Nuvama has upgraded UltraTech Cement to a buy rating and raised its target price to ₹14,461 per share, citing robust domestic volume growth, improving realisations and a visible capacity expansion pipeline.
The brokerage noted that domestic grey cement volumes rose 15% year-on-year in Q3FY26, highlighting strong demand traction despite a challenging pricing environment earlier in the quarter. UltraTech reported standalone operating EBITDA per tonne of ₹1,051, while blended EBITDA per tonne stood at ₹1,007, reflecting resilient cost management.
While realisations declined 3% QoQ during the quarter, Nuvama pointed out that pricing trends showed improvement in January 2026, supporting expectations of margin recovery in the coming quarters.
On capacity expansion, Nuvama highlighted that UltraTech’s domestic capacity is set to increase from 189 million tonnes to 210 million tonnes by the end of FY27, with total capacity projected to reach 235 million tonnes by FY28-end. This expansion is expected to strengthen UltraTech’s leadership position and support long-term volume-led growth.
Nuvama believes the combination of strong demand, improving pricing environment and a clear capacity roadmap underpins its upgrade and revised valuation.
Disclaimer: The views and recommendations above are those of Nuvama. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
