For the three months to December 31, 2025, UltraTech Cement’s combined results were very good; net profit went up 26.8% to Rs 1,729.44 crore, and revenue increased 22.8% to Rs 21,829.68 crore. The company said that good sales growth, operating leverage, and margin expansion were the main things causing these better results.
Main financial figures and profit
Net profit rose to Rs 1,729 crore, compared to Rs 1,363 crore the year before – almost 27% more year on year. Revenue went up to Rs 21,830 crore, 23% up on the year before, as more cement was sent out and prices stayed firm. Investors following UltraTech Cement’s third-quarter earnings, and other companies in the same industry, are sure to notice these key numbers.
Operating EBITDA – earnings before interest, tax, depreciation and amortisation – went up 35% to Rs 3,915 crore, and operating margin went from 16.3% a year ago to 17.9%. Excluding the India Cements business, operating EBITDA per tonne was around Rs 140 better, at Rs 1,051, showing better cost control and the power to set prices.
The company took a one-off charge of Rs 88.48 crore because of the legal effects of new labour laws. Even with this, margins got wider, showing that the core business was doing much better in operations.
Sales, production ability and how each part of the business did
Sales growth was the most important thing in the quarter. Combined sales went up 15% year on year to 38.87 million tonnes (MT). Sales of grey cement within India rose 15.4% to 36.37 MT, and helped most of the increase in total revenue. Production use for the quarter was 77%, showing assets were used well with demand going up.
UltraTech started 1.8 mtpa of new production in the quarter, bringing total grey cement production in India to 188.66 mtpa. The India Cements business was also included in the combined numbers in the quarter, after the purchase made The India Cements Limited a subsidiary on December 24, 2024.
Looking at each part of the business, revenue from ready-mix concrete went up 26% year on year to Rs 1,848 crore. White cement revenue rose 5.6% to Rs 677 crore. Overseas revenue jumped 35% to Rs 1,194 crore, showing better demand outside India and better use of export routes.
The India Cements business added Rs 1,107 crore to revenue this quarter, showing the first effects of the purchase being added in. Experts will watch how the benefits of joining the two businesses grow, and how this affects margins per tonne in the future, and making the best of transport and buying.
Cost trends and operating leverage
How costs went helped margins to grow. Transport, fuel and power costs went down 4%, 2% and 15% from the year before, reducing pressure on margins. Raw material costs went up 6% year on year, partly cancelling out the gains from lower energy and transport costs.
Operating leverage – from higher sales – made margin gains bigger. The company showed better operating EBITDA per tonne and better use of fixed costs as sales went up. These improvements back up the idea that sales-led growth can increase profit in industries like cement, which need a lot of capital.
What will happen and what the risks are
UltraTech Cement’s third-quarter earnings were better than expected, driven by sales, margin expansion and early benefits from buying India Cements. On the demand side, continued spending on infrastructure and housing will be key to keeping sales growth going.
Risks include changes in raw material prices and swings in energy costs, which could lower margins if they get faster. Risks with joining the India Cements business, and how fast benefits from transport and buying can be realised, also need close watching.
Investors and people in the industry are likely to see this quarter as proof that UltraTech is making the most of size, working well and gaining market share. The company has made itself the leading company in the sector by giving strong revenue growth, a large EBITDA increase and careful adding of production ability.
