- Event Type: Q1 FY27 Earnings Conference Call hosted by Nomura on July 28, 2026
- Management Participants:
- Mr. Karan Adani – Director – Ambuja Cements Limited
- Mr. Vinod Bahety – Chief Executive Officer – Ambuja Cements Limited
- Mr. Rohit Soni – Chief Financial Officer – Ambuja Cements Limited
- Mr. Deepak Balwani – Head Investor Relations – Ambuja Cements Limited
- Moderator: Mr. Jashandeep Chadha – Nomura
- Financial Period Discussed: Quarter ended June 30, 2026 (Q1 FY27)
- Key Financial Highlights:
- Revenue: INR 9,500 crores
- Operating EBITDA: INR 1,589 crores
- EBITDA Margin: 16.7% (improved 331 basis points)
- EBITDA per ton: INR 931
- Net cost reduced by INR 206 per metric ton sequentially to INR 4,241
- PAT: INR 660 crores
- Net worth: ~INR 72,000 crores
- Operational Metrics:
- Trade sales share improved from 74% to 78% of overall sales
- Premium products comprise 34% of trade sales
- Clinker factor improved by ~3% to 64%
- Share of blended cement increased to 85%
- Overall capacity utilization: 65%
- RE power capacity: 973 megawatts (up almost 500 MW over past year)
- WHRS capacity: 228 megawatts
- Power cost reduced from INR 5.9 to INR 4.9 per kWH
- Strategic Priorities:
1. Profitable growth with focus on value creation
2. Structural cost leadership targeting INR 4,250/ton for FY27
3. Disciplined capital allocation
4. Building future-ready enterprise through technology and sustainability
- Capacity Expansion Update:
- Current capacity: 109 million tons
- Projects commissioning: Dahej (1.2 MT), Salai Banwa (2.4 MT), Bhatinda (1.2 MT), Jodhpur (2 MT)
- Expected by FY27-end: 119 million tons capacity
- Capex guidance: ~INR 6,500 crores for FY27
- Cost Savings Initiatives:
- Expected savings of INR 130-150/ton through various initiatives
- Reduction in lead distance (additional 15 km expected)
- Raw material logistics optimization
- Increased RE power consumption
- Targeted reductions in heat consumption (5 kcal/kg clinker)
- Power consumption reduction (2-3 units/ton cement)
- Regional Performance:
- North: Continued leadership in EBITDA, grew 2% Y-o-Y in trade volumes
- Central: Strong market with higher proportion of premium cement
- West: Balanced between trade and non-trade, positive growth
- East: Sustained trade volumes with healthy EBITDA margins
- South: Conscious reduction in lower margin volumes
Additional Notes Section
- The transcript was uploaded to the company website on August 03, 2026, following the July 28, 2026 earnings call
- The document contains the complete Q&A session with analysts from various brokerages including ICICI Securities, Cantor Fitzgerald, CLSA, HDFC Securities, and others
- Management addressed questions on volume strategy, cost reduction initiatives, capacity expansion plans, regional performance, and integration of acquired assets (Orient, Penna, Sanghi)
- The company temporarily suspended operations at ~3.5 million tons of capacity for optimization, expected to last approximately six months