1. At a Glance
UltraTech Cement delivered a blockbuster ₹2,226 Cr profit in Q1 FY26, riding on 9.7% volume growth and some good ol’ India Cements magic. But at 53x PE, is this grey gold too premium for its own good?
2. Introduction with Hook
If Ambuja is the middle-class hero of Indian cement, UltraTech is Ambani’s choice of bricks.
- Q1 FY26 PAT: ₹2,226 Cr (+49% YoY)
- Sales: ₹21,040 Cr
- India Cements turnaround part of the Q1 script
But with the stock trading at ₹12,577 and PE > 53, even Warren Buffett might ask, “Kya yeh thoda mehenga nahi hai?”
3. Business Model (WTF Do They Even Do?)
UltraTech is the largest cement company in India and 3rd largest globally (ex-China).
Revenue Streams:
- Grey Cement
- White Cement
- Ready-Mix Concrete
- Building Products (Putty, Dry Mix, etc.)
Geographic Reach:
- 22% of India’s capacity
- 100+ Ready-Mix Concrete plants
- Pan-India + global exports
It’s the Aditya Birla Group’s most “concrete” contribution to India’s infrastructure.
4. Financials Overview
Q1 FY26
- Revenue: ₹21,040 Cr (YoY growth: 19%)
- EBITDA: ₹4,406 Cr
- PAT: ₹2,226 Cr (YoY growth: 49%)
- EPS: ₹75.54
- OPM: 21%
- Volume Growth: 9.7%
- India Cements integration: silently showing up in margins
Not bad for a company selling bags of powder.
5. Valuation
Let’s break down the grey area:
Current Price: ₹12,577
EPS TTM: ₹235
Book Value: ₹2,399
P/E: 53.6
P/B: 5.24
EduVal™ Fair Value Range:
- Earnings-based: ₹235 x 30–35 = ₹7,050 – ₹8,225
- Book-value based: ₹2,399 x 3.0–3.5 = ₹7,200 – ₹8,400
Conclusion: Currently priced for perfection. Realistic FV? Around ₹7,000–₹8,500.
6. What’s Cooking – News, Triggers, Drama
- AGM fixed: 19 Aug 2025; dividend post 20 Aug
- India Cements Turnaround: Finally not just filler in their PPTs
- New Auditor & Director: Governance facelift
- Stock Option Grants: Talent retention or shareholder dilution?
UltraTech is no drama queen, but it does drop quiet bombs in its concalls.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 295 |
| Reserves | 70,412 |
| Borrowings | 24,102 |
| Other Liabilities | 38,888 |
| Total Liab. | 1,33,697 |
| Fixed Assets | 94,610 |
| CWIP | 6,188 |
| Investments | 5,156 |
| Other Assets | 27,742 |
Verdict: Strong asset base but rising debt to fund expansion and acquisitions.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | 9,069 | -7,188 | -1,631 | +250 |
| FY24 | 10,898 | -8,789 | -1,926 | +183 |
| FY25 | 10,673 | -16,504 | +5,076 | -755 |
Insights:
- Operationally strong (CFO > ₹10,000 Cr)
- Capex-heavy
- FY25 saw net outflows due to aggressive plant expansion
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 9.34% |
| ROCE | 10.9% |
| OPM | 18% |
| Debt/Equity | ~0.34x |
| P/E | 53.6 |
| Dividend Yield | 0.56% |
Verdict:
Steady and safe. But not screaming “multibagger”.
10. P&L Breakdown – Show Me the Money
| FY | Sales ₹Cr | EBITDA ₹Cr | PAT ₹Cr | EPS ₹ | OPM % |
|---|---|---|---|---|---|
| FY23 | 63,240 | 10,620 | 5,073 | 175.4 | 17% |
| FY24 | 70,908 | 12,969 | 7,004 | 242.7 | 18% |
| FY25 | 75,955 | 12,547 | 6,040 | 204.9 | 17% |
| TTM (Q1 FY26 Incl.) | 77,752 | 13,924 | 6,884 | 235.3 | 18% |
11. Peer Comparison
| Company | CMP ₹ | P/E | ROE % | Sales TTM ₹Cr | PAT TTM ₹Cr | OPM % |
|---|---|---|---|---|---|---|
| UltraTech | 12,577 | 53.6 | 9.3 | 77,752 | 6,884 | 18% |
| Ambuja Cements | 613 | 36.5 | 8.7 | 35,045 | 4,143 | 17% |
| Shree Cement | 31,535 | 101.9 | 5.3 | 19,283 | 1,118 | 20.4% |
| JK Cement | 6,416 | 54.1 | 13.9 | 12,424 | 917 | 17.9% |
| ACC | 1,978 | 16.1 | 13.2 | 21,762 | 2,307 | 14.1% |
Conclusion: UltraTech is the GOAT—but priced like a luxury collectible.
12. Miscellaneous – Shareholding, Promoters
- Promoters: ~59.2% (stable)
- FIIs: Down from 18.2% → 15.17%
- DIIs: Up to 16.79%
- Public: 8.57%
- Shareholders: 3.94 lakh
- ESOP activity: Fresh stock options under 2022 plan
No major red flags. FII exit may be profit-booking, not panic.
13. EduInvesting Verdict™
UltraTech is that well-dressed, pedigreed industrialist who builds India’s infrastructure by day and its EBITDA by night. You don’t doubt its credibility.
But at 53x PE, you’re paying Taj Mahal rates for bricks.
If cement demand booms, UltraTech will still rule. But new investors might want to wait till Mr. Market stops doing tequila shots with valuations.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: ultratech cement, q1fy26, birla group, india cements, cement stocks, expensive bluechips
