Ultratech: Good show in 1QFY27 despite tough cost environment

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Ultratech: Good show in 1QFY27 despite tough cost environment

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Ultratech

Good show in 1QFY27 despite tough cost

environment

Reiterate Rating: BUY | PO: 13,400 INR | Price: 11,903 INR

EBITDA/MT at Rs1200+ on strong volumes 20 July 2026

Ultratech report a strong qtr with 13+% YoY domestic volume growth (vs. 7-8% industry Equity

growth) and 3.7% QoQ realization growth helping offset the cost escalation due to the

West Asia conflict. This along with continued progress in ICEM turnaround helped the

Key Changescompany report EBITDA per MT of Rs1214/MT (vs. Rs1296/MT in Mar-26 qtr), which

was better than our estimate of Rs1115/MT. The outlook on 2QFY27 operating costs (Rs) Previous Current

was better than expected, which along demand commentary indicates confidence on 2027E EPS 367.75 369.96

being able to maintain pricing. However, the uncertainty on West Asia conflict continues 2028E EPS 511.34 506.67

with de-escalation being key for our 2H assumption. Reiterate Buy with PO of Rs13400 2029E EPS 638.60 619.93

(marginal change to EBITDA). 2027E EBITDA (m) 203,072.5 203,939.3

2028E EBITDA (m) 258,623.3 256,794.9

2029E EBITDA (m) 308,109.9 300,799.1Navigating an uncertain cost environment

The Jun qtr did see a cost increase due to the West Asia conflict (fuel/packaging costs

up 4-5% QoQ). However, this was better than industry reflecting its cost efficiency Neha Manpuria >>

Research Analyst

programs and turnaround of acquired assets (ICEM EBITDA per MT was Rs600+/MT). BofAS India

While seasonality implies higher operating costs in 2Q (~Rs150-300/MT QoQ +91 22 6632 8307 neha.manpuria@bofa.com

historically), UTCEM commentary on QoQ increase of just Rs130-140/MT in 2QFY27

Charul Agrawal >>

including full impact of the West Asia crisis & higher maintenance.