UltraTech Cement reported a 19% rise in Q2 FY27 revenue to INR 233 billion, with EBITDA climbing to INR 37 billion. The company is pushing toward a 240 million tonnes annual capacity goal by FY28, though it continues to manage pressures from rising energy and raw material costs.
UltraTech Cement has reported its financial results for the second quarter of the 2027 fiscal year, showing consistent operational growth. The company’s consolidated revenue for the quarter stood at INR 233 billion, a 19% increase compared to the same period last year. Operating profit, or EBITDA, grew by 20% to reach INR 37 billion.
A key metric for investors in the cement sector is the EBITDA per tonne, which reflects how much profit the company makes for every unit of cement sold. For this quarter, UltraTech reported an EBITDA per tonne of INR 974, which is a 7% improvement over the previous year. This performance came in slightly ahead of analyst expectations, suggesting that the company is effectively managing its operational efficiency despite a difficult environment for input costs.
Following these results, analysts at Motilal Oswal maintained their earnings outlook for the company for fiscal years 2027 and 2028. The brokerage noted the company's ability to navigate headwinds, such as elevated energy and raw material expenses, which continue to affect the cement industry at large. The brokerage based its valuation models on an expected EV/EBITDA multiple for fiscal year 2028, setting a target price of INR 13,220.
Cement pricing trends have also provided some relief in the recent months. Data from September and October 2026 indicates that spot prices for cement have firmed up, showing a 5% increase compared to the average prices recorded during the second quarter. While this pricing trend helps margins, the company’s profitability remains sensitive to fluctuations in the cost of fuel and raw materials used in cement manufacturing.
Looking ahead, UltraTech Cement is maintaining its long-term strategy of capacity expansion. The company remains on track to reach a total capacity of 240 million tonnes per annum by fiscal year 2028. Management is currently in the process of evaluating the next stage of its organic growth, with more specific roadmaps for future projects expected to be shared by the end of fiscal year 2027. Additionally, the company is placing significant focus on growing its construction and wellness business unit to diversify its offerings and improve its long-term market share.
Investors may monitor the execution of these expansion plans and the sustainability of cement prices in the coming quarters. The company's ability to maintain its margin levels, while balancing high capital spending for growth, will be a critical factor in its future financial health.