UltraTech Cement, India’s largest cement manufacturer, reported a robust performance in Q4 FY25. The company achieved a 10% year-on-year increase in net profit, reaching ₹2,482 crore, and a 13% rise in revenue to ₹23,063 crore. Sales volumes also saw a significant uptick, growing by 17% to 41.02 million tonnes. Despite these strong financials, the UltraTech Cement share price experienced a nearly 2% decline on April 29, 2025, closing at ₹12,108.25.
Let’s delve into the factors contributing to this paradox and what it means for investors.
Also read: Adani Green and Total Gas Q4 results takeaways
Q4 FY25 financial performance
UltraTech Cement’s Q4 FY25 results showcased impressive growth across several parameters:
| Metric | Q4 FY24 | Q4 FY25 | Change (%) |
| Revenue (₹ crore) | 20,419 | 23,063 | 13% |
| Net Profit (₹ crore) | 2,258 | 2,482 | 10% |
| Sales Volume (mn tonnes) | 35.08 | 41.02 | 17% |
| EBITDA per tonne (₹) | 1,185 | 1,270 | 7% |
The growth in sales volume was boosted by the company’s acquisitions of Kesoram Industries and India Cements, as well as the commissioning of 17.4 MTPA capacity across various locations during FY25.
Profit slips despite profit rise
Despite strong results, investors were unimpressed. The modest rise in EBITDA per tonne and flat margins year-on-year didn’t excite the market. Grey cement prices remained under pressure, especially in the South and West. This limited profitability despite higher volumes.
In the previous quarter, UltraTech had shown margin contraction. The improvement this quarter, while better, was already expected. For traders and institutional investors, this meant there was no big positive surprise, prompting some to book profits.
You may also read: Reliance Industries’ Q4 results analysis
Capacity expansion and green energy push
UltraTech continued to aggressively expand its capacity. It added 42.6 MTPA in FY25 and now has a domestic grey cement capacity of 183.36 MTPA. Including its overseas operations, its global capacity stands at 188.76 MTPA.
The company also surpassed 1 GW of renewable energy capacity, combining solar, wind, and waste heat recovery systems. This now powers 46% of its total energy needs and is expected to lower costs in the long term.
Looking ahead, UltraTech is on track to reach 210.5 MTPA by FY27. This scale will allow the company to further dominate the market while maintaining efficiencies.
Analyst perspectives
Nuvama: Hold
Nuvama maintained a ‘Hold’ rating, increasing the target price to ₹11,859. The brokerage flagged high valuations and a pricing environment that’s still not firm across regions. They also cited the company’s expected double-digit organic growth in FY26 as a positive.
Antique: Buy
Antique retained its bullish stance, keeping the target price at ₹12,800. They pointed to ₹300 per tonne in targeted cost savings through FY25–27, with ₹86 already realised. They believe UltraTech’s margin profile will strengthen further.
Other analysts:
Some experts suggest a “wait and watch” approach. If cement prices firm up or there’s a strong monsoon-led infrastructure boost, the stock could rally. However, for now, many are cautious until more consistent pricing strength is observed.
Dividend announcement
UltraTech declared a dividend of ₹77.5 per share, a total payout of ₹2,283.75 crore. This is a strong indicator of management’s confidence in the company’s long-term cash flows. For investors seeking both growth and income, this is a valuable signal.
You may also like: Shriram Finance share price crashes after Q4 results
Conclusion
UltraTech’s Q4 FY25 performance was fundamentally strong. Volume growth, operating efficiency, and expansion plans are all on track. The fall in share price was not due to poor numbers but due to high expectations and a lack of margin surprise.
For long-term investors, this dip could present a good entry point. The company’s expanding footprint, cost control, and green energy transition make it well-positioned for India’s infrastructure growth cycle. Patience, in this case, could pay off handsomely.
