strategically positioned to benefit from large-scale infrastructure projects across various states and sectors, anticipating sustained robust demand for cement in the coming years.
Performance Compared to Peers:
While UltraTech demonstrated strong growth, a comparison with its peers reveals varying performance levels. Nuvoco Vistas Corp reported a 7% rise in sales volumes (5 MT), Dalmia Bharat reported volumes of 7.3 MT (up 9.5%), and JK Cement’s grey cement sales volume stood at 5.32 MT, up 22% Y-o-Y.
Nine-Month Performance (FY26):
For the first nine months of FY26, UltraTech’s revenue grew 18.56% Y-o-Y to ₹62,712.06 crore, while profit rose 45.7% to ₹5,182.88 crore. as of December 2025, the company’s consolidated net debt stood at ₹17,929 crore.
Keywords: UltraTech Cement, Aditya Birla Group, Cement Industry, Financial Results, Q3 FY26, Cement Production, Infrastructure Development, Cement Prices, GST Impact, Capacity Expansion, Cement Sales, India Cement Market, EBITDA, Net profit, Revenue Growth, Construction Materials.
