Cement Stock Gains After Q1 Earnings Beat; Brokerages See Over 16% Upside

UltraTech Cement Ltd shares traded higher on Tuesday after the country's largest cement manufacturer reported stronger-than-expected Q1 FY27 results, prompting leading brokerages Jefferies and CLSA to maintain their bullish outlook on the stock. Analysts cited healthy volume growth, disciplined cost management and continued execution as key factors supporting the company's earnings performance.

The stock rose nearly 1% during early trade after closing 1.5% higher in the previous session following the earnings announcement. Investors also responded positively to the company's better-than-expected profitability, improving operating margins and continued capacity expansion plans.

UltraTech Cement Delivers Strong Q1 FY27 Earnings

For the quarter ended June 30, 2026, UltraTech Cement reported consolidated net profit of ₹2,604 crore, an increase of 17.2% from the corresponding quarter last year. The earnings exceeded market expectations, with the reported profit coming in above the CNBC-TV18 poll estimate of ₹2,453 crore.

The company also posted revenue from operations of ₹24,648 crore, up 15.8% year-on-year, while EBITDA increased 13.7% to ₹5,016 crore. Both revenue and operating profit surpassed analysts' estimates, reflecting strong demand and improved operational efficiency.

Q1 FY27 Financial Performance

Metric	Q1 FY27	YoY Growth
Net Profit	₹2,604 crore	17.2%
Revenue from Operations	₹24,648 crore	15.8%
EBITDA	₹5,016 crore	13.7%
Grey Cement Volumes	39.17 million tonnes	13.1%
Operating EBITDA per Tonne	₹1,214	Improved

UltraTech Cement Share Price Performance

Following the earnings announcement, UltraTech Cement shares extended gains in Tuesday's session.

The stock rose as much as 0.98% to ₹12,020 during early trade after ending the previous session 1.5% higher at ₹11,903. At the time of the update, the company had a market capitalisation of approximately ₹3.51 lakh crore, making it India's largest listed cement manufacturer.

Share Price Snapshot

Particular	Value
Early Trade Gain	0.98%
Intraday High	₹12,020
Previous Close	₹11,903
Market Capitalisation	₹3.51 lakh crore

Jefferies and CLSA Remain Bullish

Following the quarterly earnings, leading brokerage firms maintained positive recommendations on UltraTech Cement.

Jefferies retained its Buy rating, while CLSA reiterated its High Conviction Outperform recommendation. Both brokerages highlighted stronger-than-expected earnings, healthy cement volumes, disciplined execution and lower operating costs as the key drivers behind the company's performance.

According to the brokerages, continued capacity expansion and improving profitability could support earnings growth over the medium term.

Brokerage View

Brokerage	Rating	Key View
Jefferies	Buy	Strong execution and healthy earnings growth
CLSA	High Conviction Outperform	Volume growth, cost discipline and margin improvement

Strong Volumes and Lower Costs Support Earnings

A major contributor to the quarterly performance was the company's 13.1% growth in grey cement volumes, which reached 39.17 million tonnes during the June quarter.

The company also reported operating EBITDA per tonne of ₹1,214, reflecting improved cost efficiency despite seasonal challenges. Analysts noted that management's cost guidance for the current quarter remained better than typical monsoon trends, supporting expectations of stable profitability.

Brokerages expect cement pricing to remain broadly stable during the monsoon season while continuing to monitor input costs and further improvement in operating margins.

Capacity Expansion Remains a Key Growth Driver

Analysts continue to view capacity expansion as one of UltraTech Cement's biggest long-term growth drivers.

The company has been steadily increasing its manufacturing capacity across India to strengthen its market leadership and meet rising infrastructure and housing demand. Combined with cost optimisation initiatives and operational efficiency, these investments are expected to support future earnings growth.

Company Overview

UltraTech Cement Ltd, part of the Aditya Birla Group, is India's largest cement manufacturer with operations across grey cement, white cement, ready-mix concrete and building products. The company has an extensive manufacturing network across India and international markets, serving infrastructure, housing and commercial construction projects.

1. Why did UltraTech Cement shares rise today?

UltraTech Cement shares gained after the company reported better-than-expected Q1 FY27 earnings, with net profit rising 17.2% and revenue as well as EBITDA exceeding market estimates.

2. What were UltraTech Cement's Q1 FY27 results?

The company reported net profit of ₹2,604 crore, revenue of ₹24,648 crore and EBITDA of ₹5,016 crore during Q1 FY27, while grey cement volumes increased 13.1% year-on-year.

3. What are Jefferies and CLSA's views on UltraTech Cement?

Jefferies maintained a Buy rating, while CLSA reiterated its High Conviction Outperform recommendation, citing strong execution, healthy volume growth and improving cost efficiency.

4. What drove UltraTech Cement's earnings growth?

Higher cement sales volumes, improved operational efficiency, disciplined cost management and stable pricing helped the company deliver stronger profitability during the June quarter.

5. Why is UltraTech Cement considered a leading cement company?

UltraTech Cement is India's largest cement manufacturer with a diversified portfolio across cement, ready-mix concrete and building solutions, supported by one of the country's largest production and distribution networks.