Ultratech Cement (UTCEM IN) – Q4FY26 Result Update – Pricing led beat; best in class execution – BUY
Published on 28 Apr 2026
UltraTech Cement (UTCEM) reported strong Q4FY26 operating performance led by improved pricing and healthy volume growth. Cons volumes grew 9% YoY on a high base to 44.7mt supported by strong housing and rural demand, while average blended realisation improved 2.7% QoQ led by increase in cement prices and brand transitions during the quarter. Brand integration of India Cements and Kesoram completed ahead of schedule in Mar’26. On the cost front, raw material costs increased on account of higher clinker conversion driven by higher volumes, while power and fuel costs were partly offset by a higher renewable energy mix. Freight costs remained stable led by reduction in lead distance, while other expenses increased due to higher packaging costs. Resultantly, EBITDA/t stood at INR1,253 (PLe INR1,088). Cost efficiency savings of ~INR185/t achieved till date, with INR300/t+ targeted by FY28. Maintain ‘BUY’ with revised TP of Rs13,835 (earlier Rs13,765) valuing at same 18x EV of Mar’28E EBITDA.
