Ambuja Cements starts FY27 on strong operational note, eyes 119 MTPA capacity
New Delhi, July 28
Adani Group-backed Ambuja Cements Ltd on Tuesday reported a strong operational performance for the first quarter of FY27, driven by higher trade sales, premiumisation and cost optimisation, while reaffirming its plan to expand cement manufacturing capacity to 119 million tonnes per annum by the end of the fiscal.
The company said its EBITDA margin expanded by 331 basis points sequentially to 16.7 per cent despite temporary cost pressures arising from geopolitical tensions in West Asia.
Ambuja Cements achieved a sequential cost reduction of Rs 206 per metric tonne (PMT) through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management.
The company posted a consolidated net profit of Rs 660 crore for the first quarter of FY27.
Revenue from operations stood at Rs 9,500 crore during the April-June quarter, while operating EBITDA came in at Rs 1,589 crore.
"We have started FY27 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," said Vinod Bahety, Whole Time Director and CEO of Ambuja Cements.
The company said it remains on track to increase its cement manufacturing capacity to 119 MTPA by the end of FY27 through the commissioning of new plants at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli and Warisaliganj.
Trial production has already commenced at Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA) and Jodhpur (2 MTPA), while trial runs at Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA) are expected to begin in the second quarter.
Ambuja Cements maintained a debt-free balance sheet during the quarter, with a net worth of Rs 71,954 crore and cash and cash equivalents of Rs 844 crore.
Looking ahead, the company said India's long-term cement demand outlook remains positive, supported by continued infrastructure spending, urbanisation and housing demand, although near-term demand may remain subdued due to the monsoon season, geopolitical uncertainties and input cost volatility.
— IANS
Reader Comments
Debt-free with a net worth of ₹71,954 crore—that's massive! Ambuja/Cement is showing how disciplined cost management and focus on premium products can drive profitability even during uncertain times. The trial production at multiple plants is a good sign. Hope the monsoon impact on near-term demand is manageable.
Nice numbers, but let's not ignore the broader picture—the cement industry is highly competitive and dependent on government infra spending. Ambuja's focus on premiumisation is smart, but with so many new capacities coming up across India, pricing pressure could increase. Let's see if they can maintain those EBITDA margins in the long run. Still, a solid start to FY27!
This is exactly the kind of growth that makes me optimistic about India's economy. Ambuja Cements—part of the Adani Group—is contributing to the 'Make in India' vision with new plants from Dahej to Bathinda and Jodhpur. More capacity means more jobs and better infrastructure! 🚀
Impressive that they're debt-free with ₹844 crore cash. But I'm a bit skeptical—cement demand can be cyclical, and with global uncertainty, the near-term outlook being 'subdued' is a valid concern. Also, 16.7% EBITDA margin is good but not extraordinary. The real test will be when monsoon ends and input costs stabilize. Still, kudos to the team!
Solid operational performance by Ambuja Cements
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