Ambuja Cements Q3 FY26: One Cement Platform, 109 MTPA

What changed in Q3 FY26

Ambuja Cements Limited, part of the Adani Portfolio, reported robust financial results for the quarter ended 31 December 2025. The company described Q3 FY26 as a transformative quarter, led by record volumes and a sharper push towards trade sales and premium cement. Management linked this mix shift to better realisations versus industry peers. The quarter also carried a major corporate action announcement that could reshape the group’s cement operating structure. Ambuja said ACC Limited and Orient Cement Limited are proposed to be amalgamated with Ambuja Cements, creating a unified “One Cement Platform”. The company positioned the move as a step toward operational excellence, capital efficiency, and long-term value creation.

Volume growth and realisation focus

Ambuja highlighted volume growth at 2x the industry average, supported by higher base capacity volume growth. It said it achieved its highest-ever quarterly volumes in Q3 FY26. A key operational theme was mix improvement: higher trade and premium cement sales were cited as the driver of better realisations than peers. The company also pointed to R&D-led customised cement solutions as an enabler to increase the share of trade and premium products. It said institutional customers are being served with high quality, high strength and green cement, approved for highways, metros, and other structural engineering requirements. While Ambuja did not quantify the trade or premium share in the provided disclosure, it repeatedly tied mix to the quarter’s performance and market position.

Capacity now at 109 MTPA after Marwar unit

Ambuja commissioned the 2.4 MTPA Marwar Grinding Unit during the quarter, taking total cement capacity to 109 MTPA. The company said the Marwar unit was successfully operationalised. It also reiterated a near-term capacity milestone of 115 MTPA by March 2026. Within that plan, the Warisaliganj unit timeline has shifted: Warisaliganj, earlier targeted by March 2026, is now expected to be operational in Q1 FY27. Management also acknowledged temporary operational disruptions, including one-time expenses, preponed maintenance, and equipment failures at a couple of plants.

One Cement Platform: ACC and Orient proposed merger into Ambuja

The proposed amalgamation of ACC Limited and Orient Cement Limited with Ambuja Cements is intended to create a pan-India cement platform under a single corporate structure. Ambuja said the consolidation is expected to optimise manufacturing and logistics, streamline operations, and strengthen the balance sheet. The company framed the combination as a way to enable more efficient capital allocation and faster decision-making. Completion is subject to requisite approvals and is expected over FY27, according to the company’s statement. Ambuja presented this as a defining step in Q3 FY26, alongside capacity additions and a renewed focus on cost.

Cost roadmap: targeting ₹3,650 per metric tonne by March 2028

Management identified cost correction as a priority area after the quarter’s operational intensity. CEO Vinod Bahety said the company is working on specific cost issues, including power cost, share of green power, fuel efficiency, improvement of WHRS and AFR, and logistics cost. Ambuja reiterated its blueprint target to reach a total cost of ₹3,650 per metric tonne by March 2028. The company also said its December exit cost was below ₹4,000 per tonne, even as Q3 FY26 saw a temporary increase in costs due to one-time items. Other levers mentioned in the broader strategy narrative included improving captive coal share, optimising fuel flexibility, enhancing kiln fuel efficiency, and increasing the use of cheaper alternative raw materials.

Expansion targets and the utilisation trade-off

Ambuja’s stated expansion ambition includes reaching 155 MTPA by March 2028, backed by organic growth and acquisitions, as referenced in the provided material. Separately, a line in the supplied text indicates the company “may delay” the 155 MTPA target by two years to improve utilisation rates, signalling a potential sequencing shift between capacity build-out and demand absorption. In addition, another portion of the provided material references milestones of 118 MTPA by FY26 and 140 MTPA by FY28, primarily through brownfield expansions. The disclosures together underline two parallel investor questions for FY26 to FY28: how quickly capacity is commissioned, and how consistently utilisation and unit costs improve while new assets are integrated.

Demand outlook: industry growth pegged near 8% for FY26

Management said it remains bullish on cement demand and expects industry growth of around 8% for FY26. The drivers cited were sustained infrastructure activity and housing demand across India. Ambuja also linked demand visibility to its push for premiumisation and institutional approvals for green cement in highways and metro projects. Even with pricing volatility expected to persist, the company positioned cost discipline as the primary offset to market-level price swings.

Balance sheet references and FY25 scale indicators

The supplied material describes Ambuja as debt-free with the highest credit ratings, positioning it as well-capitalised for expansion funded through internal accruals. It also includes FY25 consolidated indicators for Adani group’s cement business: annual sales volume of 65.2 million tonnes, revenue of ₹35,045 crore, and profit after tax of ₹5,158 crore. Separate net worth figures were also cited: net worth rose by ₹12,969 crore to ₹63,811 crore at the close of FY25 and increased further to ₹69,493 crore by Q2 FY26. These figures were presented in the context of strengthening financial fundamentals alongside expansion.

Sustainability and logistics levers highlighted

Ambuja’s narrative included a growing focus on green power and efficiency upgrades. It stated an aim for 60% of future cement capacity and 83% of clinker operations to be powered by green energy. Logistics was also framed as a structural cost area, with the material citing industry logistics costs that can reach 30%-35%, and noting the company’s initiatives such as seaborne transport to reduce logistics costs. These elements were positioned as recurring levers supporting the longer-term cost target.

Key facts snapshot

Why the quarter matters for investors

For investors, Q3 FY26 is less about a single operational metric and more about the direction of execution across three tracks: premiumisation, scale-up, and cost leadership. Ambuja linked its best-ever quarterly volumes and higher trade and premium share to better realisations, while simultaneously signalling that cost will be the key margin driver through FY26 to FY28. The One Cement Platform proposal adds a corporate simplification layer that the company expects will improve manufacturing and logistics decisions and capital allocation. At the same time, the Warisaliganj delay and references to equipment failures show execution risk during an aggressive commissioning cycle.

What to watch next

The next set of milestones is operational and procedural. On operations, investors will track progress toward 115 MTPA by March 2026 and the revised Warisaliganj commissioning in Q1 FY27. On costs, the focus will be whether the company sustains an exit cost below ₹4,000 per tonne while moving toward ₹3,650 per tonne by March 2028. On structure, the key event is the approval process and timeline for the proposed ACC and Orient amalgamation, which the company expects to complete over FY27.

Conclusion

Ambuja Cements used Q3 FY26 to highlight record volumes, a stronger mix skewed toward trade and premium cement, and capacity expansion to 109 MTPA following the Marwar grinding unit commissioning. The quarter also set the stage for the proposed One Cement Platform through the amalgamation of ACC and Orient into Ambuja, subject to approvals and expected over FY27. Near-term execution will hinge on commissioning timelines, including Warisaliganj’s shift to Q1 FY27, and on delivering the cost roadmap toward ₹3,650 per metric tonne by March 2028.