UltraTech Cement Q3 Profit Soars 27% to ₹1,729 Crore

Introduction

UltraTech Cement, the flagship company of the Aditya Birla Group, announced a strong financial performance for the third quarter of fiscal year 2026. The company reported a consolidated net profit of ₹1,729.44 crore for the quarter ending December 31, 2025. This represents a significant 26.8% increase compared to the ₹1,363.44 crore profit recorded in the same period of the previous fiscal year. The performance, which surpassed analyst expectations, was driven by robust sales volumes, improved operational efficiencies, and successful integration of recent acquisitions.

Detailed Financial Performance

The building materials giant posted impressive growth across key financial metrics. Revenue from operations for the quarter climbed 22.8% to ₹21,829.68 crore, up from ₹17,778.83 crore in the corresponding quarter last year. This growth highlights the sustained demand for cement and building materials in the market. The company's operational strength was evident in its earnings before interest, taxes, depreciation, and amortization (EBITDA), which stood at ₹3,915 crore, a substantial 35% year-on-year jump. Consequently, the operating margin expanded by 200 basis points to 18%, compared to 16% in the year-ago period.

Operational Highlights and Volume Growth

UltraTech's strong financial results were underpinned by healthy growth in sales volumes. The company achieved consolidated sales of 38.87 million tonnes (MT), marking a 15% year-on-year increase. Domestic grey cement volumes saw a parallel growth of 15.4%, reaching 36.37 MT. This volume growth contributed to an improved capacity utilisation rate, which stood at 77% for the quarter, up from 72% in the same period last year. The operating EBITDA per tonne also improved to ₹1,051 from ₹911 in the previous year, indicating better cost management and operational leverage.

Key Financial Metrics: Q3 FY26 vs Q3 FY25

Strategic Capacity Expansion

Continuing its growth trajectory, UltraTech commissioned 1.8 million tonnes per annum (mtpa) of new capacity during the quarter. This included a 0.6 mtpa grinding unit at Dhule, Maharashtra, and a 1.2 mtpa integrated unit at Nathdwara, Rajasthan. These additions have increased the company's total domestic grey cement capacity to 188.66 mtpa. The company has outlined a further expansion plan to add 22.8 mtpa through a mix of brownfield and greenfield projects, which will take its total capacity to 240.76 mtpa, reinforcing its market leadership.

Corporate Developments and One-Time Impacts

The quarter was also marked by significant corporate activities. The India Cements Limited officially became a subsidiary of UltraTech effective December 24, 2024, following the acquisition of a controlling stake. The company's financial statements for the quarter also included an exceptional item of ₹88.48 crore. This charge was related to the statutory impact of the new labour codes, specifically for additional gratuity and leave encashment obligations, which became effective in November 2025.

Market Position and Future Outlook

With its latest capacity additions, UltraTech Cement solidifies its position as the largest cement producer in India and the second-largest globally, excluding China. The company's strategic investments are not limited to cement; its foray into the cables and wires business is progressing as planned, with a targeted launch in Q3 FY27. On the sustainability front, UltraTech added 14 MW of Waste Heat Recovery System (WHRS) capacity, bringing its total WHRS capacity to 383 MW. Green power now constitutes 42.1% of the company's total power mix, reflecting its commitment to sustainable operations.

Conclusion

UltraTech Cement's third-quarter results for FY26 demonstrate a period of strong, well-rounded growth. The company successfully navigated market dynamics to deliver higher revenue, improved profitability, and increased sales volumes. With ongoing capacity expansion, strategic acquisitions, and diversification into new business segments, UltraTech is well-positioned to capitalize on future infrastructure and construction demand. The company's focus on operational efficiency and sustainability further strengthens its long-term outlook.