Adani Group-backed Ambuja Cements reported a strong operational performance in the first quarter of FY27, driven by higher trade sales, premium products and disciplined cost management.
The company also reaffirmed its commitment to expanding cement manufacturing capacity to 119 million tonnes per annum (MTPA) by the end of the financial year.
Despite temporary cost pressures caused by geopolitical tensions in West Asia, Ambuja Cements improved its profitability during the April-June quarter.
The company’s EBITDA margin expanded by 331 basis points sequentially to 16.7 per cent, supported by operational efficiencies and a stronger product mix.
The company reduced costs by ₹206 per metric tonne (PMT) through improved energy efficiency, a lower clinker factor, operational excellence and disciplined cost optimisation.
Ambuja Cements reported a consolidated net profit of ₹660 crore, while revenue from operations stood at ₹9,500 crore during the first quarter.
Operating EBITDA reached ₹1,589 crore, reflecting steady growth despite external challenges.
Vinod Bahety, Whole-Time Director and CEO of Ambuja Cements, said the company started FY27 with strong momentum, driven by value-led growth, premiumisation and higher trade sales.
The company remains on track to achieve 119 MTPA capacity by the end of FY27, with trial production underway at four new plants and the remaining two set to begin in the second quarter.
Ambuja Cements also maintained a debt-free balance sheet, with a net worth of ₹71,954 crore and cash reserves of ₹844 crore. It also remains optimistic about India’s long-term cement demand, driven by infrastructure, urbanisation and housing growth.
The company cautioned that near-term demand could remain affected by the monsoon season, geopolitical uncertainties and volatility in input costs.
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