UltraTech Cement Reports Record FY26 Profit Despite Rising Costs

UltraTech Cement Posts Highest-Ever Annual Profit, Cites Strong Demand and Cost Discipline

India's largest cement maker, UltraTech Cement Ltd, has reported its highest-ever annual profit in fiscal year 2026 (FY26), driven by strong demand and cost discipline. The company's consolidated net profit stood at ₹8,165.64 crore, marking a 35.12% year-on-year (y-o-y) rise and crossing the ₹8,000 crore mark for the first time.

The Mumbai-based company's revenue rose 16.53% to ₹88,511.53 crore, surpassing a Bloomberg estimate of ₹88,410 crore based on 45 analysts. Earnings before interest, tax, depreciation and amortization (Ebitda) rose 36% to ₹17,020.23 crore in FY26. Consolidated domestic sales volumes for the fiscal stood at 145 million tonnes, up 8.4% from FY25.

UltraTech also reported strong fourth-quarter performance despite rising costs, with consolidated net profit and revenue rising 20.17% and 11%, respectively, to ₹2,982.76 crore and ₹25,799.47 crore. The company's capacity utilisation surged to 89%, driven by robust demand across housing, infrastructure, and commercial construction segments.

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The company's chief financial officer, Atul Daga, flagged caution on the evolving geopolitical situation heading into FY27, citing rising fuel and power expenses, as well as freight costs. However, he remains optimistic about the demand momentum continuing, citing government capex, infrastructure execution, and robust housing demand.

UltraTech expects double-digit growth in volumes in the current fiscal and will invest ₹10,000 crore in capital expenditure every year for the next 4-5 years. The company also plans to add 7.2 million tonnes capacity this fiscal and 29.8 million tonnes in FY28, taking its installed capacity to 200 million tonnes per annum (mtpa) in India.

In contrast, India's second-biggest cement maker, Adani Group's Ambuja Cements, has indicated it will prioritize profitability and capacity utilization over rapid expansion, and may defer its target of reaching 155 mtpa capacity by FY28.

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