05 - 05 - 2026

Ambuja Cements Q4 cons net rises 37% to ₹1,857.43 crore

By Our Bureau
Mumbai, May 4, 2026

Ambuja Cements Ltd reported a 37% year-on-year rise in consolidated net profit to ₹1,857.43 crore for the fourth quarter ended March 31, 2026, primarily driven by a tax credit of ₹1,329.3 crore. In comparison, the Adani Group company, had posted a net profit of ₹1,351.46 crore during the comparable year-ago quarter.

The result for the reporting quarter compares with that of the previous fiscal, which was impacted by different tax structures and lower volumes, the company said in a statement.

Consolidated Financial Performance

*Note: FY25 figures include one-time income from Excise Duty refunds (₹826 crore) and GST incentives (₹138 crore). On a normalised basis (excluding these one-offs), the FY25 EBITDA was ₹5,006 crore with a 14.6% margin (₹789 PMT), representing a 31% year-on-year improvement in FY26.

On a normalised basis, the company’s net profit fell 33.5% to ₹569 crore from ₹856 crore recorded during the year-ago quarter.

The company’s revenue from operations rose 9% to ₹10,915.47 crore, compared with ₹9,980.55 crore reported in the same period last year. For the full year, the company delivered its highest-ever annual volume of 73.7 million tonne (MT) and an annual revenue of ₹40,656 crore.

Operationally, the company achieved its highest-ever quarterly sales volume of 19.9 MT, a 10% YoY growth, supported by improved realisations from a higher share of trade and premium products, and better utilisation of existing assets.

“FY26 has been year of resilience for the cement sector which has witnessed consolidation, GST 2.0 reforms on one side, while adverse weather conditions, global geo-political factors and state elections affected some or the other way. Against this backdrop, Ambuja Cements delivered a resilient performance for the year with highest ever annual volume of 73.7 MT, revenue of ₹40,656 crore, EBITDA at ₹6,539 crore and normalised PAT of ₹2,647 crore,” Ambuja Cements CEO Vinod Bahety said.

For the quarter, Ambuja Cements recorded an operating EBITDA of ₹1,464 crore, with a margin of 13.4%. The EBITDA per tonne stood at ₹735. While the operating margin saw a contraction from the 18.7% recorded in the previous year’s fourth quarter, the annual performance remained robust. The annual operating EBITDA for the full year stood at ₹6,539 crore.

West Asia conflict

The company highlighted that the West Asia conflict has introduced significant cost pressures. Rising costs for fuel, diesel, and packaging bags, coupled with the depreciation of the Indian Rupee, impacted the quarter’s performance. These headwinds are expected to continue into the first half of the financial year 2027 (H1 FY27). In response, Ambuja Cements is actively strengthening cost-mitigation measures through fuel mix optimisation, higher renewable energy usage, and reducing logistics costs via rail and sea.

On the strategic front, the company completed the amalgamation of Sanghi Cement and Penna Cement with Ambuja Cements. Sanghi was subsequently delisted from stock exchanges effective April 6, 2026. ACC Limited and Orient Cement are currently awaiting no-objection certificates from the Securities and Exchange Board of India (SEBI).

“FY26 marked a transition from expansion to consolidation with significant progress on ‘One cement platform’ wherein Sanghi and Penna merged successfully with Ambuja,” Bahety added. “We remain focused on stabilising new capacities, strengthening operating efficiency and improving asset utilisation, supported by a debt‑free balance sheet, strong liquidity and the highest credit ratings.”

In terms of capacity expansion, the company’s total cement capacity increased to 109 Million Tonnes Per Annum (MTPA) during the year. This was bolstered by the commissioning of 10.7 MTPA in new grinding units across locations including Marwar, Farakka, Sankrail, Sindri, and Krishnapatnam. An additional clinker capacity of 7 MTPA was also commissioned at Jodhpur and Bhatapara.

Looking ahead to the first half of the next fiscal year, the company expects to commission additional grinding capacities in Dahej, Bhatinda, Salai Banwa, Kalamboli, Jodhpur, and Warisaliganj, which is projected to bring total capacity to 119 MTPA.

“While India’s long-term infrastructure growth story remains fundamentally strong, the outlook for FY’27 growth remains soft due to current geopolitical challenges and early forecast of below normal monsoon. We expect industry demand at about 5% for FY27.”

The company’s board has recommended a dividend on equity shares of ₹2 per share. Ambuja Cements continues to maintain a debt-free status, which the management believes positions the firm well for sustainable growth despite the anticipated softening of industry demand in the coming year.