UltraTech Cement reported approximately 10% YoY consolidated volume growth in Q1FY26, with domestic grey cement volumes rising ~9%. Operating metrics were stable, with blended EBITDA per tonne at ₹1,197, and domestic operating EBITDA per tonne at ₹1,248, aided by better realisations in a seasonally weak quarter.
Management reiterated its double-digit volume growth guidance for FY26 and affirmed that the company remains on track to achieve a domestic cement capacity of 212 million tonnes by FY27, up from 187 million tonnes currently.
Given the positive growth outlook and firm cement prices, Nuvama has raised its valuation multiple to 19x EV/EBITDA (from 18x) and rolled forward valuations to Q1FY28E, resulting in a revised target price of ₹13,628, up from ₹11,859 earlier. However, the brokerage maintains a ‘Hold’ rating, citing that current valuations reflect most of the upside.
“The outlook on pricing is improving, and with strong volume visibility and capacity additions on schedule, UTCL remains a structurally sound play,” Nuvama noted.
