Ambuja Cements Q1 FY 2026-27 Results: Net Profit Falls 34% To ₹577 Crore, Revenue Declines 7.5%; EBITDA Margin Contracts

Ambuja Cements Q1 FY 2026-27 Results: Ambuja Cements reported its earnings for the quarter ended June 2026 (Q1 FY27) on Tuesday, July 28, during market hours. Adani Group-owned cement maker reported a 36.6% year-on-year (YoY) decline in consolidated net profit to ₹660 crore for the first quarter of FY 2026-27 (Q1 FY27), compared with ₹1,041 crore in the corresponding quarter last year.

Revenue from operations for the quarter ended June 30, 2026, fell 7.7% YoY to ₹9,500 crore from ₹10,289 crore a year earlier.

Operating performance also softened during the quarter. The company's operating profit, also known as earnings before interest, taxes, depreciation and amortisation (EBITDA), declined 19% YoY to ₹1,589 crore.

Its operating profit margin, or EBITDA margin, narrowed to 16.7% from 19.1% in the corresponding quarter last year.

On a standalone basis, Ambuja Cements' profit after tax (PAT) declined 37% YoY to ₹504 crore from ₹797 crore a year ago. Revenue from operations, however, increased 3% YoY to ₹6,320 crore from ₹6,157 crore in the same quarter last year.

Standalone EBITDA came in at ₹927 crore, down 10% from the year-ago period, while the EBITDA margin stood at 14.67%.

Capacity And Cement Volumes In Q1

Ambuja Cements sold 17.1 million tonnes of cement during the June quarter, compared with 18.4 million tonnes a year earlier.

Trade sales accounted for 78% of the company's overall volumes during the quarter, up by 4 percentage points from the previous year. Premium products contributed 34% of sales, improving by 1 percentage point on a year-on-year basis.

The company's installed cement capacity stood at 109 MTPA as of June 30, 2026. It plans to increase capacity to 119 MTPA by the end of FY27.

The moderation in volumes came as the company focused on improving its sales mix by increasing trade business, reducing lower-margin volumes and expanding the share of blended cement in its portfolio.

Management Commentary

Commenting on the performance, Vinod Bahety, Whole Time Director and CEO of Ambuja Cements, said the company entered FY27 with a continued focus on value-led growth, premium products and disciplined execution.

According to Bahety, higher trade sales and a larger contribution from premium products helped strengthen the company's market mix and supported profitability during the quarter.

He added that Ambuja remains on track to expand its cement capacity to 119 MTPA by the end of FY27 through the commissioning of projects at Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA), Jodhpur (2 MTPA), Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA).

Cost Reduction And Outlook

Ambuja Cements said it reduced operating costs by ₹206 per metric tonne on a sequential basis during the June quarter through operational improvements, better energy efficiency and disciplined cost management, despite higher fuel, freight and logistics costs arising from geopolitical tensions in West Asia.

The company said the impact of elevated imported fuel costs is expected to be more visible during the second quarter because of the industry's 60-90 day fuel inventory cycle.

To offset these pressures, Ambuja is focusing on optimising its fuel mix, increasing the use of renewable energy, improving logistics efficiencies and maintaining tight control over operating costs.

Management reiterated its target of reducing costs by around ₹250 per metric tonne during FY27, with the objective of bringing overall production cost down to ₹4,250 per metric tonne by the end of the financial year.

During the quarter, the company added 75 MW of renewable energy capacity, taking its total renewable portfolio to 973 MW. Green power accounted for 34% of its total energy mix in Q1.

Ambuja said it will continue to focus on capacity expansion, premiumisation, operational efficiency and the growth of its ready-mix concrete business to strengthen its market position.

Ambuja Cements said it remained debt-free as of June 30, 2026. The company reported a net worth of ₹71,954 crore, while cash and cash equivalents stood at ₹844 crore at the end of the quarter.

Ambuja Cements Share Price

Following the earnings announcement, Ambuja Cements shares were trading at ₹424.95 apiece on the National Stock Exchange, down 1.39%.

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