Adani Group’s cement and building materials arm, Ambuja Cements, reported a 33.6% year-on-year (y-o-y) dip in net profit attributable to owners for the first quarter of FY27, due to declining revenues. Profit attributable to owners stood at Rs 577 crore (Q1FY26: Rs 869 crore), though it beat Bloomberg estimates of Rs 372 crore.
Revenue from operations during the June quarter fell 7.5% y-o-y to Rs 9,474 crore, trailing Bloomberg’s estimate of Rs 10,244 crore on the back of lower sales volumes. Earnings before interest, taxation, depreciation and amortisation (Ebitda) dipped 18.4% y-o-y to Rs 1,563 crore, slightly above Bloomberg estimates of Rs 1,525 crore.
The Ebitda margin stood at 16.5% down 210 basis points (bps) annually, but up 330 bps over the previous quarter. Ebitda per tonne declined 13% y-o-y to Rs 931 (Q1FY26: Rs 1,069), and was up 26.67% over the March quarter.
“Despite temporary cost headwinds arising from the West Asia geopolitical tensions, we delivered a sequential cost reduction of Rs 206 PMT (per metric tonne) through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management,” Vinod Bahety, whole time director and chief executive at Ambuja Cements said.
Ambuja Cements in its earnings release said that Indian cement sector faced cost pressures in Q1 from higher imported fuel prices, along with elevated freight and logistics costs resulting from geopolitical developments in West Asia.
“Given the 60–90 day fuel inventory cycle, the impact of peak fuel cost inflation is expected to coincide with the seasonally weaker Q2, potentially impacting industry profitability in the near term,” the company added.
Ambuja Cements reported quarterly sales volumes of 17.1 million tonne, down 7.1% from the corresponding quarter last year. The company’s installed capacity at the end of Q1 stood at 109 million tonne per annum (MTPA), same as in Q4FY26.
The firm also revised its expansion timeline to end of FY27 from the previous stated H1FY27.
“We are well on track to increase our capacity to 119 MTPA by the end of FY27, with the commissioning of Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA) Jodhpur (2 MTPA), Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA). 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 FY27,” Bahety added.
The company said it expects demand growth to remain soft at around 5% in FY27, due to impact of near-term softness of seasonal monsoon softness, geopolitical uncertainties, and input cost volatility. “The sector’s long-term outlook remains constructive, supported by sustained infrastructure investments, urbanisation, and housing demand,” the company said.