UltraTech Cement Limited expects recent cement price gains to benefit its October-December earnings and anticipates further increases in India, where its fuel cost per bag has risen from a year ago.
Chief Financial Officer Atul Daga told an Oct. 19 earnings call that spot realizations on the call date were about 5% above the July-September quarter’s average. He expects recent price increases to have their full effect on October-December earnings, though the holiday period could delay that effect.
Fuel cost reached ₹51.50 per bag, up from ₹45 a year earlier, Daga said. He could not say whether fuel costs had peaked. In discussing future cement prices, he cited demand and broader economic conditions alongside cost pressure.
UltraTech’s Oct. 19 results release, discussed in earlier coverage of the quarter, showed consolidated profit after tax rose 21.3% from a year earlier to ₹1,501 crore in the three months ended Sept. 30. Net sales grew 18.9% to ₹23,024 crore, while domestic grey cement sales volume increased 13.8% to 35.94 million tonnes. Capacity utilization rose to 71% from 66%.
Daga said cement prices generally adjust to higher industry costs after a delay. If those costs rise structurally, he expects the increase eventually to be passed on to customers. For UltraTech, sustained price gains would help cover its larger fuel bill; the effect on customers remains an expectation, rather than a measured increase in their bills.
UltraTech said monsoon conditions and the West Asia crisis affected its July-September quarter, without quantifying either impact. It reported domestic grey cement capacity of 204.7 million tonnes a year as of Sept. 30.
UltraTech’s financial calendar places reporting for the quarter ending Dec. 31 at the end of January 2027. Those results will provide the next measure of how much of the recent price gains reached earnings.
