UltraTech Cement Ltd Quarterly Results Q4 FY 25 stock analysis

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Sector Outlook: Positive

Strong volume growth drives profitability

UltraTech Cement reported strong numbers for the March 2025 quarter. The company’s revenue rose to ₹23,063 crore, up 29.7% from the previous quarter and 13% from last year. Cement sales volume reached 41.02 million tonnes, up 42.4% quarter-on-quarter and 16.9% year-on-year, driven by higher demand. The average price per tonne was ₹5,052 — slightly higher than the last quarter but lower than a year ago.

Operating costs increased due to higher sales. Raw material, logistics, power, and other expenses went up. Despite this, the company delivered an EBITDA of ₹4,618 crore, up 59.5% QoQ and 12.3% YoY, meeting market expectations. Net profit stood at ₹2,475 crore, up 81.5% QoQ but down 9.6% YoY.

UltraTech added new cement and clinker capacity and improved its use of green power, now covering 35.7% of its energy needs. The company also announced a dividend of ₹77.50 per share, pending approval.

Key Concall Highlights

Capacity Expansion:
India’s cement industry capacity has grown to 655 million tonnes, up from 625 million. Out of this 30 million tonne increase, UltraTech alone added 57%. After acquiring Kesoram’s cement units in Telangana and Karnataka (fully taken over from 1 March 2025), UltraTech’s total capacity rose from 140 to 184 million tonnes.

India Cements:
In March 2025, India Cements crossed 1 million tonnes in monthly sales for the first time. The plan is to improve profits per tonne — aiming for ₹500 in FY26, ₹800 in FY27, and over ₹1,000 later. India Cements is expected to gradually rebrand as UltraTech by FY27.

CapEx Plans:
UltraTech has set aside ₹1,500 crore for India Cements, mainly for waste heat recovery systems (WHRS) and other upgrades, with returns expected in under 3 years. It spent ₹9,000 crore in FY25 and plans ₹9,000–₹10,000 crore in FY26.

Cost Optimization:
Fuel prices rose early in the quarter but later stabilized. The company improved efficiency by optimizing logistics, expanding WHRS, adding renewable energy capacity, and using alternative fuels. UltraTech is targeting ₹300/ton in cost savings by FY27, with ₹86/ton already achieved in FY25.

Other Updates:
Cement demand in India grew by 4% in Q4FY25, while UltraTech’s volumes grew by nearly 10%. Prices improved in April 2025 compared to March. The company also strengthened its white cement business by acquiring a putty plant.

Valuation and Outlook

UltraTech Cement delivered a strong performance this quarter, led by higher sales volumes and better operational efficiency. While prices were slightly lower than last year, good capacity use and a strong mix of premium products helped improve profit margins compared to the previous quarter.

The company is quickly expanding its capacity through new plants and recent takeovers of India Cements and Kesoram, strengthening its leadership position as cement demand stays healthy, driven by infrastructure, housing, and rural projects.

Looking ahead, UltraTech’s focus on green energy, plant efficiency, and digital upgrades should help protect its profits, even with cost changes. Some short-term challenges may come from pricing pressure and higher costs in southern India due to taxes, but the long-term outlook is strong. With plans to expand capacity beyond 210 million tonnes by FY27, UltraTech is well-placed to stay ahead in the market with its scale, efficiency, and future-ready approach.