UltraTech Cem. Q2 FY27 Results (NSE: ULTRACEMCO)
Signal: Steady quarter
The read
The key inflection is margin: after OPM expanded by 500bps, 400bps and 200bps YoY in Q1FY26-Q3FY26 and by 200bps in Q4FY26, Q2FY27 held flat at 16% YoY and dropped 500bps QoQ. Revenue still grew 18.8% YoY to ₹23,295.07 crore and PAT grew 21.3% to ₹1,501.38 crore, but higher power and fuel expense of ₹5,511.06 crore, finance costs of ₹551.75 crore and ₹94.77 crore of exceptional charges make the sequential earnings trajectory less clean.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹23,295.07 Cr | +18.8% | -5.5% |
| Net profit | ₹1,501.38 Cr | +21.3% | |
| EPS | ₹50.78 | +21.3% | |
| EBIT margin | 16% |
P&L walk
Revenue increased to ₹23,295.07 crore, +18.8% YoY but -5.5% QoQ; operating margin stayed at 16% YoY after falling 500bps QoQ, while PAT rose 21.3% to ₹1,501.38 crore despite ₹94.77 crore of exceptional charges and lower other income.
Key positives
- Revenue from operations grew 18.8% YoY to ₹23,295.07 crore, despite a 5.5% sequential decline.
- PAT grew 21.3% YoY to ₹1,501.38 crore, supported by 25.6% growth in profit before exceptional items, associates and tax.
- H1 operating cash flow increased 24.0% YoY to ₹6,909.70 crore, ahead of H1 PAT growth of 18.7%.
- PPE increased to ₹83,658.37 crore while depreciation rose 5.7% YoY to ₹1,213.35 crore, indicating capex is entering the asset base without an earnings-quality depreciation warning.
Key concerns
- OPM fell 500bps QoQ to 16%, reversing the 21% margin achieved in the previous quarter.
- Power and fuel expense rose 24.0% YoY to ₹5,511.06 crore, while finance costs rose 20.1% YoY to ₹551.75 crore.
- Debt-equity increased to 0.37x from 0.27x sequentially, while cash and cash equivalents declined to ₹143.80 crore from ₹354.48 crore at 31 March 2026.
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