UltraTech Cement Limited conducted its Q2 FY27 Earnings Conference Call on October 19, 2026, following the Board of Directors meeting held on October 19, 2026. The call was an earnings conference call to discuss the company's quarterly results and provide a strategic update.

Management Participants:

  • Mr. Kailash C. Jhanwar – Managing Director
  • Mr. Atul Daga – Chief Financial Officer

Key Financial & Operational Highlights from the Call:

  • The company reported a 21% year-on-year increase in net profit for Q2 FY27.
  • Cement sales volume grew by 13.8% year-on-year.
  • Capacity utilization improved to 71% from 66% in the previous year.
  • Realizations were largely stable quarter-on-quarter.
  • Fuel costs increased by 13% QoQ, rising from INR45 to INR51.5 per bag.
  • Raw material costs rose by 3% quarter-on-quarter.
  • Other fixed costs per ton were 6% lower year-on-year.
  • The company commissioned 4.6 million tons of new cement capacity in September, taking total domestic capacity to 204.7 million tons. This included a 3.6 million ton greenfield plant in Petnikota, Andhra Pradesh, and 1 million ton from debottlenecking.
  • 116 MW of renewable power and 10 MW of waste heat recovery systems were added. 47% of power needs are now met from non-fossil fuel sources.
  • The company launched its new 'Ultravolt' wires and cables business on September 3, 2026, with a planned investment of INR1,800 crores (INR1,100 crores spent to date).

Regional Performance & Pricing:

  • Prices firmed up in the second half of September, with trade prices rising 7-10 INR per bag month-on-month.
  • Exit September trade prices were about 3% above the Q1 average.
  • South: Strongest momentum in prices, volume, and capacity utilization (over 70%).
  • West: Prices steady, with Mumbai seeing strong increases of 3-4% per bag.
  • North: Held steady with high double-digit growth; company grew more than 20%.
  • East: Disrupted by torrential rains, pulling down volumes and prices; capacity utilization around 60%.
  • Central: Played a muted game.

Demand Outlook:

  • Industry cement demand is estimated to grow closer to 10% YoY.
  • The weak monsoon (4th lowest since 2001) resulted in fewer rain-lost days, supporting construction activity.
  • A strong project pipeline was cited, including announcements worth INR13.4 lakh crores (e.g., Tamil Nadu power plant, Gorakhpur Industrial Park, Assam infra program).
  • Demand is expected to pick up strongly post the festive season and Chhath Puja.

Cost Challenges:

  • The West Asia conflict was cited as a primary driver for increased costs, pushing pet coke prices to ~$180/ton.
  • The company has reduced its dependence on pet coke to 25% of its overall fuel mix.
  • Domestic coal availability is tight as Coal India prioritizes the power sector.
  • Industrial diesel prices are at an all-time high.

Ultravolt Business Update:

  • Focus for the current quarter is on stabilizing the network (fill rates, replenishment, credit discipline).
  • Over 1,500 UltraTech UBS channel partners have signed up as dealers.
  • Retail reach has crossed 80,000 points.
  • Production and sales of house wire, panel wire, and multicore cable have started.
  • The business is a division, not a subsidiary, and will be reported in standalone financials.
  • The initial revenue target of INR10,000 crores (set in FY25) is now estimated to be INR16,000-18,000 crores due to higher copper prices.

Capital Allocation & Balance Sheet:

  • Capex for H1 FY27 was ~INR5,882 crores. Full-year guidance is maintained at approximately INR10,000 crores.
  • The company raised INR5,000 crores via NCDs at 7.25%.
  • Net debt to EBITDA stood at 1.26x at the end of September 2026, with an expectation to be below 1x by March 2027.

Compliance Statement:

The transcript of the call was filed with the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The document does not contain any statement indicating that unpublished price sensitive information (UPSI) was shared.

Additional Notes

  • The document is a transcript of the earnings conference call, attached to the regulatory filing.
  • No standalone financial data was disclosed within this specific announcement document; all figures were shared during the call.