UltraTech Cem. Q1 FY26 Results (NSE: ULTRACEMCO)
Signal: Margin expansion
The read
Margin momentum sustained: OPM expanded 500bps YoY to 21%, the fifth straight quarter of YoY improvement, driven by input cost tailwinds (lower power/fuel) and operating leverage (depreciation + finance costs growing far below revenue). Revenue growth of 15.9% YoY marks the fastest Q1 growth in recent years, led by volume. PAT at ₹2,604 Cr is a Q1 record. The only moderate note is that OPM sequentially dipped 100bps from Q4FY26's 22%, but Q1 seasonally tends to be lower; the YoY trajectory remains strong.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹24,648.2 Cr | 15.9% | 7.5% |
| EBIT | ₹5,484.65 Cr | -4.1% | |
| Net profit | ₹2,603.72 Cr | 17.2% | |
| EPS | ₹88.36 | 16.8% | |
| EBIT margin | 21% |
P&L walk
Revenue grew 15.9% YoY driven by volume, OPM expanded 500bps to 21% on input cost tailwinds and operating leverage, PAT grew 17.2% YoY.
Segments
The group is a single segment (building materials), hence no segment split to analyse.
Key positives
- Revenue ₹24,648 Cr (+15.9% YoY) — fifth consecutive quarter of double-digit growth.
- OPM expanded 500bps YoY to 21%, marking the 5th straight quarter of YoY margin expansion.
- Finance costs dropped 27% YoY to ₹136 Cr, reflecting deleveraging.
- PAT ₹2,604 Cr (+17.2% YoY) — Q1 record.
- Current ratio improved to 1.02x from 0.97x a year ago, indicating stronger liquidity.
Key concerns
- Other income declined from ₹180 Cr to ₹130 Cr YoY, partially offsetting operating gains.
- Operating margin sequentially dipped 100bps from Q4FY26's 22% — Q1 seasonality could be a factor.
- Interest coverage ratio fell to 8.45x from 9.15x a year ago due to lower operating profit in relation to interest.
Research and educational content only. Not investment advice.