Adani Cement: Building a Stronger Foundation with Record Q2 FY26 Performance

Adani Cement, a leading player in India's building materials sector, has reported an exceptional performance for the second quarter of Fiscal Year 2026 (Q2 FY26). The company, comprising Ambuja Cements and ACC, demonstrated robust growth across key financial and operational metrics, reinforcing its position as a market leader. This quarter's results underscore the effectiveness of its strategic initiatives, disciplined execution, and a strong focus on sustainability and digital transformation.

For Q2 FY26, Adani Cement achieved its highest-ever sales volume at 16.6 million tonnes (MnT) on a consolidated basis, marking a significant 20% year-on-year (YoY) increase. This growth rate is nearly five times the industry average, highlighting the company's aggressive market penetration and customer preference. Consolidated revenue from operations also reached an all-time high of INR 9,174 crore, up 21% YoY. This impressive top-line growth was complemented by a substantial improvement in profitability, with EBITDA soaring by 58% YoY to INR 1,761 crore. The EBITDA margin expanded by a healthy 4.5 percentage points to 19.2%, reflecting enhanced operational efficiency and cost management. Profit After Tax (PAT) witnessed an extraordinary surge of 364% YoY, reaching INR 2,302 crore, driven by strong operational performance and a one-time income tax provision reversal of INR 1,697 crore.

Operational Excellence and Strategic Growth

Adani Cement's strong performance is a testament to its multi-pronged strategy focusing on capacity expansion, cost leadership, and market penetration. The company has revised its FY'28 target capacity upwards by 15 MTPA, from 140 MTPA to an ambitious 155 MTPA. This incremental capacity will be achieved through debottlenecking existing plants at a significantly lower capital expenditure of $48 per metric tonne, demonstrating a capital-efficient growth approach. The company is also installing 13 blenders across its plants over the next 12 months to optimize its product mix and increase the share of premium cement, which is expected to further improve realizations.

In terms of operational efficiency, Adani Cement has achieved a 5% YoY reduction in total costs, primarily driven by lower kiln fuel costs and improved synergies within the Adani Group ecosystem. The company aims to further reduce its total cost to approximately INR 4,000 per metric tonne by March 2026 and to INR 3,650 per metric tonne by the end of FY28. This cost leadership journey is supported by increasing green power adoption, with renewable energy capacity reaching 673 MW and a target of 60% green power share by FY28. This will reduce power costs to INR 4.5 per kWh from the current INR 6.0 per kWh.

Financial Summary (Consolidated) - Q2 FY26

Digital Transformation and Sustainability Leadership

Adani Cement is at the forefront of digital transformation in the industry. The launch of CINOC (Cement Intelligent Network Operations Centre) is a key initiative to infuse an AI layer deep into its enterprise fabric, transforming operations and enhancing efficiency, productivity, and stakeholder engagement. This move is expected to bring a paradigm shift in how the company operates, leveraging technology for competitive advantage.

Sustainability remains a core pillar of Adani Cement's strategy. The company has made significant strides in decarbonization, including the world's first commercial deployment of Coolbrook's RotoDynamic Heater (RDH) technology at its Boyareddypalli plant. This innovative solution, powered entirely by Adani Cement's renewable energy portfolio, is expected to directly reduce approximately 60,000 tonnes of CO2 emissions annually, with a potential for a tenfold increase. Furthermore, Adani Cement has become the first Indian cement company to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, reinforcing its commitment to nature-positive manufacturing and environmental stewardship. These initiatives align with the company's SBTi-validated net-zero targets for 2050.

Market Outlook and Future Prospects

The Indian cement industry is poised for growth, with demand expected to expand by 7%-8% in FY26, driven by favorable policy measures like GST 2.0 reforms, increased government capital outlay, and a rebound in rural and urban infrastructure and housing projects. Adani Cement is well-positioned to capitalize on this demand, with its extensive pan-India presence, strong brand equity, and diversified product portfolio. The company's strategic partnerships, such as the MoU with CONCOR for rail-based logistics, will further optimize its supply chain and reduce costs.

While the company acknowledged some challenges, including an increase in working capital and minor delays in certain project commissionings due to monsoons, the overall outlook remains highly positive. Management's transparent communication and proactive measures to address these issues instill confidence. Adani Cement's relentless pursuit of cost leadership, strategic capacity expansion, and commitment to sustainability and digital innovation are expected to drive sustained double-digit revenue growth and four-digit PMT EBITDA in the coming quarters, solidifying its role in building a stronger India.