Substantial Decline in Profit Amid Flat Revenue Growth
- India Cements Limited, a subsidiary of UltraTech Cement, has slipped into losses in the first quarter of the financial year (Q1 FY26), reporting a net consolidated loss of Rs 132.90 crore.
- The company’s net consolidated profit was Rs 58.47 crore in the corresponding quarter a year ago (Q1 FY25), marking a significant decline of Rs 86.37 crore.
- Similarly, in the last quarter (Q1 FY25), the company’s profit stood at Rs 14.68 crore, down from Rs 58.47 crore in the same period a year ago.
The company’s revenue from operations remained flat at Rs 1,024.74 crore (year-on-year) from Rs 1,026.76 crore in the same period a year earlier. However, the revenue declined 14 per cent sequentially from Rs 1,197.30 crore in the preceding quarter.
| Revenue from Operations | Q1 FY25 | Q1 FY26 | Percentage Change |
|---|---|---|---|
| Rs 1,026.76 crore | Rs 1,024.74 crore | Rs 1,197.30 crore | 14% |
The company’s expenses for the quarter under review stood at Rs 1,042.19 crore, falling slightly as compared to Rs 1,190.24 crore in Q1 FY25. However, the expenses were higher than the total revenue (revenue from operation + other income) of Rs 1,033.85 crore, dragging the cement manufacturing firm into the losses.
| Expenses | Q1 FY25 | Q1 FY26 | Percentage Change |
|---|---|---|---|
| Rs 1,190.24 crore | Rs 1,042.19 crore | Rs 1,033.85 crore | 12.5% |
According to the exchange filing, the profit after tax (PAT) before one-time exceptional items was a negative Rs 9.13 crore compared to negative Rs 182.21 crore over the same period last year.
- “The Company is planning a capital expenditure programme over the next 2 years for improving efficiency and reducing operating costs; increasing share of renewable power and improving safety standards,”
- it said in the filing.
- UltraTech acquired the promoter’s stake in the south India-based cement maker.
On the future outlook, the cement manufacturer said that India Cements is poised to grow stronger. In last quarter, India Cements reported a 3.11 per cent annual fall in its revenue to Rs 1,197.3 crore.
“We are optimistic about the future growth prospects of India Cements and are committed to delivering long-term value to our stakeholders,”
UltraTech Cement’s Acquisition of India Cements
India Cements Limited became a subsidiary of UltraTech Cement with effect from December 24, 2024. The acquisition was made to strengthen UltraTech’s presence in the southern region of India.
“The acquisition has further diversified our portfolio and strengthened our position in the Indian cement market,”
UltraTech Cement
UltraTech Cement, the second-largest cement company in India, is known for its high-quality cement and innovative solutions.