Ambuja Cements Begins FY27 On Strong Operational Note, Eyes 119 MTPA Capacity

Adani Group-backed Ambuja Cements Ltd on Tuesday reported a strong operational performance for the first quarter of FY27, driven by higher trade sales, premiumisation and cost optimisation, while reaffirming its plan to expand cement manufacturing capacity to 119 million tonnes per annum (MTPA) by the end of the fiscal.

The company said its EBITDA margin expanded by 331 basis points sequentially to 16.7 per cent despite temporary cost pressures arising from geopolitical tensions in West Asia.

Ambuja Cements achieved a sequential cost reduction of Rs 206 per metric tonne (PMT) through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management.

The company posted a consolidated net profit of Rs 660 crore for the first quarter of FY27.

Revenue from operations stood at Rs 9,500 crore during the April-June quarter, while operating EBITDA came in at Rs 1,589 crore.

"We have started FY27 with strong momentum, driven by our focus on value-led growth, premiumisation and disciplined execution. Higher trade sales and an increased share of premium products strengthened our market mix, resulting in improved profitability and quality of earnings," said Vinod Bahety, Whole Time Director and CEO of Ambuja Cements.

The company said it remains on track to increase its cement manufacturing capacity to 119 MTPA by the end of FY27 through the commissioning of new plants at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli and Warisaliganj.

Trial production has already commenced at Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA) and Jodhpur (2 MTPA), while trial runs at Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA) are expected to begin in the second quarter.

Ambuja Cements maintained a debt-free balance sheet during the quarter, with a net worth of Rs 71,954 crore and cash and cash equivalents of Rs 844 crore.

Looking ahead, the company said India's long-term cement demand outlook remains positive, supported by continued infrastructure spending, urbanisation and housing demand, although near-term demand may remain subdued due to the monsoon season, geopolitical uncertainties and input cost volatility.

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