UltraTech Cement Q2 result: Net profit rises 75% YoY; firm to invest ₹10,255 crore for capacity growth

The company’s revenue from operations stood at ₹19,607 crore year-on-year (YoY) for the quarter under review as compared to ₹16,294 crore, marking an increase of 20.3%.

UltraTech’s operating profit, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), witnessed a growth of 52.6% at ₹3,094 crore as against ₹2,027 crore YoY.

In Q2 FY26, the firm’s margin expanded to 15.78% in contrast to 12.44% reported in the same quarter last fiscal year.

The Aditya Birla Group firm’s consolidated net sales stood at ₹19,371 crore in the reporting quarter as against ₹15,967 crore in Q2 FY25.

UltraTech’s consolidated sales volume reached 33.85 million metric tonnes (mt) for the quarter, growing 6.9%.

The company achieved a growth of 22.3% in domestic grey cement without considering the sales volumes of India Cements and Kesoram in the previous year since they were not part of UltraTech during that period.

“The company has delivered remarkable growth during this quarter. Notably, this growth has exceeded the expected industry growth of around 5% for the same period. This achievement highlights the company's strong performance and its ability to surpass prevailing market trends,” UltraTech Cement said in a statement.

Other segments

Further, UltraTech’s energy costs were lower by 7% YoY, while raw material costs rose 5% on account of an increase in the cost of fly ash and slag. Operating EBITDA per tonne for the existing UltraTech assets of 166.76 million tonnes per annum (mtpa) stood at ₹966 per tonne.

The acquired assets of India Cements and Kesoram generated an operating EBITDA of ₹386 and ₹755 per tonne, respectively. Both acquisitions are progressing rapidly, with 55% of Kesoram’s volumes and 31% of India Cements’ volumes already transitioned under the UltraTech brand, the company stated.

UltraTech’s expansion programme is progressing as planned, with the company steadily enhancing its production capabilities. On a consolidated basis, UltraTech’s domestic grey cement capacity stands at 186.86 mtpa, and with an overseas capacity of 5.4 mtpa, its total global capacity reaches 192.26 mtpa.

Capacity addition

In a separate regulatory filing, UltraTech Cement said it is making an investment of ₹10,255 crore to expand its cement production capacity by 22.8 mtpa, including that of its subsidiary India Cements Limited.

This expansion, approved by the Board of Directors, will be executed through a mix of brownfield and greenfield projects.

“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,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group.

“With this investment, we are reinforcing momentum across core sectors and contributing meaningfully to the acceleration of India’s economic flywheel. 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,” Birla further added.

On Friday, UltraTech Cement shares settled at ₹12,313 crore on NSE, falling 0.36%.