UltraTech, JK Cement top picks as brokerages stay bullish on cement sector as demand holds firm – Markets

UltraTech, JK Cement top picks as brokerages stay bullish on cement sector as demand holds firm - Markets


Indian cement stocks were in focus as brokerages Motilal Oswal Financial Services (MOSL) and Nuvama Institutional Equities reiterated a positive outlook for the sector, citing resilient domestic demand and stable pricing trends despite rising cost pressures. Analysts expect cement demand to remain healthy in the March quarter, supported by steady volumes, while recent corrections in cement stocks are seen as attractive entry opportunities, with UltraTech Cement emerging as the preferred large-cap bet and JK Cement leading mid-cap picks.

UltraTech Cement reported a consolidated net profit of Rs 1,729.44 crore for December quarter FY26. It had posted a net profit of Rs 1,363.44 crore in the October-December period a year ago, the Aditya Birla group flagship firm said in a regulatory filing.

Revenue from operations was at Rs 21,829.68 crore in the December quarter of FY26. It was at Rs 17,778.83 crore a year earlier. UltraTech’s total consolidated income, which includes other income as well, was at Rs 21,965.26 crore in the December quarter. Sales volume was up 15 per cent to 33.85 metric tonne (MT). Its domestic grey cement production was at 36.37 MT, up 15.4 per cent in the December quarter.

JK Cement reported a mixed set of consolidated numbers for the third quarter of FY26, with revenue and operating performance showing healthy growth despite a decline in net profit. Revenue rose 18.2 per cent year-on-year to Rs 3,463 crore in Q3 FY26, compared with Rs 2,930.3 crore in the year-ago period, supported by steady demand and higher volumes. EBITDA for the quarter increased 13.2 per cent to Rs 557.4 crore, up from Rs 492.2 crore in Q3 FY25, reflecting operating strength amid cost pressures.

However, profitability saw some moderation, with consolidated profit falling 8.6 per cent year-on-year to Rs 173.6 crore from Rs 189.9 crore in the corresponding quarter last year. EBITDA margin declined by 70 basis points to 16.1 per cent in Q3 FY26 from 16.8 per cent a year earlier, largely due to elevated input costs.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



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