Ambuja Cements Q2 Review: Jefferies Hikes Target Price After Stellar Numbers — Details Inside

Jefferies has released a bullish note on Ambuja Cements Ltd. after the company posted a strong September quarter, where profit more than tripled.

In its latest note, Jefferies has maintained a 'buy' rating on Ambuja Cements while hiking the target price from Rs 770 to Rs 755.

The brokerage firm cited 'strong beat on better volumes and unit profitability' for the company's optimistic outlook. The note further noted that it was the "third consecutive quarter of an improving trend in operating performance" for the Adani Group cement manufacturer.

This comes on the back of Ambuja reporting strong earnings on Monday. The company's consolidated revenue for the quarter grew 25% year-on-year to Rs 9,130 crore, up from Rs 7,305 crore, reflecting healthy demand.

Operational efficiency was a key highlight, as Ebitda nearly doubled to Rs 1,716 crore from Rs 864 crore. This pushed Ebitda margins significantly to 18.8% from 11.8% in the same period last year.

Moreover, the company’s consolidated net profit surged to Rs 1,766 crore from Rs 480 crore a year ago.

Ambuja Cements Q2: Consolidated (YoY)

• Net Profit At Rs 1,766 crore versus Rs 480 crore

• Tax Write-Back Of Rs 1,710 crore In Q2 FY26

• Revenue up 25% at Rs 9,130 crore versus Rs 7,305 crore

• Ebitda up 98.7% at Rs 1,716 crore Rs 864 crore

• Margin at 18.8% verus 11.8%

Jefferies noted that Ambuja's volume guidance remains robust while praising the company's concrete cost savings targets.

The firm maintained a positive stance on the counter and expects the company to deliver returns going forward.

Shares of Ambuja Cements closed with gains of more than 2.3% in trade on Monday and has gained over 7% on a year-to-date basis. It is also trading with a relative strength index of 56, which suggests the stock is not in an overbought territory.