UltraTech Cement Q1 Review: BofA Hikes Price Target — But Is the Stock a Buy Now?
UltraTech Cement's profit rose 49% year-on-year to Rs 2,226 crore in Q1, which met the analysts estimate of Rs 2,251 crore, tracked by Bloomberg.
UltraTech Cement Ltd. reported a strong execution and expected to witness tailwinds such as cost improvements, volume share gains, and earnings compounding over multiple years, brokerages said, after the country's largest cement maker by market capitalisation reported its results for the first quarter of the financial year ending March 2026 on Monday.
The billionaire Kumar Mangalam Birla-led company's profit rose 49% year-on-year to Rs 2,226 crore during the April-June period, according to its notification to the exchanges. That met the analysts estimate of Rs 2,251 crore, tracked by Bloomberg. UltraTech’s sales volumes for the June quarter reached 36.83 million metric tonnes, representing a 9% increase from the year-ago period.
UltraTech Cement Q1 Results Key Highlights (Consolidated, YoY)
Revenue rose 13% to Rs 21,275.45 crore versus Rs 18,818.56 crore (Bloomberg estimate: Rs 21,506 crore).
Ebitda up 46.2% at Rs 4,410.34 crore vs Rs 3,017.1 crore (Est: 4,408.6 crore)
Margin at 20.7% vs 16% (Estimate: 20.08%).
Net profit rose 49% to Rs 2,226 crore versus Rs 1,494.82 crore (estimate: Rs 2,251 crore).
Here's what brokerages had to say after UltraTech Cement announced their Q1 results.
BofA On UltraTech
BofA maintained a buy call on UltraTech Cement following its June quarter earnings while hiking the target price to Rs 14,440 from Rs 12,300. The brokerage firm labelled the cement giant’s quarterly performance as a ‘mixed bag’ due to soft volumes. However, it highlighted good execution on profitability.
Regarding volumes, BofA expects the soft growth to persist throughout the ongoing financial year even as UltraTech operates with the additional firepower of India Cements Ltd. and the cement business of Kesoram Industries.
BofA did highlight that UltraTech has seen a good start to the turnaround of these acquired assets while pricing is also trending favourably for the company.
Morgan Stanley On UltraTech
Morgan Stanley maintained an overweight call on UltraTech, with an unchanged target price of Rs 14,000. The brokerage firm highlighted strong execution for the Aditya Birla Group company and is expecting several tailwinds, including cost improvements and volume share gains.
Morgan Stanley also sees UltraTech Cement as a strong earnings compounder over multiple years and has labelled it as the preferred stock to play the cement space.
