UltraTech Cement Q2 profit rises 21% as sales grow 19%

UltraTech Cement Limited (NSE: ULTRACEMCO) reported Q2 FY27 consolidated net profit of ₹1,494 crore, up 21.3% YoY. Revenue from operations increased 18.8% to ₹23,295 crore, supported by strong cement demand and higher sales volumes. However, profit fell short of market expectations. Key Highlights • Domestic grey cement sales volumes grew 13.8% to 35.94 million tonnes. • Raw material costs increased 24% YoY, putting pressure on profitability. • Total expenses rose 17.8% YoY. • Operating EBITDA reached ₹974 per tonne. • Domestic cement capacity stood at 204.7 million tonnes per annum at September-end. My View UltraTech's volume growth indicates healthy demand, supported by improving construction and infrastructure activity. However, the 24% increase in raw material costs highlights an important concern. Despite strong revenue growth, higher input costs prevented the company from meeting profit expectations. The key positive is its scale and capacity expansion, which could help UltraTech capture additional demand as infrastructure spending and construction activity strengthen. I believe pricing power will be more important than volume growth alone over the coming quarters. What I'm Watching Next I will monitor cement price increases after the festive season, EBITDA per tonne and whether raw material inflation begins to moderate. Sustained volume growth alongside improving realisations would indicate stronger earnings potential. Stance: Cautiously positive on long-term demand and market position, but near-term profitability will depend on cost control and pricing improvements. Disclosure: I do not have any holding or position in the stock mentioned above.