Ambuja Cements Q1 EBITDA rises 8.5% QoQ to Rs 1,589 crore; profit, revenue decline
New Delhi, July 28
Ambuja Cement's operating EBITDA rose 8.5 per cent sequentially to Rs 1,589 crore in Q1FY27, supported by value-led growth, premiumisation and cost optimisation, even as cement volumes and profit declined amid a seasonally challenging quarter and geopolitical headwinds.
The company's operating EBITDA margin expanded by 331 basis points QoQ to 16.7 per cent, while EBITDA per tonne surged 27 per cent to Rs 931 from Rs 735 in Q4 FY26. Ambuja said it achieved a sequential cost reduction of Rs 206 per tonne, helped by operational efficiencies, improved energy efficiency, a lower clinker factor and disciplined cost management.
Consolidated cement sales volume stood at 17.1 million tonnes (MnT) during Q1 FY27, compared with 19.9 MnT in the preceding quarter and 18.4 MnT in Q1 FY26. Revenue from operations declined to Rs 9,500 crore, from Rs 10,916 crore in Q4 FY26 and Rs 10,289 crore a year earlier.
Profit after tax (PAT) stood at Rs 660 crore, down from Rs 1,857 crore in Q4 FY26 and Rs 1,041 crore in Q1 FY26. Diluted earnings per share stood at Rs 2.32 against Rs 7.37 in the previous quarter and Rs 3.53 in the year-ago period.
The company said its focus on higher-value segments strengthened the market mix. Trade sales share increased by 4 percentage points YoY to 78 per cent, while premium products accounted for 34 per cent of trade sales, up one percentage point YoY.
Ambuja also continued to strengthen its green energy footprint, increasing renewable energy capacity by 75 MW to 973 MW. Green power share rose to 34 per cent, compared with 32 per cent in Q4 FY26 and 28 per cent in Q1 FY26.
The company's cement capacity stood at 109 MTPA as of June 30, 2026, and is targeted to reach 119 MTPA by the end of FY27, with several new facilities undergoing trial production.
Ambuja said the cement industry faced higher imported fuel and logistics costs during the quarter due to West Asia geopolitical tensions. The company expects cement demand growth at around 5 per cent in FY27, while maintaining a constructive long-term outlook supported by infrastructure, urbanisation and housing demand.
— ANI
Reader Comments
As someone watching the Indian infrastructure boom from abroad, these numbers are still impressive. The cost reduction of Rs 206 per tonne shows real operational discipline. Even with geopolitical headwinds, Ambuja is holding its own. Green energy push is also a smart long-term bet.
I run a small construction business in rural Karnataka. We always prefer Ambuja cement because of its consistent quality, but with prices going up, margins are getting squeezed for contractors like us. The company talks about premium products, but what about affordable options for smaller builders? 🤷♂️
The 331 bps margin expansion is commendable, but the 14% drop in revenue QoQ is worrying. The management should clarify if this slowdown is seasonal or structural. With 5% demand growth expected, they need to balance premiumisation with volume growth. Also, happy to see renewable energy share crossing 34%! 🌱
Cement sector is cyclical, so quarterly ups and downs are normal. The real story here is the cost reduction and green energy investments. Ambuja is playing the long game. But the profit drop from Rs 1,857 crore to Rs 660 crore is too sharp—they need to address the top-line issue seriously.
Interesting read! I'm an investor in Indian markets and hold some Ambuja shares. The EBITDA per tonne going up to Rs 931 is a good sign, but the drop in EPS from Rs 7.37 to Rs 2.32 is a red flag. Will hold for now and watch the next quarter closely before making any decision.
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