UltraTech Cement’s Q2 FY26 earnings were in line with our estimates. Ebitda grew ~53% YoY to Rs 30.9 billion. Ebitda/tonne increased ~32% YoY to Rs 914 (estimated Rs 951). Operating profit margin expanded 3.3pp YoY to ~16% (vs our estimate of ~17%). PAT increased ~75% YoY to Rs 12.3 billion.
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Motilal Oswal Report
UltraTech Cement Ltd.’s Q2 FY26 Ebitda was in line with our estimates as better-than-expected realization was offset by higher-than-estimated opex/tonne.
The company’s volume growth was above our estimates. Management indicated that the integration and brand transition of Indian Cement and Kesoram are progressing well. UltraTech’s brand growth stood at 13.2% YoY in Q2 FY26.
The company’s market share currently stands at ~28% and will rise to ~32-33% in the next three years.
We estimate a CAGR of 13%/23%/27% in consolidated revenue/Ebitda/PAT over FY25-FY28. We estimate its consolidated volume CAGR at ~11% and Ebitda/tonne of Rs 1,090/Rs 1,206/Rs 1,260 in FY26/FY27/FY28E vs Rs 924 in FY25.
UltraTech’s improved earnings, return ratios, and low-cost expansions warrant a higher valuation multiple. We value UltraTech at 20x Sep’27E EV/Ebitda to arrive at our target price of Rs 14,460. Reiterate Buy.
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