Ambuja Cements Q2 Review — IDBI Capital Revises Target Price Post Strong Quarter With Robust Margin Gains

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Ambuja Cements Ltd.’s standalone Q2 FY26 results reflected strong operational momentum with revenue of Rs 53 billion, rising 20% YoY and 4% sequentially, supported by robust demand, improved realizations, and higher premium product contribution.

Cement sales volumes stood at 8.8 million tonnes, growing 19% YoY and 3% QoQ. Operating Ebitda increased to Rs 10 billion, up 32% from Rs 7.8 billion a year ago and 6% from Rs 9.7 billion in the previous quarter, driven by lower fuel and power costs, and improved efficiency.

Ebitda/tonne stood at Rs 1,167 compared to Rs 1,010 in Q1 FY26 and Rs 988 in Q2 FY25. PAT rose sharply to Rs 7.9 billion from Rs 5.1 billion last year, reflecting both higher operating income and cost optimization benefits.

We revise our target price for Ambuja Cements to Rs 651 and maintain a Hold rating, valuing it at 21x FY27E EV/Ebitda, with its ACC stake discounted by 20% to CMP.

Ambuja remains net-debt-free with a net worth of Rs 694.9 billion, while management reaffirmed its capex plan to reach 155 MTPA capacity by FY28 through low-cost debottlenecking at $48/tonne.

Management also guided for a total cost reduction to Rs 4,000/tonne by March 2026, reflecting sustained operating leverage and margin resilience.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.