Why UltraTech Cement Share Price is Rising

Indian markets are rising, following a positive trend in Asia after the US-Vietnam trade deal. Investors are now eagerly watching US-India trade relations for potential developments.

In this bullish trend, the cement sector has emerged as a key area, playing a huge role in India's infrastructure and real estate development.

UltraTech cement, India's largest cement manufacturer and a subsidiary of Aditya Birla Group has delivered a strong performance on the bourses recently.

Its share price has surged 13.7% in the past month.

So, what's behind this rally?

Let's break it down.

#1 Grinding Mill Expansion

UltraTech has started its second grinding mill at the Maihar unit in Madhya Pradesh, increasing its production capacity by 1.8 million tons per annum (MTPA).

It has increased its domestic grey cement capacity to 186.8 mtpa and total global cement capacity now stands at 192.3 mtpa.

The company's first mill was launched in March 2025.

#2 Positive Outlook

Cement demand is expected to grow 6-7% in FY26, driven by infrastructure and rural housing.

The cement sector's outlook is positive due to the government's focus on infrastructure development, increased budget allocation, and initiatives for housing and road projects.

The infrastructure segment's share of revenue is expected to rise to 32-34% by FY29 but the housing segment's may drop slightly to 53-58%. The infrastructure and industrial combined share is expected to rise to 42-47% in the next 3-4 years.

#3 Recent Development

UltraTech Cement needs to sell around 7% stake in India Cements, valued over Rs 6.7 billion (bn), to meet public shareholding norms set by capital market regulator.

The company owns 82% of India Cements, after a successful open offer that attracted more sellers than expected, enabling the company to acquire more shares.

However, the regulations require at least 25% public ownership. So, the company will have to bring the stake down to 75%. The company has till 3 February 2026 to meet public shareholding norms.

It can sell 7% stake but if it uses a rights or bonus issue, UltraTech must waive its entitlement to buy those shares.

What's Next?

UltraTech Cement's Board of Directors will meet on 21 July to review and approve the company's financial results for the quarter ending 30 June 2025.

Also, the company will invest Rs 100 bn in FY26, mainly for growth and for environmental and social goals. UltraTech targets 85% green power by FY30, up from 35.7% and aims to increase its alternatives fuel use to 15% by FY27 from 7% currently.

The company expects double-digit growth in FY26, driven by acquisitions and infrastructure demand. It aims to gain market share and reduce costs. It has already reduced costs by Rs 86 per ton and aim to save Rs 300 per ton by FY26.

Ultratech Cement aims to reach 199.6 MTPA capacity by the end of FY27.

How UltraTech Cement Share Price has Performed Recently

UltraTech Cement's share price has risen about 4% in the past five trading sessions and has recorded a strong gain of about 12% over the past month.

The stock touched its 52-week high of Rs 12,579.4 on 3 July 2025 and a 52-week low of Rs 10,053 on 28 February 2025.

About UltraTech Cement

UltraTech Cement is a multinational cement company in India that manufactures grey cement, white cement, and ready-mix concrete (RMC). It's the largest manufacturer of these products in India and the fifth largest in the world.

For more details about the company, you can have a look at UltraTech Cement's factsheet and quarterly results on our website.

For a sector overview, read our cement sector report.

You can also compare UltraTech Cement with its peers:

UltraTech Cement vs Ambuja Cement

UltraTech Cement vs Dalmia Bharat

UltraTech Cement vs Birla Corporation

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