ET Intelligence Group:
's June 2026 quarter performance was in line with expectations. The country's largest cement manufacturer by volume delivered its strongest-ever first quarter numbers in terms of volume, revenue, and operating profit before depreciation and amortisation (EBITDA). While near-term performance could be affected by monsoon-related seasonality and higher input costs due to war-led disruptions in West Asia, the company expects to record double-digit volume growth in FY27. The commercial launch of its
remains on track for the third quarter of FY27, providing an additional growth lever. Although margin pressures may keep the stock range-bound in the near term, its lower valuation relative to long term average multiples provides a cushion against significant downside.
Agencies
Full impact of higher fuel costs will be reflected in earnings as costlier inventory gets consumed
The September quarter will be challenging for volume growth since it is seasonally weaker due to the monsoon. Additionally, the full impact of higher fuel costs linked to the West Asia conflict will be reflected in earnings as costlier inventory gets consumed. During the June quarter, higher fuel and packaging costs led to a contraction of 110 basis points sequentially and 70 basis points year-on-year in
to 20.9%. Profitability is expected to remain under pressure in the September quarter, with EBITDA per tonne likely to decline by ₹130-140 from ₹1,214 in the June quarter after rising marginally from ₹1,198 a year ago and dropping sequentially from ₹1,253. However, cement prices improved through June, particularly in the East and South region, and are expected to remain broadly stable during the monsoon period, partially offsetting these headwinds.
Also read: UltraTech Cement Q1 Results: Cons profit jumps 17% YoY to Rs 2,599 crore; revenue rises 16%
The ₹1,800-crore cables and wires project is progressing as planned, with about ₹888 crore already invested, trial runs underway and key approvals in place.