Ambuja Cements Limited has reported a resilient performance for the second quarter of FY27, with trade volumes growing 8.6% year-on-year. The company achieved an EBITDA margin of 14% and EBITDA of INR1,271 crore. Strategic expansion plans are underway, aiming to add approximately 30 million tons of cement capacity. The company also highlighted progress on its merger with ACC and Orient Cement, expected to be earnings per share accretive.
Ambuja Cements Reports Strong Q2 FY27 Performance
Ambuja Cements Limited has announced its unaudited financial results for the second quarter ended September 30, 2026 (Q2 FY27), showcasing a resilient performance driven by increased trade volumes and strategic initiatives. The company reported a year-on-year growth of 8.6% in trade volumes, alongside a 6% increase in trade share, reaching 74%. The share of premium products in overall trade sales rose to 37%, up from 35% last year, and blended cement share improved to 82% from 77%.
Financial Highlights
Consolidated revenue from operations stood at INR9,197 crore. The company achieved an EBITDA of INR1,271 crore, with an EBITDA margin of approximately 14%. EBITDA per metric ton was reported at INR770, and Profit After Tax (PAT) was INR236 crore. The net worth of the company is INR72,238 crore, with cash and cash equivalents amounting to INR1,070 crore. Ambuja Cements continues to maintain a debt-free status with the highest ratings.
Strategic Expansion and Growth Outlook
The company is advancing its growth journey with 14 expansion projects planned to add approximately 30 million tons of cement and 10.3 million tons of clinker capacity. These expansions are strategically located across West, East, and North clusters, including new grinding capacities and clinker facilities. The company anticipates that volumes will grow ahead of the industry in the second half of FY27, supported by accelerated trade volumes and calibrated institutional sales. A significant focus remains on improving revenue quality through a stronger trade and premium product mix, alongside cost optimization and disciplined capital allocation.
Merger Progress
Following strong shareholder support, the proposed merger of ACC and Orient Cement with Ambuja Cement is proceeding to the National Company Law Tribunal (NCLT) for final approvals. The completion of these mergers within the current financial year is expected to simplify the corporate structure, unlock operating synergies, and be earnings per share accretive, thereby supporting long-term stakeholder value.
Operational Performance
Key operational metrics include a cement sales volume of 16.5 million metric tons for the quarter. The ready-mix concrete business achieved a quarterly volume of 1.07 million cubic meters, up 19% year-on-year. Green power share stood at 61%. Logistics costs were moderated by a reduction in the primary lead and increased utilization of BCFC infrastructure. Fuel mix improved with a higher share of domestic coal, contributing to a fuel cost of INR1.87 per 1,000 kilo calorie in Q2 FY27.
Cost Management and Future Targets
The total cost stood at INR4,410 per metric ton. Excluding the impact of geopolitical conflict, the normalized cost is around INR4,182 per ton. The company is on track to achieve its FY27 cost target of INR4,250 per metric ton. Investments in operational efficiencies, including WHRS, AFR, and BCFC, are expected to further reduce costs. The company is also implementing initiatives like electric vehicles and leveraging technology for logistics optimization.
Source: BSE
