- Ambuja Cements reported 16.5 million tonnes of cement sales in Q2 FY27
- Revenue from operations was Rs 9,197 crore with an Ebitda margin of 13.8%
- The company commissioned 4.6 MTPA of new cement capacity in Q2 FY27
Ambuja Cements reported cement sales volume of 16.5 million tonnes in the second quarter of fiscal 2027, with a stronger trade mix and higher contribution from premium products supporting revenue quality. Revenue from operations stood at Rs 9,197 crore, while operating Ebitda was Rs 1,271 crore.
The company reported an Ebitda margin of 13.8% and Ebitda per tonne of Rs 770 for the quarter.
Trade volumes increased 8.6% year-on-year, while the share of trade sales in the overall mix rose by six percentage points to 74%. Premium products accounted for 37% of trade sales, up two percentage points from a year earlier.
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Vinod Bahety, whole-time director and CEO of Ambuja Cements, said the company's second-quarter and first-half performance reflected its focus on quality growth despite seasonal and external headwinds.
“Strengthening trade and premium product mix improved revenue quality, while disciplined execution and cost management supported profitability,” Bahety said.
Ambuja commissioned 4.6 million tonnes per annum (MTPA) of cement capacity during the September quarter. The additions comprised 1.2 MTPA at Dahej, 2.4 MTPA at Salai Banwa and 1 MTPA at Kalamboli. Another 3.2 MTPA of capacity is being stabilised and ramped up in the second half of FY27. This includes 1.2 MTPA at Bathinda and 2 MTPA at Jodhpur Penna.
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The company also expects to commission 2.4 MTPA at Warisaliganj during the second half of FY27.
Bahety said Ambuja would continue to strengthen its earnings drivers through manufacturing excellence, energy efficiency, logistics optimisation and digitalisation. He added that 4.6 MTPA was commissioned in the second quarter, with another 5.6 MTPA either ramping up or expected to be commissioned in the second half of FY27.
Ambuja said elevated fuel and logistics costs continued to weigh on the cement industry, with higher petcoke and coal prices, constrained coal availability, and increased diesel and packaging costs putting pressure on operating expenses.
The company prioritised market discipline, an improved product mix and sustainable profitability amid these cost pressures.
Logistics costs were moderately higher year-on-year due to increased diesel prices. This was partly offset by a reduction in the average primary lead distance, the distance cement travels from the manufacturing plant to the distribution point, from 265 km to 254 km. Planned shutdowns at major plants were also completed during the quarter.
Ambuja's total cost stood at Rs 4,410 per tonne in Q2 FY27. Excluding the impact of geopolitical conflicts, the cost was Rs 4,182 per tonne, the company said.
Ambuja shareholders have approved the proposed amalgamation of ACC and Orient Cement with Ambuja Cements, advancing the group's plan to consolidate its cement businesses under a single platform. The schemes remain subject to the requisite approvals, with completion expected in FY27.
The proposed consolidation is intended to advance the group's One Cement Platform strategy as it expands capacity and works to improve operational efficiencies across its businesses.
Ambuja reported a net worth of Rs 72,238 crore and cash and cash equivalents of Rs 1,070 crore, maintaining a debt-free balance sheet.
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