Consolidated Financial Performance Q1 FY'27

Ambuja Cements Limited reported its unaudited financial results for the quarter ended June 30, 2026. The company achieved quarterly sales volume of 17.1 million tonnes (MnT) of cement. Revenue from operations stood at Rs 9,500 crore.

Operating EBITDA was Rs 1,589 crore with a margin of 16.7%, representing a 3.3 percentage point improvement quarter-on-quarter (QoQ). Profit After Tax (PAT) was Rs 660 crore, with earnings per share (diluted) of Rs 2.32.

The company reported EBITDA per tonne of Rs 931, representing a 27% increase QoQ from Rs 1,069 in Q4 FY'26. Compared to Q1 FY'26, revenue declined from Rs 10,289 crore and operating EBITDA decreased from Rs 1,961 crore (19.1% margin).

Operational Metrics and Performance Drivers

Key operational improvements drove the performance:

  • Trade share increased by 4 percentage points year-on-year (YoY) to 78%
  • Premium products reached 34% of trade sales, up 1 percentage point YoY
  • Clinker factor improved by 2.1 percentage points YoY to 63.7%
  • Achieved cost reduction of Rs 206 per metric tonne (PMT) sequentially through focused cost optimization initiatives
  • Renewable energy capacity increased by 75 MW to 973 MW
  • Green power share increased to 34% from 28% YoY and 32% in Q4 FY'26

Operational cost metrics:

  • Kiln fuel cost: Rs 1.66/'000 kCal (vs Rs 1.59/'000 kCal in Q1 FY'26 and Rs 1.61/'000 kCal in Q4 FY'26)
  • Power cost: Rs 6.0/kWh (vs Rs 5.9/kWh in both Q1 FY'26 and Q4 FY'26)
  • Primary lead: 249 kms (improved from 269 kms YoY and 262 kms QoQ)
  • Direct dispatch: 58% (vs 57% YoY)

Balance Sheet Strength and Credit Profile

The company maintains a debt-free balance sheet with:

  • Net worth of Rs 71,954 crore
  • Cash & cash equivalents of Rs 844 crore
  • Highest credit ratings of AAA/A1+ from CRISIL and CARE
  • Healthy operating cash flows supporting capex and growth programs

Capacity Expansion Update

Cement capacity stood at 109 MTPA as of June 30, 2026, with expansion plans on track:

  • Expected to reach 119 MTPA by end of FY'27
  • Trial production commenced at: Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA), and Jodhpur (2 MTPA)
  • Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA) will have trials in Q2 FY'27
  • Maratha clinker line (4 MTPA) will be commissioned in 2027
  • Continued focus on stabilizing newly commissioned capacities and improving utilization

ESG Initiatives and Sustainability

The company advanced its sustainability agenda through several initiatives:

  • Partnership with UK-based Leilac Limited to establish commercial-scale pathways for low-carbon cement production
  • Ambuja Cements and ACC received GreenPro certification from CII for blended cement portfolio
  • Achieved GRIHA certification across entire blended cement portfolio, including Buildcem and Buildcem Pro range
  • Additional GRIHA certifications for Life Cycle Assessment (LCA) and Innovation based on Environmental Product Declaration (EPD)
  • Launched Digital BRSR for FY 2025-26 with interactive ESG disclosures
  • Progress in renewable energy, water conservation, circular economy, resource efficiency, tree plantation, and community development

Digitalization Advancements

The company strengthened its digital capabilities across four key areas:

  • Infrastructure & Cybersecurity: Enhanced cyber resilience through OT security deployments, IT-OT segregation, and infrastructure upgrades
  • Manufacturing: Improved operational visibility through IoT-enabled predictive maintenance, automation, and digital knowledge management systems
  • Enterprise Digitalization: Advanced business processes through MDM, DIGIPIN, Invoice-to-Pay automation, One Connect rollout
  • AI & Analytics: Expanded AI-enabled decision-making through DigiNav NLP and real-time access to 40+ business KPIs

Branding and Technical Services

  • Strengthened market positioning of Ambuja Kawach and ACC Gold through outdoor branding and digital engagement
  • Adani Cement brands won five Silver Awards at The Mommys Awards 2026 for brand storytelling and creativity
  • Enhanced engagement through participation in National Conclave for Building Materials organized by NAREDCO and Bharat Buildcon
  • Technical services engagement: 36,794 ACT sites, 237 skill-building workshops, 323 technical events reaching over 14,000 participants, generating 301,347 leads

Industry Impact and Outlook

The Indian cement sector faced cost pressures during Q1 FY'27 due to:

  • Higher prices of imported fuels (petcoke and thermal coal)
  • Elevated freight and logistics costs resulting from geopolitical developments in West Asia
  • Impact expected to coincide with seasonally weaker Q2 due to 60-90 day fuel inventory cycle

Company mitigation strategies include fuel mix optimization, renewable energy adoption, logistics efficiencies, focus on higher-margin markets, and disciplined cost management.

Industry outlook remains constructive with:

  • India's FY'26 GDP growth at 7.7%
  • Cement demand expected to remain soft at ~5% for FY'27
  • Long-term support from sustained infrastructure investments, urbanization, and housing demand
  • Near-term demand may be impacted by seasonal monsoon softness, geopolitical uncertainties, and input cost volatility

Management Commentary

Mr. Vinod Bahety, Whole Time Director and CEO, stated: "We have started FY'27 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."

He added: "Looking ahead, we are confident on continuing our momentum and improve our cost structure further. We are well on track to increase our capacity to 119 MTPA by the end of FY'27... We are firmly on course to deliver cost reduction of approximately Rs 250 PMT to achieve targeted cost of Rs 4,250 PMT by end of FY'27."

Company Background

Ambuja Cements Limited is the 9th largest cement company globally, part of the Adani Portfolio. The company has cement capacity of 109 MTPA across 24 integrated manufacturing plants and 22 grinding units. Key sustainability initiatives include investments in 1 GW of renewable energy, 376 MW of Waste Heat Recovery Systems by FY'28, and commitment to net-zero by 2050 with SBTi-validated targets.