UltraTech Cement share price falls nearly 2% despite 10% rise in Q4 PAT. Should you buy, sell or hold?

UltraTech Cement share price slipped nearly 2% on Tuesday's session despite the company on Monday reported a 10% year-on-year (YoY) rise in its consolidated net profit at ₹2,482.04 crore, while revenue from operations rose by 13% YoY to ₹23,063.32 crore. UltraTech Cement share price opened at ₹12,200.05 apiece on the BSE, the cement stock touched an intraday low of ₹11,923.75 per share, and an intraday high of ₹12,200.10.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One highlighted that The overall trend for the UltraTech Cement shares is positive. However, today we are seeing profit booking with prices down by around a percent. Strong support is seen around ₹11,600 whereas ₹12,500 seems to be an immediate upside.

“A sustained move above ₹12,200 could accelerate gains towards 12,800, with the breakout’s eventual target placed at 14,000. Though volumes during the base were steady, institutional accumulation has yet to emerge clearly. The price structure remains constructive, and if follow-up buying is backed by strong volumes, the stock could witness a sharp upside in the coming sessions,” added Anshul Jain, Head of Research at Lakshmishree Investments.

Q4 Results

In the quarter, UltraTech's total sales volumes amounted to 41.02 million metric tonnes.

In FY25, UltraTech "recorded annual sales volumes of 135.83 million metric tonnes, making it one of the largest globally (excluding China)," it stated.

UltraTech Cement reported a net profit of ₹6,039.64 crore for the full fiscal year 2025, with total income reaching ₹76,699.30 crore, compared to ₹7,003.96 crore from the previous year.

Furthermore, UltraTech is aggressively increasing its capacity to sustain its market leadership, having added 42.60 million tonnes per annum (MTPA) through both organic growth and acquisitions in FY25.

This resulted in a decline in profit after tax from ₹7,005 crore to ₹6,039 crore, primarily due to higher interest and depreciation costs.

As part of its capacity expansion initiative, UltraTech launched 17.40 MTPA capacity at various sites across the country during FY25. It also established its inaugural bulk terminal in Lucknow, Uttar Pradesh, with a cement handling capacity of 1.8 MTPA, the company noted, and added that UltraTech's consolidated domestic grey cement capacity has now reached 183.36 MTPA.

Alongside its international capacity of 5.4 MTPA, UltraTech's total global capacity is currently at 188.76 MTPA.

Meanwhile, the Gautam Adani-led group, which entered the cement sector in September 2022 by acquiring Ambuja Cement from the Swiss company Holcim for cash proceeds of USD 6.4 billion (approximately ₹51,000 crore), is also accelerating its efforts.

Should you buy, sell or hold?

Brokerage Nuvama Institutional Equities noted that UltraTech Cement experienced approximately 17% year-on-year consolidated volume growth in Q4FY25 (with an organic growth of around 6% YoY, surpassing the industry growth of about 4%).

The reported domestic operating EBITDA per ton (not including Kesoram and India Cements) was ₹1,270 (blended EBITDA per ton was ₹1,126), supported by improved realizations and operational efficiency. The management anticipates achieving double-digit organic volume growth in FY26E. UltraTech Cement is on track to achieve roughly 211 million tons per annum of domestic capacity by FY27.

“Factoring in a better pricing environment, we are revising upwards FY26E/27E EBITDA by 2%/1%. Maintain ‘HOLD’ with a revised target price of ₹11,859 ( ₹11,574 earlier) based on Q4FY27E 18x EV/EBITDA,” the brokerage added.

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