Ambuja Cements has announced an increase in its FY’28 target capacity to 155 MTPA, up from the previous 140 MTPA. This will be achieved through debottlenecking, with a lower capex of $48/MT. The company reported strong Q2 FY’26 results, with revenue at Rs 9,174 Cr. and 35 MTPA volume for H1FY26, up 20% YoY. Cost leadership and strategic initiatives are expected to drive future growth.
Capacity Expansion Plans
Ambuja Cements is increasing its FY’28 target capacity to 155 MTPA from the previously planned 140 MTPA. The additional 15 MTPA capacity will be achieved through debottlenecking, requiring a lower capital expenditure (capex) of $48/MT.
Financial Performance Highlights
The company reported strong financial results for Q2 FY’26:
- Revenue: Rs 9,174 Cr, up 21% YoY
- EBITDA: Rs 1,060 per MT, up 32% YoY
- PAT: Rs 2,302 Cr, up 364% YoY
For H1 FY’26, the company reported:
- Cement Volume: 35.0 MnT, up 20% YoY
- EBITDA: Rs 1,064 per MT, up 30% YoY
- PAT: Rs 3,319 Cr, up 159% YoY
Strategic Initiatives
Key strategic initiatives include:
- Installing 13 blenders at various plants to optimize product mix.
- Debottlenecking plant logistics infrastructure to increase existing capacity utilization.
- Commissioning 200 MW of solar power, increasing RE capacity to 673 MW, with plans to reach 900 MW by the end of the year.
- Launching CINOC (Cement Intelligent Network Operations Centre) to enhance operational efficiency.
Sustainability Efforts
The company has planted 7.1 million trees in H1 FY’26 and targets 8.3 million trees by 2030. They aim to be 12x water positive and maintain Zero Liquid Discharge (ZLD) across all manufacturing sites.
Mergers & Acquisitions
Mergers with Sanghi Industries and Penna Cement are in progress, awaiting NCLT approvals and expected to be completed by the end of FY’26.
Cost Reduction and Outlook
The company remains optimistic about delivering double-digit revenue growth and four-digit PMT EBITDA, with a target to reach a total cost of Rs 4,000 PMT by March 2026.
Revised Capacity Roadmap
Revised capacity target is now 155 MTPA, with:
- 5.6 MTPA expected by FY’27
- 9.4 MTPA in FY’28
Debottlenecking projects will add incremental capacity.
Source: BSE