Ambuja Cements Limited – Investor Presentation Summary

Key Operational Highlights

  • Current cement capacity: 113.5 MTPA
  • Q2 FY27 capacity addition: +4.6 MTPA commercial production commenced
  • H2 FY27 pipeline: +5.6 MTPA (3.2 MTPA ramping up; 2.4 MTPA to be commissioned)
  • Q1 FY28 expected: +4.0 MTPA Maratha clinker line
  • Trade share increased by 6 percentage points to 74% YoY in Q2 FY27
  • Premium products rose by 2 percentage points to 37% of trade sales
  • Pan India presence in 31 states & union territories and 665+ districts

Key drivers of operational performance:

  • Focus on improving trade mix and rationalizing low-margin volumes
  • Increased share of blended cement
  • Trade volumes grew 8.6% YoY
  • Continued focus on institutional business growth through solutions-led approach

Segment-wise Performance

Not specified in detail

Financial Highlights

Consolidated Q2 FY27:

  • Revenue: ₹9,197 crore (0% YoY change)
  • EBITDA: ₹1,271 crore (-28% YoY)
  • PAT Reported: ₹236 crore (-90% YoY)
  • PAT Normalised: ₹300 crore (-54% YoY)
  • EPS (diluted): ₹0.78 (-89% YoY)
  • EBITDA Margin: 13.8% (-540 bps YoY)
  • EBITDA per metric ton: ₹770 (-27% YoY)
  • Volume: 16.5 MnT (-1% YoY)

Consolidated H1 FY27:

  • Revenue: ₹18,697 crore (-4% YoY)
  • EBITDA: ₹2,860 crore (-23% YoY)
  • PAT Reported: ₹896 crore (-73% YoY)
  • PAT Normalised: ₹895 crore (-44% YoY)
  • EPS (diluted): ₹3.08 (-71% YoY)
  • EBITDA Margin: 15.3% (-380 bps YoY)
  • EBITDA per metric ton: ₹852 (-20% YoY)
  • Volume: 33.6 MnT (-4% YoY)

Standalone Q2 FY27:

  • Revenue: ₹6,121 crore (+10% YoY)
  • EBITDA: ₹746 crore (+3% YoY)
  • PAT Reported: ₹114 crore (-90% YoY)
  • EPS (diluted): ₹0.46 (-90% YoY)
  • EBITDA Margin: 12.2% (-80 bps YoY)
  • EBITDA per metric ton: ₹653 (+4% YoY)
  • Volume: 11.4 MnT (-1% YoY)

Drivers of financial performance:

  • Elevated fuel and logistics costs due to higher petcoke and coal prices
  • Constrained coal availability
  • Increased diesel and packaging costs
  • Geopolitical issues contributing ~₹228 per metric ton impact in Q2 FY27
  • Commercial diesel prices increased by 25-30% in past 6 months

Geographical Revenue Split

Not specified

Balance Sheet Snapshot

As on September 30, 2026:

  • Total Assets: ₹91,564 crore
  • Property, Plant and Equipment: ₹34,711 crore
  • Capital Work-in-Progress: ₹9,727 crore
  • Goodwill: ₹13,546 crore
  • Other Intangible Assets: ₹9,404 crore
  • Cash and Cash Equivalents: ₹1,070 crore
  • Total Equity: ₹72,238 crore
  • Borrowings: ₹55 crore
  • Company remains debt free with highest credit ratings: Crisil, CARE, IndiaRatings & ICRA - AAA (Stable) / A1+

Capex & Cash Flow Health

H1 FY27 Cash Flow:

  • Operating EBITDA: ₹2,860 crore
  • Cash Flow from Operating Activities: ₹2,916 crore
  • Capex: ₹2,963 crore
  • Cash Flow from Investing Activities: ₹(2,879) crore
  • Dividend paid: ₹(569) crore
  • Finance Expenses: ₹(168) crore
  • Net decrease in cash: ₹(700) crore
  • Opening cash balance: ₹1,770 crore
  • Closing cash balance: ₹1,070 crore

Strategic & R&D Initiatives

Capacity Expansion Projects:

  • 14 projects underway to add 29.7 MTPA cement capacity
  • Projects include Maratha Line 2 (4.0 MTPA clinker, May'27), Amravati (2.9 MTPA, Sep'27), Assam units (4.0 MTPA clinker + 5.8 MTPA cement, Dec'28)
  • Mundra expansion (2.3 MTPA clinker + 2.9 MTPA cement, May'28)
  • Multiple grinding units across Gujarat, Maharashtra, Jharkhand, Bihar, Uttar Pradesh

Cost Optimization Initiatives:

  • Raw material mix optimization
  • BCFC transport mode of FlyAsh reducing raw material costs
  • Use of Wagon Tipplers
  • Fuel mix optimization, reducing reliance on imports
  • Higher use of WHRS and AFR
  • Petcoke consumption optimization with more use of domestic coal
  • Modal shift in transport mode and fleet optimization
  • EV induction program: 150 EV trucks planned by December 2027

Industry Trends & Business Environment

Macro Economic Factors:

  • RBI FY27 inflation forecast raised to 5.2% (from 5.0%)
  • RBI GDP growth outlook raised to 7.1% (from 6.7%)
  • Industry activity remained resilient supported by strong manufacturing
  • Favourable Kharif sowing supported farm output and rural demand
  • Ongoing geopolitical risks continue to weigh on growth outlook

Policy Tailwinds:

  • NITI Aayog's roadmap promotes higher blending and fly-ash substitution
  • CCTS emission-intensity targets incentivise decarbonisation
  • Rail-freight reforms and dedicated bulk cement terminals to improve distribution efficiency
  • GST reduced from 28% to 18% on cement

Cement Demand Drivers:

  • Housing & Infrastructure: PMAY and PM Gati Shakti continue to drive demand
  • Gati Shakti Pipeline: 352 projects worth ₹16.1 lakh crore evaluated
  • Large Projects: Mumbai–Ahmedabad Bullet Train adds incremental demand
  • Data Centres: ~USD 30 Bn cumulative construction opportunity by FY30
  • FY27 Industry Outlook: 6-7% cement demand growth expected

Management Commentary & Growth Outlook

Strategic Outlook:

  • Volumes expected to grow ahead of the industry in H2 FY'27
  • Supported by calibrated & returns-focused expansion strategy
  • Trade mix improvement expected to help improved EBITDA in coming quarters
  • One Cement platform, digital initiatives and synergies with group expected to reduce costs
  • The broader demand environment remains supported by continued infrastructure spending, urbanisation, rural housing and industrial activity

Merger Update:

  • Shareholders approved amalgamation of ACC Limited and Orient Cement Limited with Ambuja Cements Limited
  • Completion expected in FY'27 subject to requisite regulatory, statutory and NCLT approvals
  • Expected to simplify corporate structure, unlock operating synergies and support long-term stakeholder value

ESG Updates

ESG Credentials:

  • Sustainalytics Rating: #7 of 109 for Ambuja, #6 of 109 for ACC
  • S&P CSA Net Strength: 80/90 for Ambuja, 82/89 for ACC
  • CDP Ratings: Climate B/Water A/SEA A for Ambuja; Climate A/Water A/SEA A for ACC
  • CareEdge ESG 1+ leadership category for both Ambuja and ACC
  • CRISIL: 60 (Adequate) for Ambuja, 62 (Strong) for ACC
  • Share of green power consumed plus sold: 61% of total power consumption

Corporate Social Responsibility:

  • Q2 FY27 CSR focused on building resilient communities across water, agriculture, livelihood & health
  • Integrated community model spanning water security, sustainable farming, women-led livelihoods and community health
  • Farm-to-plant linkage: farmer-sourced biomass supplied to Ambuja Cements
  • 19,872 truckers & allied population covered under health outreach

Accolades & Awards

  • 10 awards for excellence in energy efficiency at CII 27th Energy Excellence Summit 2026
  • 3 ET Digi+ Awards for excellence in festive marketing, branded content & integration and B2B marketing
  • 11 awards at 8th ICC OH&S Awards 2026 in different categories