Ambuja Cements Q4 FY26: profit up, margins slip

Key takeaway from the March-quarter print

Ambuja Cements, owned by the Adani Group, reported a mixed set of March-quarter (Q4 FY26) numbers: record volumes and revenue, but weaker operating margins due to cost pressures. Reported consolidated net profit jumped year-on-year, helped by tax-related reversals and credits linked to recent mergers. At the same time, the company and its investor materials pointed to a lower “normalised” profit after adjusting for one-offs. Management also flagged that cost headwinds could extend into H1 FY27, with fuel, diesel, packaging constraints and rupee depreciation in focus.

Profit: reported surge versus normalised decline

In its exchange filing, Ambuja reported consolidated net profit of Rs 1,830 crore for Q4 FY26 versus Rs 1,025 crore a year ago, a 78% year-on-year increase. Separately, the company’s investor presentation described reported consolidated net profit of Rs 1,857 crore for the quarter versus Rs 1,351 crore a year earlier. The same presentation stated that normalised consolidated net profit fell 33% to Rs 569 crore from Rs 856 crore, after adjusting for one-offs.

The investor presentation attributed the elevated reported profit largely to one-off items, particularly tax reversals and deferred tax credits arising from the merger of Sanghi Industries and Penna Cement. It also noted that the normalised profit adjusts for other one-offs including stamp duty, provisions and litigation-related items. This split between reported and normalised metrics became central to how the quarter was read by the market.

Revenue hits a quarterly record as volumes scale up

Ambuja’s revenue from operations for Q4 FY26 was reported at Rs 10,892 crore in the exchange filing, up 10% from Rs 9,894 crore a year ago. The investor presentation put quarterly revenue at a record Rs 10,915 crore, up 9% from Rs 9,981 crore.

Operationally, the company said it delivered its highest-ever sales volume in a quarter at 19.9 million tonnes, up 10% year-on-year. Ambuja also said the quarter saw its highest-ever revenue, supported by improved realisations and a higher share of trade and premium products.

EBITDA pressure: margin falls to 13.4%

Operating performance weakened in Q4 FY26 despite the topline growth. EBITDA for the quarter stood at Rs 1,464 crore, with EBITDA margin at 13.4%. The investor presentation compared this to an EBITDA of Rs 1,868 crore a year ago and an EBITDA margin of 18.7%, implying a sharp contraction.

Ambuja reported PMT EBITDA of Rs 735 for the quarter under review. The company also reiterated that it remains debt-free, positioning liquidity and balance sheet strength as buffers even when costs rise.

What drove margin compression this quarter

Ambuja cited cost pressures from fuel, diesel, packaging bag supply constraints, and rupee depreciation. It said these factors impacted Q4 FY26 and are expected to continue in H1 FY27. The investor presentation also highlighted a sharp rise in petcoke prices during the quarter, alongside packaging constraints and labour-related disruptions.

To respond, the company said it is strengthening cost-mitigation measures through fuel mix optimisation, higher renewable energy usage, reduced logistics costs via rail and sea, and disciplined production and inventory management.

Dividend announced: Rs 2 per share with June record date

The board recommended a dividend of Rs 2 per equity share for FY 2025-26. It fixed Friday, June 12, 2026 as the record date to determine shareholder eligibility. The dividend is subject to shareholder approval and, if approved, will be paid on or after July 1, 2026.

Mergers and capacity updates

Ambuja said the amalgamation of Sanghi and Penna Cement with Ambuja Cements was completed, and Sanghi got delisted with effect from April 6, 2026. The company also noted that companies are awaiting no-objection certificates from Sebi.

On the operations side, Ambuja commissioned a clinkering line of 3 MTPA at Jodhpur during Q4. It also started a trial run for a 1.2 MTPA Dahej GU Line 2.

FY26 scorecard and FY27 demand outlook

For FY26, management said Ambuja delivered its highest-ever annual volume of 73.7 MnT. It reported annual revenue of Rs 40,656 crore and annual EBITDA of Rs 6,539 crore, with EBITDA of Rs 887 PMT. It also disclosed normalised PAT of Rs 2,647 crore for the year.

Looking ahead, management said the outlook for FY27 growth remains soft due to current geopolitical challenges and an early forecast of below-normal monsoon. It expects industry demand growth at 5% for FY27, while reiterating that India’s long-term infrastructure growth story remains strong.

Market reaction and what investors tracked

Following the announcement of results, Ambuja’s shares fell as low as 5% on BSE during Friday’s session, as per the provided market update. Separately, another market update in the same material said the stock slipped 4.95% to close at Rs 509.50 on NSE and had declined over 17% in the past six months.

Investor focus in this quarter largely centred on the gap between reported profit and normalised profit, and on whether margins can stabilise as fuel and logistics costs remain elevated.

Snapshot table: Q4 FY26 and FY26 highlights

Conclusion

Ambuja Cements closed Q4 FY26 with record volumes and revenue, but faced clear operating pressure as EBITDA margins fell to 13.4%. Reported profit was boosted by merger-linked tax reversals and deferred tax credits, while normalised profit declined year-on-year. The company has proposed a Rs 2 dividend, with June 12, 2026 set as the record date and payment planned on or after July 1, 2026, subject to shareholder approval. Near-term attention remains on cost trends flagged for H1 FY27 and on the ramp-up of newly commissioned and trial-run capacity additions.