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UltraTech Cement Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤24th Jan 26

Summary : UltraTech Cement reports strong Q3FY26 growth, driven by capacity expansion and improved operational efficiency, despite one-time labour code expenses.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expenses Q3FY26: Rs. 19,588.54 crores.
  2. Consolidated Total Expenses 9M FY26: Rs. 56,113.29 crores.
  3. Consolidated Bad debts to Account receivable ratio Q3FY26: 0.02%.
  4. Consolidated Revenue from Operations Q3FY26: Rs. 21,829.68 crores.
  5. Consolidated Revenue from Operations 9M FY26: Rs. 62,712.06 crores.
  6. CCI penalties of Rs. 1,804.31 crores and Rs. 68.30 crores.
  7. Pending arbitration for Series A RPS redemption.
  8. Consolidated Net Worth Q3FY26: Rs. 77,721.12 crores.
  9. Consolidated Debt-Equity ratio Q3FY26: 0.30 times.
  10. Consolidated Total Debts to Total Assets ratio Q3FY26: 17%.
  11. Both standalone and consolidated financial results are presented.
  12. Consolidated results include subsidiaries, associates, and joint ventures.

Corporate Overview

  1. India (Maharashtra, Rajasthan).
  2. UAE.
  3. Exceptional expense due to new Labour Codes.
  4. CCI penalties under appeal, no provision recognized.
  5. Pending arbitration for Series A RPS redemption.
  6. Engaged in manufacturing, marketing, distribution of building materials.
  7. Cement flagship company of Aditya Birla Group.
  8. Largest cement company globally by sales volume.
  9. Second largest by capacity, excluding China.
  10. Strong performance delivered quarter after quarter.
  11. Positive outlook on growth and expansion plans.
  12. Confident in meeting committed launch timelines for new businesses.
  13. Committed to environmental conservation measures.
  14. Domestic grey cement markets.
  15. Sales volumes from India Cements.
  16. Overall capacity utilisation at 77% for the quarter (vs 72% last year).
  17. Domestic grey cement capacity at 188.66 mtpa.
  18. Global capacity reached 194.06 mtpa.
  19. White cement/putty capacity at 3.2 MTPA.
  20. Commissioned 0.6 mtpa cement capacity at Dhule.
  21. Commissioned 1.2 mtpa cement capacity at Nathdwara.
  22. Next phase to add 22.8 mtpa capacity (brownfield/greenfield).
  23. Targeting 240.76 mtpa total capacity post-expansion.
  24. Cables and Wires business on track for Q3 FY27 launch.

Risk Factors

  1. Significant CCI penalties under appeal.
  2. New Labour Codes create exceptional expense.
  3. Arbitration pending for preference shares redemption.
  4. Integration of acquired assets ongoing.

Key Drivers

  1. Net sales grew 23% year-on-year.
  2. Capacity utilization improved to 77%.
  3. Major capacity expansion plans on track.
  4. Net debt/EBITDA ratio significantly reduced.

Auditor’s Report

  1. Limited Review Report, conclusion not modified on matters.
  2. Unmodified conclusion on consolidated audited financial results for year ended 31 March 2025.
  3. Restatement of financial results due to Kesoram merger.
  4. CCI penalties and related legal proceedings.
  5. Financial results of subsidiaries/associates reviewed by other auditors.
  6. Restatement of consolidated financial results due to Kesoram merger (Note 4).
  7. Appeals against CCI orders and non-provisioning of penalties (Note 9).

Board Commentary

  1. CCI penalties (Rs. 1,804.31 crores and Rs. 68.30 crores).
  2. Pending arbitration for Series A Redeemable Preference Shares.
  3. Statutory impact of new Labour Codes recognized as exceptional item.
  4. Appeals against CCI orders pending in Supreme Court.
  5. Arbitration proceedings ongoing for Series A RPS redemption.
  6. Ongoing capex program of Rs. 2,357 crores.
  7. Commissioned 1.8 mtpa cement capacity.
  8. Next phase of expansion to add 22.8 mtpa capacity.
  9. Cables and Wires business project progressing as scheduled.

Corporate Governance

  1. Audit Committee reviewed and approved the results.

Management Discussion & Analysis

Future Strategy

  1. Aggressive capacity expansion through brownfield and greenfield projects.
  2. Integration and brand transition of acquired assets.
  3. Launch of Cables and Wires business by Q3 FY27.
  4. Targeted profitability for India Cements in line with holding company.

Industry Overview

  1. Positive outlook for building materials sector, driving expansion.

Macroeconomic Outlook

  1. Implementation of new Labour Codes effective 21st November 2025.

Operational Focus Areas

  1. Enhancing environment conservation measures.
  2. Improving efficiency and productivity across operations.
  3. Integrating acquired assets for quality and logistics.

Performance Drivers

  1. 23% growth in consolidated net sales.
  2. Improved capacity utilization to 77%.
  3. 29.4% growth in domestic grey cement markets.
  4. Operating EBITDA per ton improved to Rs. 1,051.
  5. Reduced net debt/EBITDA to 1.08x.
  6. India Cements sales volumes grew 25%.

Risk Control Measures

  1. Appeals filed against CCI orders with Supreme Court stay.
  2. Legal opinions support non-recognition of CCI penalty provision.
  3. Deposited 10% of CCI penalty amount.

Critical Risks

  1. Uncertainty regarding CCI penalty appeals.
  2. Financial impact of new Labour Codes.
  3. Pending arbitration for Series A RPS redemption.