UltraTech Cement Limited Sponsored GDR RegS

UltraTech said Q1 FY27 was its highest-ever first quarter across volumes, revenues, EBITDA, and profit. Domestic grey cement volumes grew 13.1%, capacity utilization improved to 81% from 76%, EBITDA was INR 5,146 crore, PAT was INR 2,604 crore, revenues grew 16%, and profits rose about 17.2% year over year. Operating EBITDA per ton remained above INR 1,200. Management guided to industry volume growth of about 7%–8% for the monsoon quarter, said its own FY27 grey cement volumes are targeted to grow double digits, and expects the July-September quarter cost to rise by INR 130–INR 140 per tonne sequentially. Net debt-to-EBITDA ended the quarter at 0.87x versus 0.94x at the start of the year, and management expects to end FY27 below 1x.

Atul Daga’s tone was very confident and expansive, framing UltraTech as a demand-led growth story with strong brand equity, broad distribution, and visible market-share gains. He emphasized that India’s infrastructure, housing, and urban real estate pipeline remains rich, and repeatedly argued that UltraTech is growing like a challenger rather than an incumbent. He also highlighted brand migration at India Cements and Kesoram, saying those businesses are being converted into UltraTech-branded volumes faster than planned.

Daga focused on cost, capital allocation, and balance-sheet discipline. He said fuel and packing costs were key Q1 pressures, with fuel rising from INR 874 to INR 915 per tonne and packing bags averaging INR 12 versus INR 9 earlier, but UltraTech still held EBITDA per ton above INR 1,200. He noted renewable power met 47% of power needs at quarter-end, lead distance fell to 360 km, net debt/EBITDA improved from 0.94x to 0.87x, and all growth capex is being funded through internal accruals. He also said operating cash flow will be plowed back into cement growth and that dividends remain part of capital allocation.

Analysts pressed on capital allocation, India Cements integration, cost inflation, and whether pricing can hold if input costs fall. Management said cash flows are already fully committed to cement growth and dividends, with no further investment planned in Cables & Wires beyond the current program, and that India Cements should be ready for completion of the journey around Q4 FY28 or earlier after capex and non-core asset sales. On costs, Daga said the July-September quarter should see a sequential increase of INR 130–INR 140 per tonne, driven by maintenance, fuel, and some operating deleverage, and that H2 should improve if war-related freight and energy pressures ease. On pricing, he said prices move with demand and do not necessarily fall just because costs decline.