Ambuja Cements reported strong Q2 FY26 results, driven by 20% volume growth and improved cost efficiencies. EBITDA reached INR1,060 per metric ton, a 32% year-over-year increase. The company is targeting a capacity of 155 million tons by FY28 through debottlenecking and strategic expansions. Green Power share increased to 33%, with plans to reach 60% by FY28. Ambuja Cements maintains a bullish outlook on cement demand.
Financial Performance Highlights
Ambuja Cements reported a strong financial performance for Q2 FY26, demonstrating robust growth and improved profitability:
- Highest ever sales volume in Q2 at 16.6 million tons, up 20% year-over-year.
- Revenue increased by 21% year-over-year to INR9,174 crores.
- EBITDA reached INR1,761 crores, a 58% year-over-year increase.
- EBITDA margin stood at 19.2%, up from 14.7% in the previous year.
- Profit after tax was INR2,302 crores, up 364%.
Strategic Initiatives and Expansion
Ambuja Cements is undertaking several strategic initiatives to drive future growth and efficiency:
- Capacity expansion target revised to 155 million tons by FY28, with clinker capacity increasing to 96 million tons.
- Debottlenecking initiatives adding 15 million tons of capacity at a capex of $48 per ton.
- Logistics improvements expected to reduce lead distance by another 50 kilometers.
- Green Power share increased to 33% in Q2, targeting 60% by FY28.
Cost Reduction and Efficiency Measures
The company is focused on cost leadership and efficiency improvements:
- Total costs reduced by 5% year-over-year, led by kiln fuel cost at INR1.65 per 1,000-kilo calories.
- Targeting total cost of ~ INR4,000 per metric ton by the end of FY26.
- Logistics cost down by almost 7% year-over-year at INR1,224.
Operational Excellence and Sustainability
Ambuja Cements is committed to operational excellence and sustainability:
- Green Power share has increased to 33%. Renewable energy capacity is expected to reach almost 900-megawatt by the end of the financial year and 1,122 megawatts by FY ’27.
- Signed an MOU with Coolbrook of Finland.
Industry Outlook
Ambuja Cements remains bullish on cement demand, expecting industry growth of 7% to 8%. The company is well-positioned to capitalize on improved economic sentiment and higher investments in both public and private sectors.
Source: BSE
