Summary:
UltraTech Cement’s Q2FY27 net profit rose 21.3% year on year to ₹1,501 crore, supported by strong sales growth. However, rising fuel costs pressured profitability per tonne, prompting planned cement price hikes. Capacity expansion and stronger construction demand could support performance in the second half.
UltraTech Cement Limited, India's largest cement manufacturer by capacity, is looking at further cement price increases to offset rising fuel and input costs. Despite reporting strong volume growth and a 21.3% YoY rise in net profit during Q2FY27, the company's profitability per tonne remained under pressure.
The company expects higher cement prices and improved construction demand following the festive season to support its performance in the second half of FY27.
UltraTech Cement Q2FY27 Results: Profit Rises 21%
UltraTech Cement reported consolidated net sales of ₹23,024 crore for the September 2026 quarter, up 18.9% YoY from ₹19,371 crore.
Profit after tax increased 21.3% to ₹1,501 crore, compared with ₹1,238 crore in Q2FY26. Profit before interest, depreciation and tax (PBIDT) rose 17.3% to ₹3,832 crore.
Domestic grey cement sales volumes increased 13.8% YoY to 35.94 mn tonnes, supported by demand from infrastructure and housing projects.
Capacity utilisation improved to 71% from 66% in the corresponding quarter last year.
Key Q2FY27 financial highlights:
| Particulars | Q2FY27 | Q2FY26 |
| Consolidated net sales | ₹23,024 crore | ₹19,371 crore |
| PBIDT | ₹3,832 crore | ₹3,268 crore |
| Net profit | ₹1,501 crore | ₹1,238 crore |
| Domestic grey cement volumes | 35.94 mn tonnes | 31.58 mn tonnes |
| Capacity utilisation | 71% | 66% |
Why UltraTech Cement Is Planning Further Price Hikes
Higher energy costs have emerged as a significant challenge for cement manufacturers.
UltraTech's EBITDA per tonne declined approximately 20% QoQ to ₹974 during Q2FY27, reflecting pressure from expensive fuel and relatively weak cement prices.
Blended fuel costs increased to ₹2.09 per kcal from ₹1.90 per kcal in Q1FY27, despite the company reducing petroleum coke consumption.
Cement prices had remained weak during the monsoon quarter. However, prices started recovering in September, with further increases reported during October.
The company expects higher cement realisations to help absorb rising production expenses.
Its earlier target of achieving EBITDA of ₹1,400 per tonne by March 2028 remains an important profitability milestone.
Capacity Expansion & New Business Investments
UltraTech continued expanding its manufacturing network during the quarter, commissioning 3.6 mn tonnes per annum of integrated capacity in Andhra Pradesh and adding another 1 mn tonnes through improvements at existing plants.
Its consolidated domestic grey cement capacity reached 204.7 mn tonnes per annum by September 30, 2026.
The company aims to increase global cement manufacturing capacity beyond 240 mn tonnes per annum by March 2028.
UltraTech also entered the wires and cables business through its Ultravolt brand, expanding its presence in building materials.
Green power accounted for 48% of its electricity mix during the quarter, supported by renewable energy and waste heat recovery systems.
Why Did UltraTech Cement Shares Fall After Q2 Results?
UltraTech Cement shares declined 2.82% on the BSE on October 19, closing at ₹10,620.10 after the quarterly results were announced.
Higher input costs, weaker operating profitability per tonne and earnings below market expectations coincided with the decline.
However, the stock recovered on October 21, rising 1.80% to close at ₹10,811.15 on the BSE, despite weakness in the broader equity market.
The recovery followed renewed attention to cement price increases and the company's volume growth.
Outlook
UltraTech's higher sales volumes and capacity expansion provide a foundation for future revenue growth.
However, fuel costs and cement realisations will remain critical to profitability. The impact of recent price increases on margins and earnings should become clearer in the coming quarters.
