Orient Cement has announced its Q3 FY26 financial results, highlighting a period of industry-leading volume growth. A key development was the proposed amalgamation of ACC and Orient Cement with Ambuja Cements, aiming to create a unified cement platform. The company reported improved capacity utilization, premiumization, and cost reductions, while also noting increased renewable energy usage and strategic initiatives in digital intelligence and customer engagement.
Key Financial Highlights
Orient Cement reported strong Q3 FY26 performance, marked by industry-leading volume growth, outpacing the industry average by 2x. This growth was supported by stronger market execution and improved availability across trade and non-trade channels, leading to higher base capacity utilization.
Realizations improved by INR5 per bag compared to the previous year, driven by a focus on value and market share. The company’s actions on premiumization and mix improvements significantly increased market share and better realizations.
Strategic Developments
The defining event this quarter was the proposed amalgamation of ACC and Orient Cement with Ambuja Cements. This amalgamation aims to create a unified One Cement Platform, expected to accelerate growth, support EBITDA expansion, strengthen operational excellence, improve logistics density, and enhance capital efficiency.
Operational Performance
Capacity utilization for acquired assets improved significantly to 58% during the quarter, a 21% increase compared to the previous year (37%). By the end of December, utilization further improved to 65%.
Trade pricing continues to outperform non-trade, with gaps widening up to INR31 per bag.
The company commissioned a 2.4 million tons Marwar Grinding Unit ahead of schedule, increasing total capacity to 109 million tons per annum. The commissioning of Warisaliganj is now scheduled for Q1 FY27, leading to a revised capacity exit target of 115 million tons by March 2027.
Additionally, Orient Cement is unlocking an additional 15 million tons of debottlenecking capacity at lower capex cost, aiming to reach 155 million tons by March 2028.
Sustainability and Cost Efficiency
Kiln fuel cost decreased by 6%, power cost reduced by 15%, and green power share increased to 37%. Logistics costs also reduced by 1%. Renewable energy footprint now stands at almost 900 megawatts.
Other Strategic Initiatives
Orient Cement launched CiNOC (Cement Intelligent Network Operations Center), an AI-enabled central control system. It expanded engagement across priority industry platforms such as CREDAI, BAI, and NAREDCO.
Source: BSE
