UltraTech warns of prolonged cost pressure as West Asia crisis drags on
India's largest cementmaker UltraTech expects fuel and freight costs to stay high, and its quarterly profit missed analyst estimates.
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what happened
India's largest cement producer, UltraTech Cement, said rising prices of petcoke, industrial diesel and freight will keep squeezing margins for longer than it had expected. CFO Atul Daga said the outcome of the West Asia conflict is hard to predict and costs may keep climbing.
UltraTech's consolidated net profit for the September quarter rose 21.3% to Rs.1,493.77 crore but fell short of the Bloomberg consensus of Rs.1,604.1 crore. Revenue grew 18.8% and domestic grey cement volumes rose 13.8%. The company is offsetting costs with price increases, which firmed in late September.
why it matters
Analysts at Investec and InCred estimate cement prices may need to rise by roughly Rs.10 to 15 per bag to offset the cost increases. Smaller producers with fewer cost-saving tools could face greater pressure, which matters for the sector as a whole.
market impact
Indian cement sector: higher input costs pressure margins, especially for smaller producers
tags
instruments
sources
- UltraTech flags prolonged cost pressure as West Asia crisis keeps fuel prices volatile — Moody's, 19 October 2026 at 19:20 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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