UltraTech Cement Q3 PAT jumps 32% YoY. Should investors buy, sell, or hold?

The shares of UltraTech Cement, a flagship company of the Aditya Birla Group, rose 3.7% on Tuesday (January 27) to their intraday high of Rs 12,829.40 on the BSE after it reported a sharp 32% year-on-year (YoY) rise in its profit after tax (PAT) for the third quarter of the financial year 2025-26 (Q3FY26). The company posted a PAT of Rs 1,792 crore, compared to Rs 1,359 crore in the corresponding quarter of the previous year.

The company’s net sales rose 22.5% YoY to Rs 21,506 crore in the quarter, driven by steady operational execution.

UltraTech Cement’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 29% YoY to Rs 4,051 crore in Q3FY26, a notable jump from Rs 3,142 crore in Q3FY25. On a sequential basis, EBITDA rose from Rs 3,268 crore in Q2 FY26, indicating a consistent improvement in the company's operating performance.


The company's operating EBITDA per metric tonne (EBITDA/Mt) increased to Rs 1,051 per tonne, reflecting a year-over-year rise of Rs 140 and a quarter-over-quarter improvement of Rs 97.

Here is what various brokerage firms say:

Goldman Sachs: Buy| Target price: Rs 14,690

Goldman Sachs has reiterated its Buy rating on UltraTech Cement and raised its target price to Rs 14,690 from Rs 12,900, reflecting confidence in the company’s outlook.

The brokerage cited a strong quarterly performance, with UltraTech demonstrating leadership in volumes, pricing power, and cost efficiency. It noted that expansion initiatives and cost optimisation efforts remain on track, underscoring operational discipline.

Goldman Sachs added that cement demand in India and brand conversion efforts are progressing well. Although EBITDA estimates have seen minor adjustments, the core investment thesis remains intact.

The firm cited a valuation roll-forward to FY28 as a key reason for the higher revised target price, aligning with a long-term positive outlook for the stock.

Also read: 14 penny stocks crash up to 80% in three months. Check full list here

Morgan Stanley: Overweight| Target price: Rs 14,100

Morgan Stanley has maintained its Overweight rating on UltraTech Cement, with a target price of Rs 14,100. The brokerage noted that the company's volume growth has outpaced estimates, accompanied by continued gains in market share.

According to the firm, industry demand momentum remains strong, aided by a recovery in infrastructure activity, which is supporting cement volumes. Additionally, cement price hikes of Rs 6–8 per bag implemented in January have been sustained so far, adding to pricing stability.

Morgan Stanley also pointed to cost-saving initiatives and economies of scale as key drivers of earnings compounding. The firm reported that revenues came in ahead of estimates, with EBITDA significantly exceeding expectations.

Elara Capital: Accumulate| Target price: Rs 14,553

Elara Capital has also reiterated its Accumulate rating on UltraTech Cement, while raising the target price to Rs 14,553, up from the previous target of Rs 14,088. The revision reflects an updated valuation roll forward.

The brokerage noted that the company achieved an EBITDA beat, attributed to better-than-expected margins. Additionally, cost efficiency savings are tracking ahead of target, indicating effective operational execution.

It was observed that volume growth has been supported by recent price hikes, reinforcing the company’s pricing power. In line with these developments, the EBITDA estimate for FY26 has been revised upwards. The increase in the target price is backed by a valuation roll forward, aligning with the company’s improved financial trajectory.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)