UltraTech Cement Q2 FY27 Results: Profit Rises 21%

Strong earnings lift UltraTech Cement shares

UltraTech Cement shares rose 3% after the company reported its Q2 FY27 earnings. The quarter ended on 30 September 2026, and the company filed its results presentation on 19 October 2026. The reported performance showed growth in profit, net sales and cement volumes. The company said brand-led volume growth helped counter softer monsoon-related demand conditions. Higher fuel costs remained an important cost pressure during the quarter. Management also highlighted an improvement in cement prices during the second half of September.

Profit and sales growth in Q2 FY27

The supplied results summary states that consolidated net profit increased 21% year-on-year to Rs 1,494 crore. Another figure in the company presentation material places profit after tax at Rs 1,501 crore, up 21.3% year-on-year. Consolidated net sales were reported at Rs 23,024 crore, equivalent to Rs 230,240 million, up 18.9% year-on-year. Net sales were, however, 5.9% lower sequentially. The source material also cited revenue of Rs 23,295 crore, creating a difference from the stated net sales figure. The figures below use the specifically reported consolidated net sales amount of Rs 23,024 crore.

Volumes remained ahead of industry estimates

Consolidated sales volume rose 12.9% to 3.82 crore tonnes, according to the results presentation. The earnings call also described quarterly volume growth of 13.8%. Management said industry cement demand was estimated to grow close to 10% year-on-year. UltraTech said its growth was ahead of that industry estimate. Capacity utilisation improved to 71%, compared with 66% in the previous year. Management said it could have sold more cement if additional capacity had been available.

Key Q2 FY27 financial and operating data

Cement prices turned higher in September

Chief Financial Officer Atul Daga said average trade prices for the September quarter were broadly stable compared with the June quarter. The quarterly average was 1% to 1.5% lower, mainly because of softer pricing in August. In the second half of September, prices moved up by 7% to 10% per bag month-on-month. October spot prices were about 5% above the September-quarter average. The company expects further price increases in the coming months. Management said the full effect of recent price hikes is expected to be reflected in December-quarter earnings.

Fuel costs remain a key issue

The company linked the cost pressure to higher fuel prices amid a renewed West Asia conflict. Management said fuel and raw material costs increased about 13%, or 3% quarter-on-quarter. Fuel cost per bag rose from Rs 45 to Rs 51.50. Fuel rates were said to have climbed to about Rs 2.09 per Kcal. These cost movements explain why cement pricing remains central to the company’s near-term operating performance. Higher trade prices could help absorb part of the increase, but their benefit will depend on how sustained those prices are.

Regional demand supported market presence

UltraTech reported strong growth across several markets during the quarter. The company said northern markets expanded in high double digits, with its own growth above 20% in the region. Growth in southern markets was stated at 15% to 20%. The east grew around 5%, while west and central markets were each closer to 10%. The regional data indicates that demand was not uniform across India. Yet the company’s overall volume growth remained above the industry estimate cited by management.

Capacity additions support expansion plans

UltraTech commissioned 4.6 million tonnes of capacity in September. This took domestic cement capacity to 204.7 million tonnes. The addition included 3.6 million tonnes of greenfield capacity in Andhra Pradesh and 1 million tonnes of debottlenecking at three other units. The supplied material refers to the Andhra project as Petnikota in one instance and Pendekallu in another. Management reiterated that the company remains on track to reach 240 million tonnes of capacity. The added capacity is important because management said capacity availability constrained potential sales growth during the quarter.

Renewable power mix continues to rise

During the quarter, UltraTech added 116 megawatts of renewable power and 10 megawatts of waste heat recovery capacity. Non-fossil sources met 47% of the company’s power requirements, according to the earnings call. The company also commissioned alternative fuel and raw material systems at two plants. Its thermal substitution rate reached about 7.2%. These operational additions form part of the company’s effort to raise the share of lower-carbon energy sources. They also matter in a period when fuel costs have increased.

Market impact and investor focus

The 3% rise in UltraTech Cement shares followed a quarter in which profit grew more than 21% and volumes outpaced the company’s cited industry demand estimate. Investors will likely track the extent to which September and October price increases feed into the December-quarter results. Fuel-cost movements will remain equally relevant because they increased during the September quarter. Capacity commissioning gives UltraTech more scope to serve demand, especially after management said it could have sold more cement with additional availability. The company’s next earnings update should provide further evidence on pricing, demand and the progress of its capacity plan.

Conclusion

UltraTech Cement’s Q2 FY27 update combined higher profit, stronger volumes and fresh capacity additions. The company expects recent cement price increases to have a fuller effect in the December quarter, while fuel costs remain an operating challenge.