- UltraTech Cement’s net income for the first quarter reached 22.26 billion rupees, marking a 49% increase year over year, but fell short of the estimated 22.51 billion rupees.
- Revenue grew by 13% year over year to 212.8 billion rupees, which was slightly below the forecasted 215.06 billion rupees.
- Total costs rose 8% year over year, amounting to 184.1 billion rupees.
- Raw material costs surged by 21% year over year to 34.3 billion rupees, below the estimated 38.65 billion rupees.
- Power and fuel expenses increased slightly by 1.5% to 48.6 billion rupees, also below the estimate of 49.82 billion rupees.
- Freight and forwarding expenses grew by 5% year over year to 46.5 billion rupees, missing the estimated 47.71 billion rupees.
- Other income increased by 6.5% to 1.80 billion rupees.
- Profit before depreciation, interest, tax, and other income climbed 44% year over year to 45.9 billion rupees.
- UltraTech Cement expanded its grey cement capacity by 3.5 million tonnes per annum (mtpa) in Q1 FY26, reaching a total capacity of 192.26 mtpa.
- The company’s expansion program is on track, enhancing efficiency and addressing debottlenecking opportunities across various sites.
- Prior year numbers have been restated to include the cement business of Kesoram.
- Market analysts provide 38 buy recommendations, 4 hold recommendations, and 4 sell recommendations for UltraTech Cement.
Ultratech Cement on Smartkarma
Analysts on Smartkarma have provided insightful coverage of Ultratech Cement, offering contrasting perspectives on the company’s future outlook.
Rahul Jain, with a bearish lean, highlighted in his report “Strong Volumes Offset by Declining Margins and Capital Efficiency at UltraTech” that Ultratech’s FY25 EBITDA growth was primarily volume-driven. Jain pointed out the flat realizations and initial dilution from acquisitions that led to EBITDA per ton declining to Rs988. Despite these challenges, Ultratech plans to invest Rs1,800 crore in the cables and wires segment for a December 2026 launch, driving expectations of sustained volume growth and operational efficiency gains.
On the other hand, Nimish Maheshwari, taking a bullish stance, provided a positive view in the report “Event Driven: UltraTech’s Bold Foray into Wires & Cables 80,000+ Cr Market“. Maheshwari highlighted Ultratech Cement‘s strategic move to enter the 80,000+ crore wires & cables market with a significant investment. This bold step positions UltraTech as a diversified building materials leader with the potential to disrupt the industry through its financial strength, backward integration, and superior product quality, reshaping competition in the market.
A look at Ultratech Cement Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ultratech Cement, a leading producer of cement products, is positioned with a balanced outlook based on the Smartkarma Smart Scores. With a solid score of 4 in Momentum, the company shows promising potential for future growth and performance. Its Value, Dividend, Growth, and Resilience scores all sit at a respectable 3, indicating a stable foundation across key factors. These scores suggest that Ultratech Cement is well-rounded in terms of investment potential, showcasing reliability and room for development in the long term.
Ultra Tech Cement Ltd., a subsidiary of Larsen & Toubro, operates as an independent entity under the majority ownership of Grasim Industries. The company’s Smartkarma Smart Scores highlight its overall positive outlook, particularly noting its strong momentum. With a focus on maintaining value, dividends, growth, and resilience, Ultratech Cement appears well-positioned to navigate the market dynamics and capitalize on future opportunities in the cement industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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