Ultratech Cement (UTCEM IN) – Q1FY27 Result Update – Superior execution again; East to drive demand upcycle – BUY
Published on 21 Jul 2026
UltraTech Cement (UTCEM) reported inline Q1FY27 operating performance led by healthy volume growth and improved pricing. Cons. volumes grew 12% YoY to 41.3mt supported by strong housing and rural demand, while average blended realization improved 3.4% QoQ led by increase in cement prices across regions and full integration of acquired brands. On the cost front, raw material costs declined despite higher industrial diesel and limestone raising costs, while power & fuel costs declined due to lower pet coke mix. Freight costs remained stable led by reduction in lead distance, while other expenses increased due to higher packaging costs. Resultant, EBITDA/t stood at INR1,214 (PLe INR1,209). India Cements EBITDA/t improved further to INR604, as brand integration of both India Cements and Kesoram is fully completed aiding cons NSR and UTCEM brand volume sales growing at 21% YoY. We maintain our FY27/28E EBITDA estimate and expect UTCEM’s volume/EBITDA to deliver a CAGR of 11%/17% over FY26-28E. The stock is trading at EV of 15.7x FY28E EBITDA. Maintain ‘BUY’ with TP of INR13,832 valuing at same 18x EV of Mar’28E EBITDA.
