Ambuja Cements delivered a resilient performance for FY ’26, achieving a record annual sales volume of 73.7 million tonnes, up 16% year-on-year. Despite industry-wide inflationary pressures and weather-related disruptions, the company reported a normalized EBITDA of INR 6,539 crore and PAT of INR 2,647 crore. Management emphasized a strategic shift toward operational efficiency, disciplined capital allocation, and strengthening premium segment penetration to drive future growth and margin expansion.
Financial Highlights of FY ’26
During the fiscal year ended March 31, 2026, Ambuja Cements demonstrated significant growth, with sales volumes reaching an all-time high of 73.7 million tonnes. The company’s focus on premiumization remained a core driver, with premium products accounting for 35% of trade sales during the year. Furthermore, the company maintained a debt-free status with a strong credit rating, despite the challenging environment marked by industry consolidation and GST 2.0 reforms.
Strategic Integration and Capacity Expansion
The company successfully completed the amalgamation of Sanghi Industries and Penna Cement, while integration of ACC and Orient Cement remains underway. These moves are part of the One Cement strategic initiative designed to improve operational synergies and compliance. The company’s total cement capacity rose to 109 million tonnes, bolstered by the commissioning of new grinding units at Marwar, Farakka, Sankrail, Sindri, and Krishnapatnam.
Operational Challenges and Cost Management
Management acknowledged that rising logistics and branding costs, alongside a peak cost of INR 4,500 per tonne recorded in the March quarter, impacted short-term margins. These were attributed to external geopolitical factors, fuel price volatility, and maintenance requirements for acquired assets. To mitigate this, the leadership team is implementing a strategy to reduce costs by INR 250 per tonne in the coming year through improved fly ash usage, green energy adoption, and enhanced operational discipline.
Outlook for FY ’27 and Beyond
Looking ahead, the company has provided a volume growth guidance of approximately 8% for FY ’27, targeting total volumes near 80 million tonnes. While acknowledging a softer industry demand environment, leadership remains focused on internal execution and de-bottlenecking exercises. Capital expenditure is being recalibrated toward high-potential markets, with a new focus on establishing efficient clinker and grinding units in regions like Bihar, Assam, and Mundra to optimize logistics and reduce long-term operational costs.
Source: BSE
