Adani Group’s cement and building materials arm, Ambuja Cements, reported a 78.5% year-on-year rise in net profit attributable to owners for the fourth quarter of FY26, driven by healthy revenue growth. Profit attributable to owners stood at Rs 1,830 crore (Q4FY25: Rs 1,025 crore), beating Bloomberg estimates of Rs 723 crore.
Normalised PAT for the quarter came in at Rs 569 crore, marking a 33.53% annual decline, on the back of reversal of tax provisions and deferred tax credits arising from the merger of Sanghi Industries Limited and Penna Cement Industries Limited in 2024.
Revenue from operations during the March quarter rose 10.1% year-on-year to Rs 10,892 crore, trailing Bloomberg’s estimate of Rs 11,329 crore. Earnings before interest, taxation, depreciation and amortisation (Ebitda) dipped 19.2% year-on-year to Rs 1,440 crore, also trailing street estimates of Rs 1,884 crore. The Ebitda margin stood at 13.2%, while Ebitda per tonne declined 29% year-on-year to Rs 735.
Operational Headwinds
“We remain focused on stabilising new capacities, strengthening operating efficiency and improving asset utilisation, supported by a debt‑free balance sheet, strong liquidity and the highest credit ratings,” Vinod Bahety, whole time director and chief executive at Ambuja Cements said.
Ambuja Cements in its earnings release said that Indian cement sector is facing cost pressures from higher fuel and diesel prices, rising packaging costs due to supply constraints, and rupee depreciation, with the impact likely to be sharper in the first half of the year. The company is responding through fuel mix optimisation, renewable energy use, logistics efficiencies, and sourcing strategies.
The company reported quarterly sales volumes of 19.9 million tonne, up 10% from the corresponding quarter last year. Ambuja Cements’ installed capacity at the end of Q4 stood at 109 million tonne per annum (MTPA), supported by commissioning of clinkering line with 3 MTPA capacity at Jodhpur. The company also started trial run for a 1.2 MTPA Dahej GU Line 2, it said.
Recalibrating Expansion
The company also outlined projects to be commissioned in H1FY27 which include grinding capacities in Dahej (1.2 MTPA), Bhatinda (1.2 MTPA), Salai Banwa (2.4 MTPA), Kalamboli (1 MTPA), Jodhpur (2 MTPA), Warisaliganj (2.4 MTPA) and additional clinker unit at Maratha (4 MTPA) taking the total capacity to 119 MTPA by October 2027.
“Capacity expansion plans are being recalibrated in line with the recent railway policies on bulk cement terminals, with additions pursued more gradually after achieving optimal utilization levels. This approach reflects disciplined capital allocation and a steadfast commitment to maximizing return on capital employed,” the company said.
While cement demand remained strong through FY26, demand growth for FY27 is expected to remain soft at around 5%, factoring in early forecasts of a below normal monsoon, which could adversely impact agricultural output and housing demand, as well as ongoing West Asia conflicts leading to fuel price volatility, the company added.
Capex for FY26 was around Rs 7,500 crore, Ambuja management said on its earnings call. Capex Outlook for FY27 is between Rs 6000 crore to Rs 6500 crore, depending on how macroeconomic conditions pan out, they added.