Ambuja Cements, part of the Adani Portfolio, posted robust Q1 FY27 results with EBITDA per tonne up 27% quarter-on-quarter to Rs 931, driven by higher trade and premium product shares. The firm targets capacity expansion to 119 MTPA by FY’27 and aims to reduce costs further, supported by energy efficiency and disciplined management.
India
-Oneindia Staff
Ambuja Cements Limited, part of the diversified Adani Portfolio and the world’s ninth largest cement company, has reported a robust performance for the first quarter ended June 30, 2026, with operating EBITDA per tonne surging 27% quarter-on-quarter to Rs 931.
The company recorded a quarterly sales volume of 17.1 million tonnes, with trade share rising 4 percentage points year-on-year to 78%, and premium products growing 1 percentage point to 34%. Quarterly revenue stood at Rs 9,500 crore, while operating EBITDA came in at Rs 1,589 crore, with margins expanding by 3.3 percentage points to 16.7% on a sequential basis.
Ambuja Cements, part of the Adani Portfolio, posted robust Q1 FY27 results with EBITDA per tonne up 27% quarter-on-quarter to Rs 931, driven by higher trade and premium product shares. The firm targets capacity expansion to 119 MTPA by FY’27 and aims to reduce costs further, supported by energy efficiency and disciplined management.
The clinker factor improved by 2.1 percentage points to 63.7% year-on-year. Profit after tax for the quarter was Rs 660 crore, with diluted earnings per share at Rs 2.32.
Management Commentary
Vinod Bahety, Whole Time Director and CEO of Ambuja Cements Limited, said the company has started FY’27 with strong momentum, driven by its focus on value-led growth, premiumisation and disciplined execution. He noted that higher trade sales and an increased share of premium products strengthened the company’s market mix, resulting in improved profitability and quality of earnings.
Bahety said the company achieved a sequential cost reduction of Rs 206 per tonne despite temporary headwinds from West Asia geopolitical tensions, through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management. This translated into a 331 basis points quarter-on-quarter expansion in EBITDA margin.
Looking ahead, he added that the company remains on track to increase capacity to 119 MTPA by the end of FY’27, with new units at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli and Warisaliganj. The company is targeting a further cost reduction of approximately Rs 250 per tonne to reach a targeted cost of Rs 4,250 per tonne by the end of the fiscal year.
Capacity Expansion
Cement capacity stood at 109 MTPA as of June 30, 2026. Trial production has commenced at Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA) and Jodhpur (2 MTPA), while Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA) will begin trials in the second quarter. The Maratha clinker line (4 MTPA) is expected to be commissioned in 2027.
Balance Sheet and Ratings
The company continues to maintain a debt-free balance sheet, with a net worth of Rs 71,954 crore and cash and cash equivalents of Rs 844 crore. It holds the highest AAA and A1+ credit ratings from CRISIL and CARE.
Sustainability and ESG Initiatives
Ambuja Cements increased its renewable energy capacity by 75 MW to 973 MW during the quarter, taking its green power share to 34%. The company has partnered with UK-based Leilac Limited to establish one of the world’s largest commercial-scale pathways for low-carbon cement production, supporting its Science Based Targets initiative (SBTi)-validated Net Zero 2050 goals.
Ambuja Cements and ACC also received GreenPro certification from CII for their blended cement portfolio and secured GRIHA certification across the entire blended cement range, including the newly launched Buildcem and Buildcem Pro products. The company also launched its Digital BRSR report for FY 2025-26 during the quarter.
Industry Outlook
The company noted that the Indian cement sector witnessed cost pressures during the quarter due to higher prices of imported fuels such as petcoke and thermal coal, along with elevated freight and logistics costs stemming from the West Asia conflict. Given the 60-90 day fuel inventory cycle, the impact of peak fuel cost inflation is expected to coincide with the seasonally weaker second quarter.
India’s economic fundamentals remain strong, with FY’26 GDP growth at 7.7%, while cement demand is expected to stay soft at around 5% for FY’27. The company said it remains well positioned to outperform industry growth, backed by its brand portfolio, expanding ready-mix concrete footprint, premiumisation strategy and cost leadership initiatives.
