UltraTech Cement Q3: Brokerages bullish on industry-leading volume growth, bet on govt's infra push

UltraTech Cement reported ~11 percent YoY consolidated volume growth in Q3FY25, outperforming the industry's volume growth of 5 percent.

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26 Aug, 2025 12:21

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Aditya Birla Group-backed cement giant UltraTech Cement Ltd. bagged a slew of buy calls following its earnings results for the quarter ended December (Q3) of the financial year 2024-25 (FY25).

UltraTech Cement reported a 17 percent decline in its consolidated net profit for the October-December quarter to Rs 1,470 crore. Consolidated revenue from operations rose nearly 3 percent YoY to Rs 17,193 crore, but recovering demand from the infrastructure segment as well as from the rural markets, ensured that it beat market expectations.

Going ahead, UltraTech Cement aims to add further capacity, which will enable it to post industry leading volume growth, going forward, despite large scale. Directionally, it plans to achieve >200mt by FY27E through organic/ inorganic expansion as it intends to gain capacity market share (~450 bps increase in share, to 27 percent by FY27) which will be supported by the
balance sheet.

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Brokerages are optimistic about UltraTech Cement, citing robust growth prospects and solid financial performance.

"It has enough levers for structural cost improvement of Rs 200-300/tn over the next 3 years. This will help it to either increase market share further or achieve industry leading profitability," said JM Financial. The brokerage maintained its 'buy' rating, with a target price of Rs 13,000 per share.

Jefferies maintained a 'buy' call with a target price of Rs 13,265, driven by an all-round recovery in Q3 and expectations of higher operating leverage. The brokerage predicts Q4 EBITDA to improve to Rs 1,100-1,150 per tonne and estimates a 14 percent volume CAGR from FY24 to FY27, keeping UltraTech as its top cement pick.

DAM Capital also upgraded the stock to 'buy', raising the target price to Rs 12,550, citing a favorable outlook for the Indian cement sector supported by government infrastructure projects and slower consolidation in the industry.

UltraTech Cement reported ~11 percent YoY consolidated volume growth in Q3FY25, again outperforming the industry. Factoring in better demand growth and pricing environment, Nuvama Institutional Equities hiked its target price on the cement player to Rs 11,574, but reaffirmed its 'hold' call.

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