UltraTech profit rises 17.24% YoY, but margin drops 3.1 points sequentially
Year-on-year cost control supported the margin, while the quarter-on-quarter decline reflected expenses falling less than revenue.
Filed 20 Jul 2026, 14:22 IST · UltraTech Cement Ltd (ULTRACEMCO)
Key takeaways
- Consolidated net profit rose 17.24% year on year to Rs 2,603.72 cr, helped by 15.85% revenue growth and a 0.92-point lower tax rate.
- Operating margin fell 3.10 percentage points sequentially to 17.81% as revenue declined 4.46% while expenses fell only 0.72%.
- The stock gained 1.50% on the results day, modestly above its 1.18% median move after the past eight results, though a corporate action overlapped.
Price around the results
Year-on-year profit growth continued despite a softer quarter
UltraTech Cement's consolidated revenue grew 15.85% year on year, and operating profit rose faster at 18.97%, lifting the operating margin by 0.47 percentage points. Sequentially, revenue fell 4.46% and operating profit declined 18.61%, leaving net profit 13.21% lower than in Q4FY26. The quarter therefore shows annual improvement but weaker momentum from the preceding quarter.
Sequential margin pressure came from the cost-to-revenue mix
Expenses declined only 0.72% sequentially against the 4.46% revenue fall, so operating margin narrowed by 3.10 percentage points. Year on year, expenses grew 15.20%, slightly slower than revenue, which explains the 0.47-point margin improvement. The tax rate also rose 0.58 points sequentially, while interest expense fell 6.98%.
Margin recovered from the FY26 trough but remains below Q4
The 17.81% operating margin was 4.25 percentage points above the 13.56% median for the 12 Commodities peers that had reported, placing UltraTech 11th from the bottom. The trend is mixed: margin recovered from 12.52% in Q2FY26 to 20.91% in Q4FY26 before this quarter's decline. Other income contributed 3.74% of pre-tax profit, so it was not the main source of reported earnings.
Initial share reaction was positive but not out of character
The stock rose 1.50% on the results day and was up 3.13% the following day. The first-day move was above the 1.18% median absolute move after the past eight results, when the stock rose four times and fell four times. A corporate action overlapped the reaction, so the price move is not a clean read-through of the earnings response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹24,648 cr | ₹25,799 cr | -4.46% | +15.85% |
| Other income | ₹130 cr | ₹88 cr | +48.78% | -27.72% |
| Expenses | ₹20,259 cr | ₹20,406 cr | -0.72% | +15.20% |
| Operating profit | ₹4,390 cr | ₹5,394 cr | -18.61% | +18.97% |
| Operating margin (%) | 17.81% | 20.91% | — | — |
| Interest | ₹453 cr | ₹487 cr | -6.98% | +4.53% |
| Depreciation | ₹1,201 cr | ₹1,208 cr | -0.63% | +8.47% |
| Profit before tax | ₹3,479 cr | ₹3,982 cr | -12.63% | +15.50% |
| Tax | ₹877 cr | ₹981 cr | -10.59% | +11.41% |
| Net profit | ₹2,604 cr | ₹3,000 cr | -13.21% | +17.24% |
| EPS (₹) | ₹88.36 | ₹101.41 | -12.87% | +16.77% |
Operating margin of 17.81% compares with a Commodities sector median of 13.56% across 12 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.50% | +1.89% |
| Next session | +3.13% | — |
Volume on the results session was 1.90× its 20-day average.
What to watch
- Whether operating margin holds above 17.81% after the sequential decline.
- Whether revenue reverses the 4.46% sequential fall without expenses again declining only 0.72%.
- Whether the tax rate moves back below 25.20% after rising 0.58 percentage points sequentially.