Please follow the below steps :
1) Add the below script in the app/design/frontend/your theme/default/template/catalog/product/list/toolbar.phtml
<script>
jQuery(document).ready(function(){
if(!jQuery('#current').length){
jQuery("body").append('<input type="hidden" name="current" id="current" value="1" />');
jQuery("body").append('<input type="hidden" name="next" id="final" value="<?php echo $this->getLastPageNum(); ?>" />');
jQuery(window).scroll(function(event){
setTimeout(function()
{
var current_val=parseInt(jQuery("#current").val());
var final_val=parseInt(jQuery("#final").val());
var next_val=parseInt(current_val)+1;
if(final_val>current_val){
jQuery("#ajax-load").css("display","block");
jQuery.ajax({
url: "<?php echo $this->getPagerUrl(); ?>?p="+next_val,
async:false,
success: function(html){
var $result = jQuery(html).find('.products-grid').children();
jQuery(".products-grid").append($result);
jQuery("#ajax-load").css("display","none");
jQuery("#current").val(next_val);
}
});
}
});
});
}
});
</script>
2) Add image tag to show ajax loader in the app/design/frontend/ultimo/default/template/catalog/product/list.phtml path
<div id="ajax-load" style="display:none"><img src="<?php echo $this->getSkinUrl('images/ajax-loader.gif', array('_secure'=>false)); ?>" /></div>