UltraTech Cement reported a 21.3% year-on-year increase in consolidated net profit for the quarter, reaching approximately ₹1,494 crore compared with ₹1,232 crore in the same period last year. Revenue from operations grew 18.8% to ₹23,295 crore.
Despite the growth in earnings and sales, the company’s results fell short of market expectations, putting pressure on its share price.
Cement Sales Volumes Increase
Domestic grey-cement sales volumes rose 13.8% to 35.94 million tonnes, supported by improved construction-related demand and activity in the capital expenditure cycle.
Operating profit before interest, depreciation and tax increased 17.3% to ₹3,832 crore. The company’s operating performance benefited from higher sales volumes, although rising costs remained a challenge.
Rising Raw Material Costs Remain a Concern
The company faced pressure from higher input costs during the quarter. Total expenses increased 17.8% year-on-year, while raw material costs rose 24%.
Cement producers have been raising prices to offset cost increases. Cement prices reportedly increased by ₹6–₹7 per bag during the second half of September.
UltraTech Shares Come Under Pressure
Following the earnings announcement, UltraTech Cement shares fell from their intraday high. The market reaction reflected concerns that rising expenses had limited the benefit of higher revenue and sales volumes.
Investors will be watching whether further price increases and stronger construction demand can help protect profitability in coming quarters. Although the company delivered year-on-year growth, higher costs and the gap between reported profit and market expectations remain important considerations.
