UltraTech Cement's Q1 net profit falls 10 pc sequentially, revenue down 7.75 pc

Mumbai, July 21 (IANS) The Aditya Birla Group-owned cement company UltraTech Cement on Monday reported a net profit of Rs 2,220.91 crore in the April-June quarter (Q1) of current fiscal, down 10.26 per cent from Rs 2,474.79 crore in the previous quarter (Q4 FY25).

Revenue from operations also declined by 7.75 per cent, falling to Rs 21,275.45 crore in Q1 from Rs 23,063.32 crore in Q4, according to its stock exchange filing.

Similarly, total income dropped 7.38 per cent to Rs 21,455.68 crore, while total expenses were down 8.18 per cent to Rs 18,405 crore compared to the previous quarter.

However, when compared to the same quarter last year (year-on-year), the company showed strong growth.

Net profit jumped 49 per cent year-on-year (YoY) from Rs 1,493.45 crore, and revenue rose 17.7 per cent from Rs 18,818.56 crore in Q1 of the previous fiscal.

The improved annual performance was driven by a 9.7 per cent increase in sales volumes, reaching 36.83 million tonnes, helped by the recent integration of The India Cements Limited and the cement business of Kesoram Industries.

The company also saw stronger cement prices in southern and eastern markets due to rising demand in infrastructure and real estate, along with market consolidation.

UltraTech's EBITDA rose 44 per cent year-on-year to Rs 4,591 crore. Operating EBITDA per tonne improved to Rs 1,248, up Rs 337 from the same quarter previous financial year.

The operating margin stood at 21 per cent in Q1 FY26, compared to 16 per cent in the year-ago period, the company said in its filing.

Following the results, UltraTech Cement’s shares closed the Monday’s trading session at Rs 12,561, up by 0.5 per cent or Rs 63 apiece on the National Stock Exchange (NSE).

In last five days, the shares gave almost flat return of Rs 59 or 0.47 per cent, as per the official data.

Meanwhile, earlier this month, reports surfaced regarding a probe by the Competition Commission of India (CCI) into alleged cartelisation involving UltraTech Cement's subsidiary, India Cements.

The investigation stemmed from a complaint by ONGC, which accused several cement companies of colluding during its tendering process.

However, UltraTech Cement denied any such investigation. In a stock exchange filing on July 5, the company dismissed the media reports as “false and misleading.”

--IANS

pk/na