UltraTech Cement profit lags forecasts as input costs climb
India's largest cement maker by capacity posted a 21.3% profit rise, short of analyst estimates, as raw material costs jumped 24%.
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what happened
Reuters reported that UltraTech Cement, India's biggest cement maker by capacity, delivered a second-quarter profit gain smaller than analysts had anticipated. Net profit grew 21.3% year on year, reaching 14.94 billion rupees, or $157.4 million, in the July-to-September period. That fell short of the 17.05 billion rupee consensus compiled by LSEG.
Costs outpaced sales during the quarter: total expenses rose 17.8%, while raw material bills surged 24%. EBITDA per ton improved by 60 rupees to 974 rupees. Domestic grey cement volumes climbed 13.8% to 35.94 million metric tons, helped by a weak base last year and a revival in capital spending. Revenue rose roughly 18.8% to 232.95 billion rupees ($2.45 billion), ahead of the 223.78 billion rupee market estimate.
Shares slipped 2.3% to 10,662 rupees after the release. Producers raised prices in September to offset dearer fuel, and Macquarie expects another round of increases once the festive season ends.
why it matters
The figures suggest Indian cement makers are still struggling to pass fuel and input inflation on to customers, keeping margins under pressure even as demand strengthens. Expected price increases after the festive period will be a key factor for the sector's earnings outlook. The rupee traded at about 94.93 per dollar at the time of reporting.
market impact
Indian cement stocks: costs rising faster than revenue, pressure on margins
tags
instruments
sources
- India's UltraTech Cement misses profit estimates — Reuters, 19 October 2026 at 08:23 UTC
- India's UltraTech Cement misses profit view as higher costs weigh — Reuters, 19 October 2026 at 08:50 UTC
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