Ultratech Cement (UTCEM IN) – Q3FY26 Result Update – Superior volume driven performance – BUY
Published on 25 Jan 2026
The management remains positive about cement demand growth over the next few years due to GoI’s incremental focus on building infrastructure and mobility transformation across regions. UTCEM’s increasing focus on South over the past few years is yielding results, with the region witnessing higher institutional demand. The management expects healthy demand momentum to continue in the next 4-5 months aiding utilization levels. Ongoing efficiency initiatives, incl. lead distance reduction, improving clinker conversion and rising RE usage, continue to progress well and are expected to support margins. We raise our FY27/28E EBITDA estimate by ~3%/7% incorporating higher pricing. We expect UTCEM’s volume/EBITDA to deliver a CAGR of 12%/27% over FY25-28E. The stock is trading at EV of 17.3x/14.5x FY27E/28E EBITDA. Maintain ‘BUY’ with revised TP of Rs14,168 (earlier Rs13,625) valuing at same 18x EV of Sep’27E EBITDA.
