The company clocked impressive volume growth and robust operating performance in the December quarter, but a high level of debt and pricing challenges could keep the stock subdued in the near term.

UltraTech Cement, India's biggest cement maker by capacity, reported third-quarter earnings above estimates on Thursday on the back of strong volume growth, sending its shares soaring 7% in afternoon trade.

Despite the decline in profit, the quarter 3 results exceeded Street expectations, with net profit surpassing the estimated Rs 1,195 crore. Revenue also beat forecasts, which had predicted Rs 16,854 crore.

UltraTech Cement reported a 16.5% year-on-year decline in Q3FY25 profit, with a standalone profit after tax of ₹1,434 crore, compared to ₹1,718 crore in the same quarter last year.

UltraTech, India's top cement maker by capacity, signalled better core profit in upcoming quarters as the market absorbed price hikes and demand picked up, after it reported an earnings beat on Thursday on strong volumes.