- EBITDA per tonne jumps 27% sequentially to ₹931 as operational excellence offsets West Asia fuel cost pressures
- Company remains debt-free, expands renewable energy footprint and sharpens premium product strategy
- Capacity expansion to 119 MTPA by FY’27-end keeps growth engine on track despite softer cement demand
- Low-carbon cement partnership, digital transformation and ESG leadership reinforce long-term competitiveness
- CEO confident of achieving ₹250 per tonne cost reduction and strengthening market leadership
NE BUSINESS BUREAU
AHMEDABAD, JULY 28
Defying geopolitical headwinds and rising fuel costs, Ambuja Cements Ltd, part of the Adani Portfolio, delivered a resilient first-quarter performance for FY’27 by significantly improving profitability through operational excellence, premiumisation and disciplined cost management, while reinforcing its long-term growth strategy with aggressive capacity expansion and sustainability initiatives.
The company reported revenue of ₹9,500 crore, operating EBITDA of ₹1,589 crore and a 27% sequential surge in EBITDA per tonne to ₹931, with operating margins expanding 331 basis points quarter-on-quarter to 16.7%. Although quarterly cement sales volume moderated to 17.1 million tonnes, Ambuja improved its trade sales mix to 78% and increased the share of premium products to 34%, strengthening the quality of earnings.
“We have started FY’27 with strong momentum, driven by our focus on value-led growth, premiumisation and disciplined execution,” said Vinod Bahety, Whole Time Director & CEO, Ambuja Cements Ltd. “Higher trade sales and an increased share of premium products strengthened our market mix, resulting in improved profitability and quality of earnings.”
Despite cost pressures triggered by higher imported petcoke, thermal coal and freight costs arising from the West Asia conflict, the company achieved a ₹206 per tonne sequential cost reduction through improved energy efficiency, a lower clinker factor and operational optimisation.
“This resulted in a 331 bps QoQ expansion in EBITDA margin to 16.7%,” Bahety said, adding that Ambuja remains on course to reduce costs by nearly ₹250 per tonne, targeting an operating cost of ₹4,250 per tonne by the end of FY’27.
Maintaining one of the strongest balance sheets in the sector, Ambuja continued to remain debt-free, with a net worth of ₹71,954 crore, cash and cash equivalents of ₹844 crore, and the highest AAA/A1+ credit ratings from CRISIL and CARE.
The company also accelerated its expansion roadmap, with installed cement capacity reaching 109 MTPA and projected to rise to 119 MTPA by the end of FY’27 through new facilities at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli and Warisaliganj.
On the sustainability front, Ambuja increased its renewable energy capacity by 75 MW to 973 MW, taking the green power share to 34%. The company further strengthened its decarbonisation roadmap through a partnership with UK-based Leilac Limited to develop one of the world’s largest commercial-scale low-carbon cement production pathways aligned with its Net Zero 2050 targets.
“We continue to strengthen our leadership in sustainable construction through innovation and our partnership with LEILAC, accelerating our low-carbon transition and building capabilities that will support the next phase of growth,” Bahety said.
Ambuja and ACC also secured GreenPro and GRIHA certifications for their blended cement portfolio, while expanding digital capabilities through artificial intelligence, predictive maintenance, automation and advanced analytics to improve manufacturing efficiency and decision-making.
Looking ahead, the company expects near-term demand to remain subdued due to the monsoon, geopolitical uncertainties and input cost volatility. However, it remains optimistic about the sector’s long-term prospects, supported by sustained infrastructure spending, urbanisation and housing demand.
Backed by a robust expansion pipeline, premiumisation strategy and operational efficiencies, Ambuja believes it is well positioned to outperform industry growth while consolidating its position among India’s leading cement manufacturers.
