Analyst Concall
Ambuja Cements plans INR 90 bln-INR 100 bln capex for FY26
This story was originally published at 19:29 IST on 31 July 2025
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--Ambuja Cements: Current net cash position at INR 30.00 billion
--CONTEXT: Comments by Ambuja Cements' mgmt in post-earnings conference call
--Ambuja Cements: See capex for FY26 at INR 90 bln-INR 100 bln
--Ambuja Cements: Aim to reduce cost instead of expanding Orient Cement FY26
--Ambuja Cements: Brand positioning of Ambuja in south India positive
By J. Navya Sruthi and Srijita Bose
MUMBAI – Ambuja Cements Ltd. plans capital expenditure of about INR 90 billion to INR 100 billion for 2025-26 (Apr-Mar), Chief Executive Officer Vinod Bahety Thursday said in a post-earnings conference call with analysts. Healthy cash flows are expected to support the company's capital expenditure programme.
The company's top official said current cash flow of the company is at INR 30.00 billion, which also includes the overall aquisition of Orient Cement. Ambuja Cements has increased its ownership in Orient Cement to 72.66% by acquiring an additional 26% stake through an open offer, according to media reports.
The management reiterated that Ambuja Cements is well poised to achieve the planned capacity of 118 million tonnes per annum by end of March 2026. The company's present cement capacity is at 104.5 million tonnes per annum.
The cement maker's consolidated net profit rose over 23% on year to INR 7.88 billion in the June quarter, lower than analysts' expectation of INR 8.95 billion. The company's revenue from operations rose over 23% on year to INR 102.44 billion.
Commenting about expansion of Orient Cement, the management said the company aims to reduce cost instead of expanding Orient Cement in FY26. "I think right now our priority is to improve the overall efficiency at Orient than immediate expansion. And therefore, this financial year, it is more of achieving the desired cost numbers," Bahety said.
"Our momentum is built on strong value focus, robust volume growth, price improvement, deeper channel engagement, premium product sales improvement, agile supply chain, stronger brand pool market across and smart cost efficiencies, amplified by seamless integration of orient cement which we acquired in April 2025," Baheti said. "We have re-imagined business fundamentals. This has helped us achieve the highest revenue in a quarter, highest quarterly EBITDA and improve our market share by 2%."
In terms of business basis on geography, the management said business from southern India has been a good contributor in the June quarter. "I'm bullish with respect to demand and, therefore, I'm also positive with respect to prices," the top official said. Also, the brand positioning of Ambuja Cements is positive in south India.
Commenting on geographical sales, the management said ACC Cement has been very dominant in east and south from past, while it was Ambuja Cements in north and west, and that continues. "In fact, now the blend is actually helping us on an overall basis. So please look it on an overall basis, and of course ACC with its brand equity strength, it is getting the price benefit." Ambuja Cements owns 50.05% of the ACC Cement. End
Edited by Akul Nishant Akhoury
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