UltraTech Cement
UltraTech Cement is India's largest cement maker (part of the Aditya Birla Group), producing cement, ready-mix concrete and construction chemicals from a capacity base that has swelled past 190 MTPA after recent acquisitions.
- P/E ~37-41x
- ROE ~10%
- Promoter 59%, no pledge
- Record ₹7,072 Cr special dividend
- Q2 results Oct 19, 2026
Updated on 15 Oct 2026 · Data as of 15 Oct 2026
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Snapshot
- Share price
- ₹10,778.00
- 15 Oct 2026
- 52-week range
- ₹10,154.73 – ₹12,790.92
- All-time peak
- ₹12,790.92
- 18 Feb 2026 · −15.7% from peak
- Dividend yield
- 2.23%
- Price history since
- 2002
- About 24 years of prices
What's happening
UltraTech reports Q2 FY27 results on October 19, 2026 - just days away - with an earnings call the same evening. The last reported quarter (Q1 FY27, June 2026) showed consolidated revenue up 16% YoY to ₹24,648 crore and net profit up 17% to ~₹2,604 crore, but EBITDA margin slipped from ~21% to ~20.5% as fuel and packaging costs rose. Management has flagged a further ₹130-140/tonne cost headwind for the September quarter.
In plain terms
This is the company that effectively sets the price floor for cement in India - its scale alone means raw numbers look impressive. The tension is that the stock trades at a rich 37-41x earnings while its return on equity is only around 10%, a fairly ordinary number for that price tag. The market is paying up for continued volume growth and integration of recently acquired plants (India Cements, Kesoram), not for current profitability.
Quarters
Q1 FY27 (quarter ended June 2026): revenue ₹24,648 crore (+16% YoY), EBITDA ₹5,146 crore (+12% YoY), PAT ~₹2,604 crore (+17% YoY). Domestic cement volumes grew 13.1% to 39.2 million tonnes; ready-mix concrete grew 22% and construction chemicals 52%, though both are small relative to the core cement business. EBITDA margin contracted roughly 50 bps YoY (~21% to ~20.5%) as fuel, raw material and packaging cost inflation offset savings in power and logistics. CFO Atul Daga said the company held per-tonne earnings roughly flat while growing absolute EBITDA 12% despite what he called 'the sharpest imported fuel cost shock in recent memory.' Note: YoY comparisons are partly inorganic - the India Cements and Kesoram acquisitions (completed Dec 2024 and Feb 2025) are still being integrated, with brand conversion at ~58-69% as of late 2025, so quarter-on-quarter volume jumps are not purely like-for-like organic growth.
Performance
Share price
−10.7% over 1 year
Returns by period
| Period | UltraTech Cement | Nifty 50 | Ambuja Cements |
|---|---|---|---|
| 3 months | −6.6% | −5.2% | −19.3% |
| 1 year | −10.7% | −9.9% | −38.0% |
| 3 years | +34.3% | +15.6% | −20.2% |
| 5 years | +52.0% | +23.5% | −11.5% |
₹100 invested on 18 Oct 2021 became…
- UltraTech Cement₹152
- Nifty 50₹123
- Ambuja Cements₹89
No stock splits or demergers apply here (has_corporate_action is false), so the price series can be read at face value. Over 3 and 5 years the stock has comfortably beaten both the Nifty and peer Ambuja Cement (5Y: +52% vs Nifty +23% vs peer -11%), but over the last year it has lagged the Nifty slightly (-10.67% vs -9.91%) while still far outperforming the peer (-38%). The stock is down 15.7% from its February 2026 peak of ₹12,791 - this reads as a sector-wide cyclical/cost-pressure correction rather than anything resembling a crash, and it sits above its 52-week low.
Dividend
Paid in the last 12 months
₹240.00 per share
Dividend yield
2.23%
Dividend yield is the last 12 months of dividends divided by today's share price. A 2.2% yield means every ₹100 of UltraTech Cement shares paid about ₹2.2 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 30 Jul 2026 | ₹240.00 |
| 25 Jul 2025 | ₹77.50 |
| 30 Jul 2024 | ₹70.00 |
| 27 Jul 2023 | ₹38.00 |
| 2 Aug 2022 | ₹38.00 |
| 2 Aug 2021 | ₹37.00 |
| 29 Jul 2020 | ₹13.00 |
| 10 Jul 2019 | ₹11.50 |
Valuation
UltraTech trades around 37-41x trailing earnings and roughly 4x book value (figures vary slightly by source - flagged below). It is expensive by any absolute standard. Why it is expensive: unmatched scale (~190+ MTPA), pricing power from industry consolidation, double-digit volume growth guidance, and a track record of successfully digesting acquisitions. Whether it is cheap: not on current numbers - an ROE of ~10% and ROCE in the 12.7-14.5% range are middling for a capital-intensive heavy industrial business carrying this multiple. The premium is a bet on margin recovery and continued market-share gains, not a reflection of today's profitability.
Growth
Growth right now is volume-led, not margin-led. Domestic cement volumes rose 13.1% YoY and overseas cement revenue jumped 245% (off a small base), while EBITDA margin actually contracted slightly YoY on cost inflation. That is the more fragile pattern for a commodity business - volumes are climbing but unit profitability is not keeping pace, so earnings growth currently depends on absolute scale rather than pricing/margin expansion.
Health
Leverage is low: debt-to-equity is roughly 0.26 and total debt is about ₹19,600 crore against a company of this scale, even as it plans to raise ₹5,000 crore via bonds, likely for capex/refinancing. The board also paid a one-off special dividend of ₹240/share (~₹7,072 crore, the largest in its history) in July 2026 to mark crossing 200 MTPA capacity - this is a special payout, not a new recurring dividend level, and the dividend_ttm figure of ₹240 should not be read as sustainable going forward (the prior year's regular dividend was ₹77.5). The dominant risk here is business risk - cement demand cyclicality and fuel cost swings - not financial/balance-sheet risk.
Ownership
Promoters (Grasim Industries / Aditya Birla Group) hold about 59.3%, with no pledged shares reported. Mutual funds hold roughly 16% and FIIs roughly 12-13%. Sources disagree meaningfully on the DII (domestic institutional) figure - one shows under 1%, another shows nearly 20% - so that specific number should be treated as Not verified - check on Screener. No single globally famous individual investor is prominently named on the register; this is an institutionally and promoter-held stock rather than one with a marquee retail-investor presence.
The View
The one thing to watch
The Q2 FY27 results on October 19, 2026 will show whether the ₹130-140/tonne fuel and packaging cost headwind management flagged was transient or is becoming structural - that answer determines whether the current rich valuation is justified by margin recovery or not.
Strengths
- +Domestic cement volumes grew 13.1% YoY in Q1 FY27 to 39.2 million tonnes, well ahead of industry average
- +Debt-to-equity of ~0.26 gives balance sheet room despite large recent acquisitions (India Cements, Kesoram)
- +Crossed 2 GW of captive green power (48% of power needs), insulating part of its cost base from fuel price swings
- +Diversification arms growing fast off a small base - ready-mix concrete +22%, construction chemicals +52% YoY
Watchpoints
- !EBITDA margin fell from ~21% to ~20.5% YoY in Q1 FY27 on fuel and packaging inflation, with management guiding to a further ₹130-140/tonne cost headwind in Q2 FY27
- !ROE of ~10% sits well below the implied return baked into a 37-41x P/E - that gap is the central question for the stock
- !Stock is down 15.7% from its February 2026 peak, and recent broker commentary includes at least one 'Sell' rating alongside a majority of 'Buy' ratings - a split view worth noting
- !Integration of India Cements and Kesoram assets is not fully complete (brand conversion ~58-69% as of late 2025), so near-term cost and volume figures still carry integration noise
How sure are we about the data? · Moderate
Q1 FY27 financials (revenue, EBITDA, PAT, volumes) were cross-checked across Outlook Business, Equitybulls and ScanX and are consistent. Valuation multiples (P/E 36.8x-41.08x) and return ratios (ROCE 12.7% vs 14.55% from different screeners) vary by source and date - reported as ranges rather than a single precise figure. Shareholding DII percentage showed a large discrepancy across sources (under 1% vs ~20%) and is flagged as not independently verified; promoter holding (~59.3%, no pledge) was consistent across sources. Dividend figures are confirmed via multiple sources as a one-off special dividend tied to the 200 MTPA milestone, not a new regular payout level.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 15 Oct 2026.