Ambuja Cements Builds Stronger Foundations with Robust Q2 FY26 Performance

Ambuja Cements Limited, a prominent player in India's cement industry, has reported a stellar performance for the second quarter and first half of fiscal year 2026. The company, operating under the Adani Cement umbrella, showcased significant growth across key financial and operational metrics, reinforcing its strategic position in the market. This strong showing comes amidst a period of strategic expansion and efficiency enhancements, setting a positive tone for its future trajectory.

For Q2 FY26, Ambuja Cements recorded a consolidated cement volume of 16.6 million tonnes, marking a substantial 20% year-on-year increase. Revenue from operations climbed by 21% year-on-year to INR 9,174 crore. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) per metric tonne stood at INR 1,060, a 32% jump from the previous year, with an EBITDA margin of 19.2%. Profit After Tax (PAT) witnessed an exceptional surge of 364% year-on-year, reaching INR 2,302 crore. This impressive PAT growth was significantly aided by an income tax provision reversal of INR 1,697 crore for the quarter and half-year ended September 30, 2025.

Operational Excellence and Strategic Expansion Drive Growth

The company's robust performance is a testament to its focus on operational excellence and strategic capacity expansion. Ambuja Cements has embarked on an ambitious journey to increase its total capacity to 155 MTPA (Million Tonnes Per Annum) by FY'28, an upward revision from its earlier target of 140 MTPA. This incremental capacity is being achieved through debottlenecking initiatives, which are highly cost-effective at approximately $48 per metric tonne. This approach allows for rapid expansion while maintaining capital discipline.

Furthermore, the company is installing 13 blenders across various plants over a 12-month period. This move is designed to optimize the product mix, increase the share of premium cement offerings, and thereby improve overall realizations. Logistics infrastructure is also undergoing debottlenecking, expected to boost existing capacity utilization by 3% over 24 months, translating to a better evacuation of 3 million tonnes. These initiatives are crucial for enhancing efficiency and market reach.

Financial Summary (Consolidated - Q2 FY26)

Sustainability and Digital Transformation at the Core

Ambuja Cements is not only focused on financial growth but also on sustainable practices and digital innovation. The company has commissioned 200 MW of solar power, increasing its total renewable energy (RE) capacity to 673 MW. It aims to further expand this to 900 MW by the end of the current fiscal year and 1,122 MW by FY27, with a target of 60% green power share by FY'28. This transition is expected to reduce power costs significantly to INR 4.5 per kWh.

In a move towards digital leadership, Ambuja Cements launched CINOC (Cement Intelligent Network Operations Centre). This AI-powered platform is designed to infuse intelligence into operations and businesses, facilitating a paradigm shift in efficiency, productivity, and stakeholder engagement. The company also ordered 7 vessels with a total capacity of 65,800 DWT to increase its share of sea logistics to 5%, further optimizing transportation costs and reducing its carbon footprint.

A strategic MoU with Container Corporation of India Limited (CONCOR) was signed to promote rail-based transportation of bulk cement, aiming for lowest cost production and contributing to net-zero emissions by 2050. These initiatives underscore Ambuja Cements' commitment to environmental responsibility and operational efficiency.

Outlook and Investor Confidence

Management remains optimistic about delivering double-digit revenue growth and four-digit PMT EBITDA. The company's cost leadership journey is expected to continue, with a target to achieve a total cost of approximately INR 4,000 per PMT by March '26 exit, further reducing to INR 3,650 per PMT by FY'28. Despite some project commissioning delays due to external factors like monsoon, management is confident in achieving its revised timelines.

Ambuja Cements maintains a debt-free status with a robust net worth of INR 69,493 crore and holds the highest credit ratings of Crisil AAA (stable) / Crisil A1+. The company's strategic initiatives, coupled with favorable market conditions driven by government infrastructure spending and housing projects, position it for sustained growth and value creation for its stakeholders. The focus on premium products, market share expansion, and disciplined capital allocation reinforces investor confidence in Ambuja Cements' long-term prospects.