- TRADE-LED GROWTH: Trade share climbs six percentage points year-on-year to 74%, strengthening the quality of sales.
- CAPACITY ACCELERATION: 4.6 MTPA commissioned in Q2; another 5.6 MTPA in capacity is scheduled for ramp-up or commissioning in H2 FY27.
- FINANCIAL REALITY CHECK: Q2 operating EBITDA at ₹1,271 crore, with a 13.8% margin, reflects pressure from fuel, logistics and seasonal headwinds.
- COST-CUTTING IMPERATIVE: Ambuja targets ₹4,250 per tonne by FY27, supported by renewable power, logistics optimisation and manufacturing efficiencies.
- ONE CEMENT PLATFORM: Shareholders approve proposed ACC and Orient Cement amalgamations, with completion targeted in FY27, subject to requisite approvals.
NE BUSINESS BUREAU
AHMEDABAD, OCT 30
Premiumisation is strengthening Ambuja Cements’ sales mix, but higher fuel and logistics costs are testing its profitability. The cement major sold 16.5 million tonnes of cement in the September quarter, increased its trade share to 74% and lifted premium products to 37% of trade sales. Yet operating EBITDA fell to ₹1,271 crore, against ₹1,762 crore a year earlier, underlining the challenge of converting sales and capacity expansion into stronger earnings.
Ambuja Cements Limited, part of the diversified Adani Portfolio, reported its financial and operational performance for the quarter ended September 30, 2026, against a backdrop of seasonal weakness, geopolitical uncertainty and elevated energy costs.
The company’s strategy rests on strengthening its trade-led business, improving the product mix, expanding manufacturing capacity and tightening cost controls. It is also advancing the proposed integration of ACC Limited and Orient Cement Limited into Ambuja Cements under its One Cement Platform initiative.
Trade and premium products take centre stage
Ambuja’s consolidated cement sales volume stood at 16.5 million tonnes in Q2 FY27, compared with 16.6 million tonnes in the corresponding quarter last year and 17.1 million tonnes in Q1 FY27.
Despite the marginal year-on-year volume decline, the sales mix showed encouraging movement. Trade volumes increased 8.6% year-on-year, while the trade share rose six percentage points to 74%. Premium products accounted for 37% of trade sales, up two percentage points year-on-year and three percentage points sequentially.
The shift towards trade and premium products supports the company’s focus on improving revenue quality and protecting profitability through a more disciplined market approach.
However, the financial numbers indicate that better product mix alone has not fully offset the pressure from higher input costs.
Q2 financial scorecard: Revenue holds, ebitda declines
Consolidated revenue from operations increased marginally to ₹9,197 crore from ₹9,175 crore in Q2 FY26. Operating EBITDA, however, declined 27.9% year-on-year to ₹1,271 crore from ₹1,762 crore.
The operating EBITDA margin narrowed to 13.8%, against 19.2% a year earlier, while EBITDA per tonne fell to ₹770 from ₹1,061.
Profit after tax stood at ₹236 crore, compared with ₹2,336 crore in Q2 FY26. The previous year’s figure included a ₹1,697-crore income-tax provision reversal, an important consideration when interpreting the year-on-year comparison.
For the first half of FY27, cement sales volume was 33.6 million tonnes, against 35 million tonnes in H1 FY26. Revenue from operations stood at ₹18,697 crore, compared with ₹19,464 crore, while operating EBITDA declined to ₹2,860 crore from ₹3,722 crore.
The figures highlight the need for the company’s planned cost efficiencies, renewable-energy initiatives and additional capacity to translate into a sustained recovery in operating performance.
Vinod Bahety: Focus on quality growth
Vinod Bahety, Whole-time Director and CEO of Ambuja Cements Limited, said the company remained focused on strengthening its operating model despite the challenging environment.
“Our Q2 and H1 FY’27 performance underscores Ambuja’s focus on quality growth despite seasonal and external headwinds. Strengthening trade and premium product mix improved revenue quality, while disciplined execution and cost management supported profitability.”
He said the company was working to strengthen its structural earnings drivers through manufacturing excellence, energy efficiency, logistics optimisation and digitalisation, supported by a debt-free balance sheet.
“Our growth journey continues, with 4.6 MTPA commissioned in Q2 and another 5.6 MTPA ramping up in H2 FY’27.”
The company said the implementation of BCFC infrastructure, a higher share of renewable power, the ramp-up of new capacities and associated additional incentives were expected to support performance in the second half of FY27.
₹4,250-per-tonne cost target in focus
Ambuja is targeting a total cost of ₹4,250 per tonne by FY27. Its reported total cost in Q2 stood at ₹4,410 per tonne, compared with ₹4,182 per tonne after excluding the impact attributed to geopolitical conflicts.
Higher petcoke and coal prices, constrained coal availability, increased diesel expenditure and packaging costs continued to weigh on the industry’s margins.
Logistics costs were moderately higher year-on-year because of diesel prices. However, the company reduced its primary lead distance—the average distance involved in primary transportation—from 265 km in Q2 FY26 to 254 km in Q2 FY27, helping partly offset the pressure.
The share of green power increased to 61%, against 41% a year earlier. Net power cost stood at ₹4.80 per kWh, compared with ₹6 per kWh in Q2 FY26, while kiln fuel cost rose to ₹1.87 per thousand kilocalories from ₹1.60.
Direct dispatch accounted for 57% of dispatches, compared with 59% a year earlier.
The company said planned shutdowns at major plants had been completed successfully and that operational efficiencies, energy optimisation and logistics improvements would remain central to its cost-reduction strategy.
Bahety said: “We are on track achieving our cost target of Rs 4,250 per tonne by FY’27.”
He added that the company would continue to prioritise trade-led growth while strengthening its institutional business through a comprehensive solutions approach focused on value and profitability.
“Volumes are expected to grow ahead of the industry in H2 FY’27, supported by accelerated trade volumes and calibrated institutional sales.”
On pricing, he said the industry expected further improvement over the next couple of months following the recent ₹10–15-per-bag price increase.
Capacity expansion gains momentum
Ambuja commissioned 4.6 million tonnes per annum (MTPA) of additional capacity during Q2 FY27 through three projects:
- Dahej: 1.2 MTPA
- Salai Banwa: 2.4 MTPA
- Kalamboli: 1.0 MTPA
Another 3.2 MTPA of capacity is being stabilised and ramped up in H2 FY27, comprising 1.2 MTPA at Bathinda and 2 MTPA at Jodhpur Penna.
A further 2.4 MTPA is expected to be commissioned at Warisaliganj in H2 FY27.
Together, the ramp-up and proposed commissioning represent 5.6 MTPA of capacity targeted for the second half, strengthening the company’s ability to serve markets as demand improves.
The commercial challenge will be to ensure that the additional capacity translates into higher utilisation, competitive delivered costs and profitable sales rather than simply increasing available supply.
One cement platform moves towards NCLT approval
Ambuja shareholders approved the proposed amalgamations of ACC Limited and Orient Cement Limited with Ambuja Cements at the respective NCLT-convened meetings held on September 29 and 28, 2026.
The proposals are intended to simplify the corporate structure, unlock operating synergies and support long-term stakeholder value. The schemes remain subject to the requisite regulatory, statutory and National Company Law Tribunal approvals, with completion expected in FY27.
Bahety said:
“With the strong support received from shareholders, the proposed merger of ACC & Orient with Ambuja Cements will now proceed to the NCLT for final approvals. The proposed merger is expected to be EPS accretive.”
The proposed consolidation is a key part of the group’s strategy to create a more integrated cement platform, with potential benefits from operational coordination, logistics, procurement and manufacturing efficiencies.
Debt-free balance sheet, ESG and digital push
Ambuja reported a net worth of ₹72,238 crore and cash and cash equivalents of ₹1,070 crore. It also retained the highest AAA/A1+ credit ratings from CRISIL, CARE, India Ratings and ICRA, according to the company.
On sustainability, Ambuja partnered with Leilac Limited to explore a commercial-scale low-carbon cement pathway at its 6.6-MTPA Sanghipuram plant, integrating carbon-capture and hybrid-electrification technologies. The pre-feasibility study is targeted for completion by December 2026 to assess technical and commercial viability.
The first commercial application of Coolbrook’s RotoDynamic Heater technology is expected to become operational by mid-2027.
The company said its 2025 S&P Global Corporate Sustainability Assessment net score was revised upwards from 69 to 80, while its gross score remained at 90 out of 100.
Ambuja Cements and ACC also secured GreenPro certification for their blended cement portfolios. Products including Buildcem and Buildcem Pro received GRIHA certification, supported by Life Cycle Assessment and Environmental Product Declaration recognition.
Adani Cement planted 7.52 million trees through H1 FY27, moving towards its target of 8.3 million trees and contributing to the Adani Group’s commitment to plant 100 million trees by 2030.
Digital initiatives include IoT sensors across plants and manufacturing and logistics solutions such as PLMS, Agnigati, Reverse Bidding and Auto SO-to-TRP. The company said these systems had improved operational visibility, supported faster decision-making and strengthened plant and logistics efficiency.
Its Adani Ambuja Kawach and Adani ACC Gold Water Shield cement campaigns were also scaled across more than 2,000 cinema screens, alongside digital and outdoor media, reaching over 30 million consumers digitally.
Industry outlook: Demand fundamentals remain intact
Ambuja expects near-term conditions to remain challenging amid geopolitical conflicts, global uncertainty and higher energy costs, following monsoon-related headwinds during the quarter.
At the same time, the company sees structural demand support from infrastructure spending, urbanisation, rural housing and industrial activity.
Its second-half priorities include accelerating trade volumes, calibrating institutional sales, ramping up new capacity, increasing the contribution of renewable power and pursuing further cost efficiencies.
The central test for Ambuja in H2 FY27 will be whether premiumisation, capacity expansion and the One Cement Platform can restore operating margins while sustaining disciplined growth. The company enters this phase with a debt-free balance sheet and a clear cost-reduction target, but the recovery in profitability will depend on input prices, cement realisations, capacity utilisation and the pace of demand improvement.
Consolidated financial performance
| Particulars | Q2 FY27 | Q1 FY27 | Q2 FY26 | H1 FY27 | H1 FY26 |
| Cement sales volume (million tonnes) | 16.5 | 17.1 | 16.6 | 33.6 | 35.0 |
| Revenue from operations (₹ crore) | 9,197 | 9,500 | 9,175 | 18,697 | 19,464 |
| Operating EBITDA (₹ crore) | 1,271 | 1,589 | 1,762 | 2,860 | 3,722 |
| EBITDA margin | 13.8% | 16.7% | 19.2% | 15.3% | 19.1% |
| EBITDA per tonne (₹) | 770 | 931 | 1,061 | 852 | 1,064 |
| Profit after tax (₹ crore) | 236 | 660 | 2,336* | 896 | 3,377* |
| Diluted EPS (₹) | 0.78 | 2.32 | 7.18 | 3.08 | 10.72 |
The supplied results note that the previous-year PAT figures include a ₹1,697-crore income-tax provision reversal. PAT is stated as normalised to the reported bridge in the investor presentation; refer to the company’s official results and investor presentation for the precise reconciliation.
Select operational metrics
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
| Kiln fuel cost (₹/1,000 kcal) | 1.87 | 1.66 | 1.60 |
| Net power cost (₹/kWh) | 4.80 | 4.30 | 6.00 |
| Green power share | 61% | 48% | 41% |
| Primary lead distance | 254 km | 249 km | 265 km |
| Direct dispatch | 57% | 58% | 59% |
| Premium products (% of trade sales) | 37% | 34% | 35% |