UltraTech Cement reported a strong March quarter, with profit rising over 21% and margins expanding, supported by steady demand and improved operating efficiencies. The country’s largest cement maker also announced a hefty dividend, indicating confidence in its cash flows and balance sheet strength.

Profit and revenue growth

Net profit for Q4 FY26 came in at ₹3,000 crore, up 21.2% from ₹2,475 crore in the year-ago period.

Revenue from operations rose 11.9% year-on-year to ₹25,799 crore, compared with ₹23,063 crore a year earlier, driven by volume growth and stable realisations, according to the company’s exchange filing.

For the full year, the company reported a net profit of ₹8,188 crore, reflecting sustained earnings momentum.

Margins expand on efficiency gains

Operating performance remained robust during the quarter.

EBITDA rose 21.3% to ₹5,600 crore, while margins expanded to 21.7% from 20.0% a year ago, indicating improved operating leverage.

Cost pressures remained visible across key heads such as power and fuel and freight and forwarding, which together account for a major portion of expenses, as detailed in the results.

However, the company was able to offset these pressures through scale benefits, efficiency measures and better cost management, supporting margin expansion.

Management commentary

Managing director KC Jhanwar said the company’s performance was driven by strong execution and operational discipline.

“We have delivered a strong operational performance this quarter, supported by volume growth and continued focus on cost optimisation,” he said.

He added that UltraTech remains well positioned to benefit from sector tailwinds.

“Our scale, network and efficiency initiatives position us well to capitalise on growth opportunities in the cement sector.”

Dividend announced

The board recommended a final dividend of ₹240 per equity share (face value ₹10), translating to a 2400% payout, subject to shareholder approval at the upcoming annual general meeting.

The dividend implies a total payout of around ₹7,072 crore.

Shares of UltraTech Cement rose nearly 2% to an intraday high of ₹12,240 apiece on the NSE on Monday following the results. However, the stock has declined about 0.7% over the past year, broadly in line with the benchmark Nifty 50, which is down nearly 1% over the same period.