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 operating margin narrowed 0.38 percentage points YoY to 20.35% as expenses grew 16.41%, faster than revenue at 15.85%.
- Net profit increased 17.24% YoY to Rs 2,603.72 cr, helped by a 0.97 percentage-point fall in the tax rate, while other income was 3.4% of pre-tax profit.
- The stock gained 1.50% on results day, above the 1.18% median absolute move across its eight prior result reactions.
Price around the results
Profit growth held up despite weaker sequential momentum
UltraTech’s consolidated net profit rose 17.24% YoY to Rs 2,603.72 cr, as revenue grew 15.85% and operating profit increased 13.72%. Sequentially, revenue fell 4.46% and net profit declined 13.21%, indicating a loss of momentum from Q4FY26. The lower 25.19% tax rate also supported profit growth, down 0.97 percentage points YoY.
Costs narrowed the margin in both comparisons
Expenses grew 16.41% YoY against 15.85% revenue growth, cutting operating margin by 0.38 percentage points. Sequentially, revenue declined 4.46% while expenses fell only 2.80%, resulting in a sharper 1.36 percentage-point margin contraction. Interest costs fell 6.98% QoQ but rose 4.53% YoY, so they did not offset the operating-cost pressure.
The margin recovery paused after Q4FY26
Operating margin had recovered from 15.78% in Q2FY26 to 21.71% in Q4FY26 before easing to 20.35% in Q1FY27. The quarter’s margin remained 1.08 percentage points above the 19.27% median for 67 reported Commodities-sector peers, although it ranked 39th from the bottom. Other income accounted for 3.4% of pre-tax profit, keeping the reported profit largely tied to operations.
Initial market reaction was positive but not decisive
The stock rose 1.50% on the reaction day and was up 3.13% by t+1, with trading volume at 1.9 times the reference level. Its previous eight result reactions were evenly split between four rises and four falls, with a median absolute move of 1.18%, so the initial gain was larger than usual. A corporate-action overlap means the move is not a clean earnings-only signal.
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 | ₹118 cr | ₹75 cr | +57.37% | -13.90% |
| Expenses | ₹19,633 cr | ₹20,199 cr | -2.80% | +16.41% |
| Operating profit | ₹5,015 cr | ₹5,600 cr | -10.44% | +13.72% |
| Operating margin (%) | 20.35% | 21.71% | — | — |
| Interest | ₹453 cr | ₹487 cr | -6.98% | +4.53% |
| Depreciation | ₹1,201 cr | ₹1,208 cr | -0.63% | +8.47% |
| Profit before tax | ₹3,480 cr | ₹3,981 cr | -12.56% | +15.71% |
| 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 20.35% compares with a Commodities sector median of 19.27% across 67 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.50% | +1.89% |
| Next session | +3.13% | — |
| 5 sessions | +1.31% | +2.70% |
| 15 sessions | +2.65% | — |
Volume on the results session was 1.90× its 20-day average.
What to watch
- Whether operating margin recovers from 20.35% after the 1.36 percentage-point QoQ decline.
- Whether revenue momentum improves after the 4.46% sequential fall from Q4FY26.
- Whether expenses continue to grow faster than revenue after the 16.41% versus 15.85% YoY gap.