UltraTech Cement Ltd (NSE: ULTRACEMCO) reported a 27% increase in consolidated net profit for the December quarter, surpassing analyst expectations as government-led infrastructure projects fueled higher sales volumes.
The Aditya Birla Group’s cement flagship posted a net profit of ₹1,725.40 crore for the third quarter ended Dec. 31, compared with ₹1,363 crore in the same period last year. The result beat the Bloomberg consensus estimate of ₹1,526 crore based on a poll of 21 analysts.
Revenue from operations rose 23% to ₹21,829.68 crore, up from ₹17,778.83 crore a year ago. Growth was supported by higher sales volumes and contributions from acquired businesses. Consolidated sales volumes reached 38.87 million tonnes per annum (MTPA), representing a 15% increase from the previous quarter.
Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹4,051 crore, a 29% increase year-on-year. The company’s overall capacity utilization improved to 77%, up from 72% in the prior-year period. For the current quarter, management expects utilization to exceed 90%.
Financial Snapshot
For the nine-month period ended December 2025, UltraTech reported consolidated revenue of ₹62,712.1 crore, an 18.6% increase over the previous year. Net profit for the nine-month period surged 45.5% to ₹5,188.3 crore, driven by successful integration strategies and strong demand tailwinds.
Earnings per share (EPS) rose to ₹58.66 in the third quarter, up from ₹46.21 in the same quarter last year. The company reduced its net debt/EBITDA ratio to 1.08x while spending ₹2,357 crore on its ongoing capital expenditure program during the quarter.
Demand Resilience
Management noted that while demand remains robust due to a “multi-year project pipeline” in roads, railways, and housing, the industry faces cost escalations. Higher expenses for power, fuel, pet coke, and coal, alongside freight costs and rupee depreciation, continue to weigh on margins.
UltraTech recognized a one-time exceptional charge of ₹88.48 crore during the quarter related to the implementation of new labor codes, which impacted provisions for gratuity and compensated absences.
Expansion Trajectory
UltraTech’s domestic grey cement capacity currently stands at 188.66 MTPA, with a total global capacity of 194.06 MTPA. The company aims to reach 240.76 MTPA by fiscal year 2028.
Subsidiary India Cements reported a narrowed loss of 57.2 million rupees for the quarter, aided by a 25% jump in sales volumes as UltraTech ramps up capacity.
Specific analyst upgrades, downgrades, or price-target changes occurring today were not mentioned in the sources, though the company’s profit significantly exceeded earlier Bloomberg consensus estimates.