UltraTech Cement Q1 profit jumps 17%, brokerages hike targets
UltraTech Cement reported a 17% rise in first-quarter profit and announced a move into wires and cables, prompting multiple brokerages to raise their price targets on confidence in India's infrastructure demand.
UltraTech Cement reported a 17% year-on-year increase in consolidated net profit to Rs 2,599 crore for the first quarter of fiscal 2027, up from Rs 2,226 crore a year earlier. Revenue rose 16% to Rs 24,648 crore over the same period. The results, released on Monday, underscore the company's ability to expand earnings in a challenging operating environment.
Beyond the quarterly numbers, management signaled a strategic expansion by preparing to launch a wires and cables business in the third quarter. The company plans to invest Rs 1,800 crore in the new venture, with Rs 888 crore already committed as of June 2026. This diversification positions UltraTech to capture a larger share of India's broader construction supply chain.
Analysts responded positively to the earnings and the company's strategic pivot. “The giant keeps growing stronger,” JM Financial said, raising its target price to Rs 14,500 from Rs 13,850 while maintaining a 'Buy' rating. Motilal Oswal noted that earnings landed in line with estimates and highlighted that management remains highly constructive on medium-term demand. This optimism is anchored in a robust pipeline of infrastructure projects, healthy housing demand, urban redevelopment, and sustained commercial real estate activity.
Nuvama retained its 'Buy' call and lifted its price target to Rs 15,209 from Rs 14,502, implying roughly a 28% upside from the stock's previous close of Rs 11,903. The brokerage attributed its bullishness to UltraTech's consistent market share gains and exemplary cost control. However, Nuvama cautioned that the stock's trajectory from here will ultimately be determined by the path of cement prices and fluctuating fuel costs.
Other firms adjusted their models upward as well. Dolat Capital maintained an 'Accumulate' rating while raising its target to Rs 13,205, suggesting an 11% upside. The broader market reaction reflects a consensus that India's infrastructure spending is translating into tangible corporate earnings.
Geojit Investments' Gaurang Shah noted that cement consumption looks quite robust over the longer term, driven by the sheer scale of construction at both the central and state levels. “More importantly, the transformation we are witnessing in the real estate sector is also supporting demand,” Shah said.
