Cement Companies Q1 FY27: UltraTech, ACC Post Growth as Ambuja Cement Sales Fall 14%

India’s cement sector had a mixed start to FY27, with major companies reporting different sales trends for the June quarter. UltraTech Cement recorded 13.1% growth in domestic volumes, while ACC reported cement sales of 10 million tonnes. Ambuja Cement, on the other hand, saw sales volumes drop 14% from the previous quarter to 17.1 million tonnes. The July 2026 results point to softer demand, higher costs, and a stronger focus on product mix.

UltraTech Cement Q1 FY27: Volume Growth Leads the Sector

Sales Volume and Financial Performance

UltraTech Cement reported one of the stronger Q1 FY27 performances among India’s major cement producers. For the quarter ended June 30, 2026, consolidated cement sales volume increased 12.2% YoY to 41.31 million tonnes. Domestic grey cement volumes rose 13.1% to 39.2 million tonnes. Capacity utilisation stood at 81%, with domestic capacity at 200.1 MTPA.

The increase also reflects UltraTech’s integration of acquired assets, including India Cements. The additions helped the company lift volumes while maintaining its existing operating base.

Revenue and Profit Growth

UltraTech reported ₹24,465 crore in consolidated net sales, an increase of 16% YoY. PAT rose 17.2% to ₹2,604 crore, while PBIDT reached ₹5,146 crore. The company attributed the results to higher volumes, improved execution, and operating efficiencies.

🏗️ UltraTech Cement Gets CRISIL AAA/Stable Rating; ₹30,000 Cr Expansion Pipeline

👉🏻 CRISIL assigns AAA/Stable to ₹250 Cr NCDs; existing ratings reaffirmed
👉🏻 Cement capacity at 205.5 MTPA; ~37 MTPA addition planned
👉🏻 ~₹30,000 Cr organic capex planned across FY27–FY29
👉🏻…

— VLUXE Investments (@vluxeinvests) August 17, 2026

The stock remains under close watch. Motilal Oswal retained its Buy rating and set a ₹13,800 target price, pointing to healthy demand and UltraTech’s expansion plans.

ACC Q1 FY27: Premiumisation Offsets a Challenging Volume Quarter

Sales and Profit Trends

ACC reported 10 million tonnes of cement sales in Q1 FY27, compared with 10.7 million tonnes in the same quarter a year earlier. Revenue declined 8.2% YoY to ₹5,808 crore, while operating EBITDA fell to ₹457 crore. PAT dropped 60.9% to ₹147 crore.

The lower volumes came alongside some improvement in the sales mix. Trade share increased by five percentage points to 81%, while premium products accounted for 44% of trade sales, compared with 41% previously.

Why ACC’s Product Mix Matters?

ACC is putting more focus on value rather than chasing volume alone. A higher share of premium products can help support realisations and retain customers when demand is softer.

The proposed ACC-Ambuja merger is also moving ahead. SEBI issued its NOC on June 4, 2026, followed by the NCLT application on June 29.

Brokerages remain cautious about ACC’s earnings. Nomura maintained a Reduce rating and later lowered its target to ₹1,150, citing weak profitability and continued cost pressure.

Ambuja Cement Q1 FY27: Sales Volumes Fall, but Margins Recover

Volume Decline and Financial Pressure

Ambuja Cement had a weaker Q1, with results reported on July 28, 2026. Cement sales volume declined 7% YoY to 17.1 million tonnes. On a sequential basis, volumes were 14% lower than in Q4 FY26. Revenue fell 7.7% YoY to ₹9,500 crore, while consolidated profit declined about 37% to ₹660 crore.

Weaker construction activity during the monsoon affected volumes. Higher petcoke and freight costs, partly linked to disruptions in West Asia, also added pressure.

Cost Control Becomes the Focus

Ambuja is moving towards a “value over volume” strategy. EBITDA per tonne increased to around ₹931, up 27% QoQ, even as sales volumes declined. Better cost control and the product mix helped protect margins.

Nirmal Bang maintained a Buy view following the results. Nomura also retained its Buy rating but reduced its target to ₹500, citing execution risks.

UltraTech vs ACC vs Ambuja: What Q1 FY27 Reveals About Cement Demand

The three companies had very different Q1 performances. UltraTech combined higher volumes with stronger profit growth. ACC dealt with lower volumes but increased its premium product share. Ambuja faced the biggest volume pressure, although its per-tonne earnings improved.

At UltraTech’s 26th AGM, Aditya Birla Group Chairman Mr. Kumar Mangalam Birla addressed shareholders, speaking on UltraTech’s commitment to partnering India’s growth story and on scaling UltraTech’s capacity to over 240 MTPA by FY28.

Read: https://t.co/rGrkgGlCSa pic.twitter.com/06tf5juZUA

— UltraTech Cement Ltd (@UltraTechCement) August 17, 2026

For FY27, cement demand, pricing, fuel costs and product mix will remain important for earnings. Monsoon-related weakness may weigh on the next quarter. Infrastructure and housing activity could provide support as construction conditions improve.

What Investors Should Watch in Q2 FY27?

The next quarter will give investors a better view of cement demand and pricing. Areas to watch include:

• Cement prices and realisations.
• Petcoke, coal and freight costs.
• Recovery in demand after the monsoon.
• Capacity utilisation and new capacity additions.
• Progress on the ACC-Ambuja integration.

For stock investors, Meyka’s AI stock analysis tool offers another way to assess technical and fundamental signals. For UltraTech Cement (NSE: ULTRACEMCO), Meyka currently shows a neutral technical setup, with RSI around 49, weak ADX and mixed momentum signals. Its model gives a one-year price forecast of about ₹14,032, although forecasts can change and are not certain.

Conclusion

Q1 FY27 produced different results across India’s major cement companies. UltraTech Cement led on volume and earnings growth. ACC increased its focus on premium products despite weaker profits. Ambuja Cement dealt with lower volumes and higher costs, while its value-focused approach helped improve margins. In Q2 FY27, investors will watch demand, fuel costs, cement realisations and capacity utilisation closely.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.