Ambuja Cements Limited has released the transcript of its Q1 FY27 earnings conference call held on July 28, 2026. The transcript details the company’s financial performance, including revenue of INR9,500 crores and operating EBITDA of INR1,589 crores. Key discussions include strategic priorities, cost management initiatives, capacity expansion, and outlook for the fiscal year.
Ambuja Cements Releases Q1 FY27 Earnings Call Transcript
Ambuja Cements Limited has published the transcript of its Q1 FY27 earnings conference call, which took place on July 28, 2026. The call provided an in-depth review of the company’s financial and operational performance for the quarter ended June 30, 2026.
Financial Highlights for Q1 FY27
The company reported a revenue of INR9,500 crores for the first quarter. Operating EBITDA stood at INR1,589 crores, with an EBITDA margin of 16.7%. The net cost per ton was INR931, showing a sequential reduction of INR206. Profit After Tax (PAT) for the quarter was INR660 crores.
Strategic Priorities and Growth Outlook
Ambuja Cements outlined its four strategic priorities for the next phase of growth: profitable growth, structural cost leadership, disciplined capital allocation, and building a future-ready enterprise. The company is focused on enhancing revenue quality through a higher share of trade sales and premiumization. Capacity expansion remains on schedule, with a target to reach 119 million tons by the end of the financial year. The company reiterated its commitment to sustainability and innovation as key differentiators.
Cost Management and Efficiency
Significant emphasis was placed on cost leadership, with operational excellence driving competitive advantage. The clinker factor improved to 64%, and the share of blended cement increased to 85%. Net operating cost reduced to INR4,241 per metric ton, a decrease of INR206 PMT from the previous quarter, aligning with the full-year guidance of INR4,250 per ton. Initiatives in renewable energy power capacity and waste heat recovery are contributing to cost reduction, with RE power capacity reaching 973 megawatts and WHRS capacity at 228 megawatts. These efforts are expected to lead to substantial savings, estimated between INR130 to INR150 per ton.
Capacity Expansion and Volume Growth
The company’s integrated cement platform now stands at 109 million tons, with plans to increase installed capacity to 119 million tons by the end of the financial year. Expansion projects at Dahej, Salai Banwa, Bhatinda, Jodhpur, and Kalamboli are progressing. The company anticipates an 8% volume growth for the full fiscal year, driven by a renewed focus on trade volumes and leveraging the brand equity of Ambuja and ACC.
Market and Regional Performance
The transcript highlighted strong performance in the North, West, and East clusters, with positive growth in trade and non-trade segments in the West. The company has consciously reduced lower-margin volumes in the South to focus on improving profitability. A total of 10.2 million tons of new capacity is being added, contributing to improved efficiency and overall costs.
Sustainability and Green Power
Sustainability is positioned as a driver of innovation and value creation. The company is increasing its green power consumption, with RE power capacity at 973 megawatts and WHRS at 228 megawatts, leading to a reduction in unit power costs. The target is to achieve 60% green power share by FY28.
Future Investments and Capex
Capex for FY27 and FY28 is planned to be around INR6,500 crores, covering both growth and efficiency investments. The company is also investing in improving its channel network and product development.
Other Operational Updates
Discussions also covered the strategic importance of the Adani Cement brand, the RMC segment’s EBITDA, and the progress of various expansion projects. The company is optimizing its fixed costs and leveraging technology for efficient operations.
Source: BSE
