UltraTech Cement Q2 FY27 revenue rises 13%

reported its Q2 FY27 financial results, posting consolidated revenues of Rs 23,295 crore and cement sales volumes of 38.2 million tonnes. The company maintains an Overweight rating with a valuation of 15x FY28 EV/EBITDA. What happened: Consolidated revenue rose 13 percent year on year, supported by a 13 percent increase in grey cement sales volumes to 38.2 million tonnes. Realisations improved by 2 percent year on year due to a better product mix. However, rising input costs restricted the growth in EBITDA per tonne to 2 percent. Fuel costs increased 14 percent, raw materials rose 6 percent, and packing bag costs surged 30 percent. Net debt to EBITDA rose to 1.26x in September 2026 compared to 0.94x in March 2026 following higher capital expenditure and dividend payments. Why it matters: While strong housing and commercial construction demand in the west, central, and north drove volume growth, input cost inflation prevented earnings from tracking top-line growth. The company has diversified into the wires and cables segment through its Ultra Volt brand, investing Rs 1,100 crore of an earmarked Rs 1,800 crore capex. Meanwhile, green power capacity has reached 2.0 GW, with management targeting an 85 percent green energy share in the power mix by FY30 to structurally lower costs. Analytical view: The headline figures highlight strong volume growth, but miss the margin pressure building from rising petcoke prices and domestic coal constraints. While recent price hikes should improve realisations from Q3 FY27, near-term cost headwinds remain a key risk to profitability until green energy initiatives and logistics optimizations take full effect. What to watch next: Watch for the reduction of the net debt to EBITDA ratio below 1x by March 2027 and the pace of production ramp-up for Ultra Volt.