UltraTech reiterates FY27 wires & cables launch, sees double-digit cement volume growth

UltraTech Cement Ltd has reiterated that it remains on track to enter the wires and cables business by the early third quarter of FY27, as the company looks to diversify beyond cement and strengthen its presence across the building materials value chain.

Speaking after the company's June quarter earnings, the management reaffirmed its planned launch, even as competition in the wires and cables segment intensifies.

The company also remained constructive on the demand outlook for the core cement business, reiterating its target of delivering double-digit volume growth in FY27. Management said strong demand continues to be the key investment thesis for the sector.

On pricing, UltraTech said cement prices remained constructive during the June quarter, with all-India exit prices improving through June. It expects prices to remain broadly stable during the monsoon, supported by elevated industry cost pressures.

The company, however, expects overall costs to increase by ₹130-140 per tonne sequentially and said it would undertake measures to absorb the higher costs.

UltraTech has also completed the 100% brand conversion of India Cements and Kesoram. On India Cements, the management reiterated its target of achieving EBITDA of ₹1,000 per tonne, with the full benefits of operational improvement capital expenditure expected by the fourth quarter of FY28.

For the June quarter, UltraTech reported a consolidated net profit of ₹2,604 crore

, up 17.2% from ₹2,221 crore a year earlier and ahead of the CNBC-TV18 poll estimate of ₹2,453 crore.

Revenue rose 15.8% year-on-year to ₹24,648 crore, while EBITDA increased 13.7% to ₹5,016 crore. EBITDA margin stood at 20.4%, compared with 20.7% a year ago, while domestic sales volumes grew 13.1% to 39.2 million tonnes. Operating EBITDA per tonne improved to ₹1,214 from ₹1,198 a year earlier.

Shares of UltraTech Cement closed 1.5% higher at ₹11,900 following the results announcement on Monday. The stock has declined more than 5% in the last 12 months.