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Informist, Tuesday, Jul. 28, 2026

 

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--Ambuja Cements Apr-Jun consol net profit INR 5.77 bln
--Analysts saw Ambuja Cements Apr-Jun consol net profit at INR 4.56 bln
--Ambuja Cements Apr-Jun consol revenue INR 94.74 bln
--Analysts saw Ambuja Cements Apr-Jun consol revenue at INR 103.31 bln
--Ambuja Cements Apr-Jun consol PAT INR 5.77 bln vs INR 8.69 bln yr ago
--Ambuja Cements Apr-Jun consol sales INR 94.74 bln vs INR 102.44 bln yr ago
--Ambuja Cements Q1 consol other income INR 1.69 bln vs INR 2.56 bln yr ago
--Ambuja Cements Q1 consol power, fuel costs INR 23.89 bln vs INR 25.13 bln
--Ambuja Cements Q1 consol raw material costs INR 15.26 bln vs INR 15.36 bln
--Ambuja Cements Q1 consol freight cost INR 22.58 bln vs INR 24.23 bln
--Ambuja Cements Q1 consol cement sales INR 90.6 bln vs INR 99.1 bln yr ago
--Ambuja Cements Q1 consol readymix concrete sales INR 5.1 bln vs INR 4.2 bln
--Ambuja Cements Q1 cement sales volume 17.1 mln tn vs 18.4 mln tn yr ago
--Ambuja Cements Q1 consol operating EBITDA INR 15.89 bln vs INR 19.61 bln
--Ambuja Cements Q1 consol operating EBITDA margin 16.7% vs 19.1% yr ago
--Ambuja Cements Q1 consol operating EBITDA/tn INR 931 vs INR 1,069 yr ago
--Ambuja Cements Q1 consol normalised PAT INR 5.95 bln vs INR 10.11 bln

 

By Ashutosh Pati

 

MUMBAI – Ambuja Cements Ltd. Tuesday reported a sharp fall in both its bottom line and top line for the June quarter, primarily due to lower revenue from cements sales. The company's net profit was higher than estimates but its revenue from operations for the quarter missed analysts' expectations by a wide margin.

 

Ambuja Cements' consolidated net profit for the June quarter plunged nearly 34% on year to INR 5.77 billion. However, it was higher than expectations of INR 4.56 billion. Its revenue for the quarter fell 7.5% on year to INR 94.74 billion, and also missed projections of INR 103.31 billion. This was mainly due to the sharp fall in cement sales volumes for the quarter. The company had an INR 1.11 billion one-time gain for the quarter on interest earned with respect to certain matters on High Court decisions from earlier years. Its normalised net profit for the quarter was INR 5.95 billion, significantly lower than INR 10.11 billion a year ago. 

 

The cement major's sales volume declined 7% to 17.1 million tonnes for the June quarter from 18.4 million tonnes in the year ago quarter. Its revenue from cement segment also slumped around 9% to INR 90.6 billion for the quarter from INR 99.1 billion a year ago. However, revenue from ready mix concrete segment rose over 20% on year to INR 5.07 billion.

 

Ambuja Cements' other income fell 34% on year to INR 1.69 billion for the June quarter. The total expenses of Ambuja Cements fell around 4% on year to INR 88.02 billion due to a decline in power and fuel costs and freight and forwarding expenses. Its other expenses, however, rose during the quarter, along with depreciation and amortisation expenses. The company's power and fuel costs fell around 5% on year to INR 23.89 billion and freight and forwarding expenses were down around 7% at INR 22.58 billion. Ambuja's cost of materials consumed fell slightly on year to INR 15.26 billon. Analysts had expected these expenses to rise sharply due to the war in West Asia.

 

The company's other expenses rose around 3% on year to INR 14.88 billion and depreciation and amortisation expenses were up nearly 9% at INR 8.34 billion. Other expenses were higher due to higher packing material costs stemming from the West Asia war and planned shutdowns, the company said. "Unified business model, digital initiatives and synergies between cement businesses and group will bring down these cost in the coming quarter," it said.

 

Ambuja Cements' operatings earnings before interest, tax, depreciation, and amortisation for the quarer fell around 19% on year to INR 15.89 billion. Its operating EBITDA margin shrunk to 16.7% from 19.1% in the year ago quarter. The company's operating EBITDA per tonne fell to INR 931 for the June quarter from INR 1,069 a year ago. 

 

 

Ambuja Cements reduced costs by INR 206 per tonne sequentially during the June quarter. "Despite temporary cost headwinds arising from the West Asia geopolitical tensions, we delivered a sequential cost reduction...through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management," Whole Time Director and Chief Executive Officer Vinod Bahety said in a release. Bahety said they are on course to deliver cost reduction of INR 250 per tonne to achieve the target cost of INR 4,250 per tonne by the end of 2026-27 (Apr-Mar). 

 

The company is also on track to increase capacity to 119 million tonnes per annum by FY27 end from 109 million tonnes per annum as of Jun. 30. Trial production has commenced at the Dahej plant in Gujarat, Salai Banwa plant in Uttar Pradesh, Bathinda plant in Punjab, and Jodhpur plant in Rajasthan. The four million tonnes per annum cliner line in Maratha in Maharashtra will be commissioned in 2027, the company said.

 

The domestic cement sector witnessed cost pressures during the June quarter due to higher prices of imported fuels, coupled with rise in freight and logistics costs, due to the war in West Asia. Packaging costs rose 25-30% during the quarter. "Given the 60–90 day fuel inventory cycle, the impact of peak fuel cost inflation is expected to coincide with the seasonally weaker Q2, potentially impacting industry profitability in the near term," the company said.

 

The company declared its June quarter results during market hours Tuesday. Shares of Ambuja Cements closed at INR 426 on the National Stock Exchange, down 1.2% from Monday.  End

 

Edited by Akul Nishant Akhoury

 

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