UltraTech’s Q1 has bright spots, but margin pressures linger

UltraTech Cement's Q1FY27 results broadly met expectations, with volumes up 12% year-on-year at 41.3 million tonnes against industry growth of 7-8%, signalling market share gains. Consolidated Ebitda per tonne held at ₹1,214, flat year-on-year, but margin pressure persists as fuel costs rose to ₹1.90/kcal and are expected to peak near ₹2/kcal in Q2. Brokerages including ICICI Securities are not pursuing earnings upgrades yet, flagging near-term cost headwinds, weak monsoon forecast, and a rich valuation of around 16x FY28 EV/Ebitda.