Ambuja Cements Q2 Results: What Investors Need to Know

Ambuja Cements’ Profit Surges 268% YoY Ambuja Cements delivered a stellar second-quarter performance for FY26, reporting a consolidated net profit of Rs. 1,766 crore, a massive 268% jump from Rs. 480 crore last year. The surge came despite a challenging monsoon season, as strong demand and operational efficiency boosted the company’s bottom line. Following the results, Ambuja shares rose 2.18% to Rs. 577.75 on the NSE.

Record Revenue and Sales Volumes The company’s revenue from operations climbed 25% year-on-year to Rs. 9,130 crore, supported by a 20% increase in cement sales volumes to 16.6 million tonnes, the highest-ever for any Q2. Premium cement continued to shine, accounting for 35% of total trade sales and growing 28% YoY, while overall market share edged up to 16.6%.

Profitability Boost – Margins at Multi-Year Highs Ambuja’s operating profit (EBITDA) nearly doubled, rising 98.5% YoY to Rs. 1,716 crore compared to Rs. 864 crore last year. The company’s EBITDA margin improved sharply to 18.79% from 11.82%, reflecting higher realizations, cost optimization, and greater sales of premium products. Earnings per share (EPS) rose to Rs. 7.2, up 267% YoY, while the company maintained a strong, debt-free balance sheet with a net worth of Rs. 69,493 crore.

Capacity Expansion on Fast Track Ambuja raised its FY28 production capacity target from 140 MTPA to 155 MTPA, a 15 MTPA boost through low-cost debottlenecking projects estimated at just $48 per tonne. It also launched trial runs for a new 4 MTPA kiln line in Bhatapara (Chhattisgarh) and began operations at its 2 MTPA Krishnapatnam grinding unit. Three additional plants adding 7 MTPA are expected to go live in Q3 FY26.

Cost Efficiency and Future Targets Ambuja aims to cut its total production cost to Rs. 4,000 per metric tonne by the end of FY26 and further reduce it by 5% annually to reach Rs. 3,650 PMT by FY28. The company is installing 13 new blenders across plants to enhance its product mix, expand premium offerings, and strengthen margins.

Sustainability and Renewable Energy Push Ambuja is making major strides in sustainability with the commissioning of 200 MW of new solar capacity, taking total renewable energy to 673 MW. The company targets 900 MW by the end of this year and 1,122 MW by FY27. These green initiatives align with Ambuja’s goal to reduce emissions and energy costs while supporting India’s net-zero vision.

Management Outlook – Confident and Tech-Focused
CEO Vinod Bahety emphasized that Ambuja’s growth strategy combines capacity expansion, cost efficiency, and digital transformation. The company’s Cement Intelligent Network Operations Centre (CiNOC) will integrate AI across operations to boost productivity and supply chain efficiency. Bahety added that favorable policy reforms like GST 2.0 and the Carbon Credit Trading Scheme will further strengthen the industry outlook. Please note that the above information  is based on a Moneycontrol report and is intended solely for educational and informational purposes.

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