28 Apr , 2026 By : Debdeep Gupta
Shares of UltraTech Cement Ltd were largely flat in early trade on Tuesday after the company reported a strong Q4 FY26 financial performance and announced a record dividend payout. The stock was trading at Rs 12,000, down 0.08 percent, after ending Monday’s session marginally higher at Rs 12,010.
UltraTech Cement reported a 21.2 percent year-on-year rise in net profit to Rs 3,000 crore for the January-March quarter, beating the CNBC-TV18 poll estimate of Rs 2,749 crore. EBITDA grew 21.3 percent to Rs 5,600.5 crore, also ahead of expectations. Margins expanded by 170 basis points to 21.7 percent. Revenue rose 12 percent on-year to Rs 25,799.5 crore, largely in line with estimates.
Volume growth remained strong, with India sales volumes at 42.41 million tonnes, up 9.3 percent on-year, while domestic grey cement volumes (excluding India Cements) rose 15 percent to 42.01 million tonnes. The company also announced a special dividend of Rs 240 per share, its highest-ever payout, subject to shareholder approval.
Brokerages remained bullish on the stock despite flagging near-term challenges.
Jefferies has a buy rating on UltraTech shares with a target price of Rs 14,050. It highlighted that the company ended FY26 on a strong note with robust EBITDA and volume growth, along with a record dividend payout. However, the brokerage cautioned that FY27 could be a tougher year due to cost headwinds, although pricing actions and cost savings may support EBITDA per tonne growth.
HSBC also maintained a buy call with a target price of Rs 14,200. It cited a beat on both EBITDA and profit driven by strong volumes and lower costs. The brokerage views the special dividend as a positive, and expects capital expenditure intensity to decline over FY27-29. It raised its EBITDA estimates for FY28-29.
UltraTech Cement also reiterated its growth plans, with capital commitments of over Rs 16,000 crore over the next three years, which are expected to take its consolidated capacity beyond 240 MTPA from over 200 MTPA currently. The company added that its cables and wires business is progressing as planned and is likely to be commissioned by the third quarter of FY27.
On a one-year basis, the UltraTech Cement stock is down 1.3 percent, compared with a 1 percent decline in the benchmark Nifty 50.
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