Ambuja Cements reported a strong Q2 FY26 performance, with PAT at Rs. 2,302 Cr, up 364% YoY. The company achieved its highest ever quarterly volume at 16.6 MnT, a 20% YoY increase. Additionally, Ambuja Cements upped its FY28 target capacity to 155 MTPA through strategic debottlenecking and efficiency improvements. Focus on market share and R&D-led premium offerings drove the positive results.
Exceptional Financial Performance
Ambuja Cements announced outstanding financial results for Q2 FY26. Key highlights include:
- Quarterly revenue reached Rs 9,174 Cr, the highest ever in Q2 series, reflecting a 21% YoY increase.
- Q2 PMT EBITDA stood at Rs.1,060 PMT, a 32% YoY increase, translating to Rs 1,761 Cr, up 58% YoY, with a margin of 19.2%, up 4.5 pp YoY.
- Earnings Per Share (EPS) for the quarter was Rs 7.2, up by an impressive 267% YoY.
Operational Highlights & Capacity Expansion
Several key operational achievements contributed to the strong financial performance:
- The company upped its FY28 target capacity to 155 MTPA from the earlier 140 MTPA, achieved through debottlenecking at a lower capex of USD 48/MT.
- Installation of 13 blenders across plants over 12 months to optimize product mix and increase the share of premium cement.
- Trial run started for a new 4 MTPA kiln line at Bhatapara (Chhattisgarh).
- Commissioned 200 MW of solar power, bringing the total RE capacity to 673 MW, with plans to reach 900 MW by the end of the year and 1,122 MW by FY27.
Strategic Initiatives
Ambuja Cements has been actively pursuing strategic initiatives to enhance operational efficiency and market competitiveness:
- Launched CiNOC (Cement Intelligent Network Operations Centre) to integrate Al into operations and business processes.
- Formed strategic engagements and partnerships with CONCOR, CREDAI, and over 400 academic institutions through the Adani Cement FutureX program.
Leadership Commentary
Mr. Vinod Bahety, Whole Time Director & CEO of Ambuja Cements, commented, “This quarter has been noteworthy for the cement industry… The sector will benefit from the tailwinds of several favourable developments including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess.”
Sustainability Focus
The company remains committed to sustainability initiatives, including:
- Planted 7.1 million trees until H1 FY26 as a part of its commitment to plant 8.3 million trees.
- Maintained water positive operations at 12x (annualized).
- Maintained Zero Liquid Discharge (ZLD) across all manufacturing sites.
Source: BSE