Ambuja Cements’ Profit Up by 23% in June Quarter

Mumbai, 31 July 2025: Ambuja Cements Ltd (NSE: AMBUJACEM, BSE: 500425) standalone net profit increased 50.7% year-on-year to ₹855 crore in Q1FY26, compared to ₹567 crore in the same period last year. Revenue from operations rose 21.1% YoY to ₹5,515 crore, driven by higher cement volumes and improved realisations.  Its consolidated profit increased by 23% to Rs 788 crore.

Ambuja Cements’ stock closed the day today, down by 4.51% at Rs 590.

Standalone Net Profit Grows 51% YoY in Q1FY26 to ₹855 Cr on Volume Growth and Realisations

Ambuja Cements posted a robust standalone performance in Q1FY26, with revenue from operations rising to ₹5,515 crore from ₹4,552 crore a year ago, marking a growth of 21.1%. Cement sales volume increased by 16.7% YoY to 10.5 million tonnes.

Operating EBITDA climbed 35% to ₹872 crore, compared to ₹646 crore in Q1FY25, with the EBITDA margin expanding to 15.8% from 14.2%. EBITDA per metric tonne stood at ₹827, reflecting a 15.8% YoY increase. Profit before tax rose sharply by 39.7% to ₹1,066 crore, while profit after tax surged 50.7% to ₹855 crore.

Diluted earnings per share (EPS) stood at ₹3.47, up from ₹2.33 in the previous year, representing a 48.9% growth.

Consolidated Revenue Crosses ₹10,000 Cr Mark for the First Time; Net Profit Up 24% YoY

On a consolidated basis, Ambuja Cements reported a record revenue of ₹10,289 crore, up 22.6% from ₹8,390 crore in Q1FY25. Consolidated net profit grew to ₹970 crore, registering a 23.9% increase from ₹783 crore a year earlier.

Cement sales volume across the group reached an all-time high of 18.4 million tonnes, a 20% YoY growth. The consolidated EBITDA per metric tonne improved to ₹1,069, reflecting a 28% rise, while the EBITDA margin expanded by 380 basis points to 19.1%.

Market Share at 15.5%; Premium Product Sales Grow 43% YoY to 33% Share in Trade Segment

Ambuja continued to strengthen its market presence, expanding its market share by nearly 200 basis points to 15.5%. Its focus on value-added offerings led to premium products accounting for 33% of total trade sales, up 43% year-on-year. This contributed significantly to margin improvement and enhanced realisations across its distribution network.

57 MW Wind Power Addition in Q1 Boosts Green Capacity to 473 MW; Energy Efficiency Measures Lower Costs

Operationally, the company commissioned 57 MW of wind power during the quarter, taking its total renewable energy capacity to 473 MW. Green power usage improved significantly by 9.7 percentage points to 28.1% in Q1FY26. Manpower costs remained among the lowest in the industry at ₹223 per tonne. Additionally, the company reported a decline in coal cost to ₹1.59 per ’000 Kcal and achieved better heat consumption efficiency, which supported improved margins.

Amalgamation of Adani Cementation Ltd Approved; Unlocks 275 MnT Limestone Reserves and Strategic Assets

The National Company Law Tribunal (NCLT), Ahmedabad, approved the amalgamation of Adani Cementation Ltd with Ambuja Cements on 18 July 2025. This merger gives Ambuja access to 275 million tonnes of limestone reserves in Mudhvay, Gujarat, along with jetty infrastructure and an additional 1.3 million tonnes of grinding capacity, enhancing its long-term competitiveness and resource base.

Financial Strength Maintained with Zero Debt and 30-Day Working Capital Cycle

Ambuja Cements maintained a strong balance sheet with a net worth of ₹66,436 crore and zero debt. The company retained a healthy 30-day working capital cycle and a credit rating of CRISIL AAA / A1+, highlighting its robust financial discipline and liquidity management.

Strategic Initiatives and Brand Positioning Strengthened Through Digital and On-Ground Campaigns

The company launched NirmAAAnotsav in partnership with CREDAI and adopted DIGIPIN for enhanced freight and address standardisation. It also conducted 317 skill development workshops, benefiting over 9,000 contractors. Branding efforts included IPL 2025 sponsorships, cinema promotions, and collaborations with music platforms like Spotify and Gaana, aimed at deeper consumer engagement.

ESG Leadership Strengthened with Net-Zero Commitment and Green Cement Initiatives

Ambuja’s ESG strategy received further validation, with science-based net-zero targets approved by the Science-Based Targets Initiative (SBTi), making it one of only four global cement majors with such credentials. The company also published its Digital BRSR 2024–25, completed Environmental Product Declaration (EPD) certification for PPC cement, and reaffirmed its target to increase green power usage to 60% by FY28.

Positive Outlook for FY26 with Demand Expected to Grow 7–8%; Infrastructure Push to Drive Cement Consumption

Cement demand grew 4% YoY in Q1FY26 and is projected to grow 7–8% for the full fiscal year, backed by government-led infrastructure projects such as PMAY, Bharatmala, and Sagarmala. Ambuja is expected to benefit from this momentum, supported by its expanding capacity, competitive cost structure, and sustainability-focused business model.

Recognitions Reflect Strong Brand Trust and Environmental Stewardship

Ambuja Cements was recognised as India’s Most Trusted Cement Brand (TRA) for the fourth consecutive year. It also won a Bronze at the Good Ads Matter Awards 2025 for its #GiantsTogether campaign and received the GEEF Environmental Excellence Company of the Year 2025 award.

Ambuja Cements Share Price Falls 3.39% Despite Strong Q1 Earnings; Stock Reacts to Broader Market and Profit Booking

Despite the stellar Q1FY26 performance, Ambuja Cements’ shares declined by 3.39% to ₹596.90 as of 2:56 pm IST on 31 July 2025. The stock opened at ₹613.00 and touched an intraday high of ₹624.80 before dipping to ₹596.05. Analysts attribute the fall to profit booking, broader market sentiment, and possibly muted forward guidance, as investors digested the results ahead of the company’s earnings call scheduled at 4:00 pm IST.

₹1.47 Lakh Cr Market Cap, 18.9% Margin, and 7.8% ROE Highlight Ambuja’s Financial Strength in Q1FY26

Ambuja Cements reported a market capitalisation of ₹1.47 lakh crore, with a P/E ratio of 35.3 and a price-to-book value of 2.9—both above the industry median. Institutional holding rose slightly to 26.13%. While net profit growth YoY declined by 9.4% for the quarter, TTM net profit rose by 16.7%. Return on equity stood at 7.8%, and return on assets at 5.1%. Operating margins remained strong at 18.9% for the quarter and 17% TTM. The company also outperformed the Nifty50 and sector benchmarks with quarterly relative returns of 9.6% and 4.2%, respectively.

Ambuja Cements: A Global Cement Leader with 104.5 MTPA Capacity and Aggressive Growth Targets

Ambuja Cements Ltd, part of the Adani Group, is currently the ninth-largest cement manufacturer globally, with a production capacity of 104.5 million tonnes per annum (MTPA). Its operations span 24 integrated plants and 22 grinding units. The company is on track to expand this capacity to 118 MTPA by FY26 and further to 140 MTPA by FY28. This aggressive scale-up aligns with its core focus on decarbonisation, digital transformation, and inclusive growth. Ambuja is also strategically positioned to benefit from India’s ongoing infrastructure expansion, with cement demand projected to rise steadily in the coming years.

REF:https://nsearchives.nseindia.com/corporate/AMBUJACEM_31072025134038_ACL_Outcome_Final_1.pdf

https://nsearchives.nseindia.com/corporate/AMBUJACEM_31072025135208_ACL_MediaRelease.pdf

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