UltraTech Cement Q1 FY27 Results Analysis: Volume Growth Surges 13.1%, PAT Jumps 16.8% (ULTRACEMCO)

UltraTech Cement Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 24,648.20 Cr (+15.85% YoY) and PAT growth of +16.77% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

UltraTech Cement delivered strong Q1 FY27 results with 15.9% revenue growth and 16.8% PAT growth, driven by 13.1% volume growth that far exceeded the industry. The turnaround of India Cements from loss to profit and market share gains are key positives, though margin compression from rising other expenses and cost of materials remains a concern. The company is on track to meet its double-digit volume growth guidance for FY27.

Key Investment Insights

Key Positives

• Revenue grew 15.9% YoY to Rs.24,648 Cr, driven by 13.1% volume growth.
• PAT to Owners grew 16.8% YoY to Rs.2,599 Cr.
• Domestic grey cement volumes grew 13.1% YoY to 39.2 MnT, outperforming industry growth of 6-7%.
• India Cements turned around from a loss of Rs.183 Cr in Q1 FY26 to a normalized PAT of Rs.52 Cr.
• EBITDA per tonne improved from Rs.1,198 to Rs.1,214 YoY.
• Debt-Equity ratio improved to 0.27x from 0.30x YoY.
• Current ratio improved to 1.02x from 0.97x YoY.
• Net Worth grew 9.6% YoY to Rs.83,432 Cr.
• Green power mix reached 47%, up from 39.5% YoY.
• Special dividend of Rs.240/share declared for FY26.

Risk Factors

• Other Expenses grew 24.6% YoY, rising 90 bps as a % of revenue to 12.95%.
• PBIDT margin declined 70 bps YoY to 20.88%.
• Cost of Materials rose 62 bps as % of revenue to 16.75%.
• Contingent liabilities of Rs.1,804 Cr from CCI penalties remain unresolved, though stayed by Supreme Court.
• Income tax demand of Rs.809 Cr for AY 2023-24 under appeal.
• Capex of Rs.9,000-10,000 Cr/year may increase leverage, though current D/E of 0.27x provides headroom.