Ultratech Cement shares drop as Q2 FY25 net profit plunges 36%, revenue falls 2%

UltraTech Cement shares dropped today following the release of its second-quarter results for the fiscal year 2025 (Q2 FY25). The company’s financial performance reflected significant challenges, with both revenue and profitability declining year-on-year (YoY).

In Q2 FY25, UltraTech Cement reported a net profit of ₹825 crore, a sharp decline of 36% from ₹1,281 crore in the same period last year (Q2 FY24). This substantial decrease in profit was primarily driven by higher operating costs and reduced demand in the cement sector, which has faced pressure from rising input costs and fluctuations in demand due to macroeconomic factors.

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The revenue from operations for the quarter also saw a modest decrease, standing at ₹15,635 crore in Q2 FY25, down 2% from ₹16,012 crore in Q2 FY24. This revenue dip reflects a combination of softening demand and pricing pressure in the competitive cement market.

Moreover, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY25 experienced a substantial drop of 21% YoY. EBITDA for the quarter came in at ₹2,019 crore, compared to ₹2,550.9 crore in the corresponding quarter of the previous year. The decline in EBITDA indicates pressure on UltraTech Cement’s profitability, largely due to increased energy and raw material costs that continue to weigh on margins.

Despite the company’s efforts to manage costs, UltraTech’s margins have faced considerable strain, exacerbating the drop in profits. Industry analysts suggest that UltraTech’s performance reflects the broader challenges faced by the cement industry in India, including increased fuel prices and transportation costs, which have directly impacted production expenses.

As of 2:15 pm today, UltraTech Cement shares were trading 2.32% lower at ₹10,813.00 on the NSE, highlighting the market’s reaction to the disappointing Q2 results. The company’s stock had opened lower, and the downward trend continued as investors responded to the underwhelming financial figures. The cement major’s performance will be closely watched in the coming months to see if it can recover its margins and profitability amid ongoing industry pressures.

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