This article first appeared on GuruFocus .
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Sales Volume:18.9 million tonnes, up 17% YoY.
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Market Share:Improved to 16.6%.
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Revenue:INR 10,277 crores, up 20% YoY.
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Net Income (PAT):INR 378 crores, a jump of 258% YoY.
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Operating EBITDA:INR 1,353 crores, up 53% YoY.
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EBITDA per Tonne:INR 718, up 31% YoY.
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Capacity Utilization:Improved to 58% for acquired assets, with December exit at 65%.
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Total Capacity:109 million tonnes per annum.
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Cost per Tonne:INR 4,500 for December quarter, with December exit below INR 4,000.
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Green Power Share:Increased by 15% to 37%.
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Renewable Energy Footprint:900 megawatts, expected to reach 1,122 megawatts by FY27.
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Diluted EPS:INR 0.82.
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Net Worth:INR 69,854 crores.
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Debt Status:Company remains debt-free.
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Warning! GuruFocus has detected 3 Warning Sign with BOM:500425.
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Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ambuja Cements Ltd ( BOM:500425 ) delivered industry-leading performance with volumes growing at twice the industry average.
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The company achieved a significant improvement in capacity utilization for acquired assets, reaching 65% by the end of December.
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Ambuja Cements Ltd ( BOM:500425 ) reported its highest ever quarterly sales volume at 18.9 million tonnes, up 17% year-over-year.
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The company successfully commissioned a 2.4 million tonnes Marwar Grinding Unit ahead of schedule, increasing total capacity to 109 million tonnes per annum.
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Ambuja Cements Ltd ( BOM:500425 ) maintained a strong balance sheet with a net worth of INR 70,000 crores and remains debt-free.
Negative Points
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The company's operating costs increased, with December quarter costs at INR 4,500 per tonne, up INR 250 from the previous quarter.
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There were delays in the commissioning of the Warisaliganj unit, now scheduled for the first quarter of FY27.
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The company faced challenges with some acquired assets, such as equipment failures at Tandur and Jamul plants.
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Despite improvements, the acquired assets have been a drag on performance, with lower utilization rates compared to expectations.
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Ambuja Cements Ltd ( BOM:500425 ) experienced a decline in cash reserves due to significant CapEx outflows for capacity expansions.
Q & A Highlights
Q: Can you explain the volume growth excluding Orient Cement and the focus on premiumization? A: Excluding Orient Cement, the volume growth is around 6%, which is better than the industry average. The focus is on regaining market share in the trade segment, aiming for a 70%-30% trade to non-trade ratio, which will improve realizations and premiumization. (Vinod Bahety, CEO)
Q: What is the status of renewable energy utilization and its impact on costs? A: Currently, 898 MW of renewable energy is commissioned, but full utilization is pending approvals. The power is being sold in the market, and the income is reported under other operating income. Once approvals are in place, significant cost savings are expected. (Vinod Bahety, CEO)
Q: How are the JP assets at AEL being considered for Ambuja Cements? A: The JP assets are currently with AEL, and any decision regarding their integration with Ambuja Cements will be made by AEL. No comments from Ambuja Cements at this time. (Vinod Bahety, CEO)
Q: Can you provide details on the accounting changes for plant maintenance and coal sales? A: Plant maintenance costs will be amortized over 12 months to avoid quarterly distortions. Coal sales are now reported as gross in revenue and costs due to discussions with auditors, with no impact on EBITDA. (Rohit Soni, CFO)
Q: What are the expectations for cost reductions and their impact on EBITDA? A: Cost reductions are expected across power, fuel, logistics, and raw materials, targeting INR3,800 per tonne by March '27 and INR3,650 by March '28. These reductions will positively impact EBITDA, but specific forward-looking EBITDA figures are not provided. (Vinod Bahety, CEO)
Q: How is the company planning to ramp up acquired assets and improve their performance? A: The target is to achieve 80% utilization and INR1,250 to INR1,300 EBITDA per tonne for acquired assets. Improvements are being made in asset reliability and capacity utilization, with a focus on Sanghi and Penna assets. (Vinod Bahety, CEO)
Q: What is the strategy for future capacity expansion and consolidation in the industry? A: The focus is on ramping up existing assets and organic growth, with a target of 155 million tonnes by FY28. Consolidation opportunities will be considered at the right price, but the current focus is on optimizing existing capacities. (Vinod Bahety, CEO)
Q: Can you provide insights into the demand outlook for Q4 and the industry growth expectations? A: The demand outlook for Q4 is positive, with an expected industry growth of around 8%. Leading players are anticipated to achieve double-digit growth, supported by strong infrastructure and housing demand. (Vinod Bahety, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
