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Infrastructure Boom Propels UltraTech to Earnings Beat as Sales Surge 15%

Source Mint

NEW DELHI — UltraTech Cement, the flagship of the Aditya Birla Group and India’s largest cement manufacturer, reported a robust third-quarter performance for fiscal year 2026, significantly outpacing analyst expectations. The company’s success was anchored by double-digit volume growth and aggressive capacity expansion that tapped into the nation’s ongoing infrastructure and housing upswing.

Profit and Revenue Highlights

For the quarter ending December 31, 2025, UltraTech reported a consolidated net profit of ₹1,729.4 crore, marking a 27% year-on-year (YoY) increase from the ₹1,363.4 crore recorded in the same period last year.

Revenue from operations also saw a significant jump, climbing 22.8% to ₹21,829.7 crore. This performance comfortably cleared market estimates, which had projected a net profit closer to ₹1,526 crore.

Key Performance Drivers

The “beat” was largely attributed to a massive scale-up in operations and strategic market capture:

Volume Growth: Consolidated sales volumes grew by 15% YoY, reaching 33.85 million tonnes.

Operational Efficiency: The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged 35.2% to ₹3,915 crore, with margins expanding to 17.94%.

Capacity Utilization: UltraTech operated at 77% capacity, up from 72% a year ago, showcasing better sweat-of-assets despite adding new facilities.

Strategic Integrations: The quarter benefited from the successful integration of India Cements and Kesoram Industries’ cement business, which significantly bolstered the company’s domestic footprint.

A Greener Bottom Line

Beyond the balance sheet, UltraTech reported a shift toward sustainable operations. The company’s green power mix—which includes Waste Heat Recovery Systems (WHRS) and renewable energy—now accounts for 42.1% of its total power requirement. This shift not only supports environmental goals but also helps buffer the company against volatile fuel prices.

“UltraTech continues to deliver strong performance quarter after quarter. Our focus on operational excellence and expanding our reach has allowed us to capitalize on the healthy demand in the construction sector,” the company stated in its regulatory filing.

Q3 FY26 at a Glance

Metric Q3 FY26 (Actual) Q3 FY25 (YoY) Change (%)

Net Profit ₹1,729.4 Cr ₹1,363.4 Cr +27%

Revenue ₹21,829.7 Cr ₹17,778.8 Cr +22.8%

EBITDA ₹3,915 Cr ₹2,895.2 Cr +35.2%

Sales Volume 33.85 MT 29.43 MT +15%

Market Outlook

With a domestic capacity now reaching 188.66 mtpa, UltraTech is positioned as the primary beneficiary of the government’s capital expenditure on roads, bridges, and urban development. While pricing pressures remain a challenge for the industry, analysts believe UltraTech’s scale and cost-optimization strategies provide a significant competitive moat.

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