Ambuja Cements Q1 Result: Net profit jumps 23%; revenue rises on higher trade volumes

Its revenue from operations in the March quarter increased 23.5% to ₹10,244 crore as against ₹8,292 crore in the year-ago period.

Ambuja Cement said that this was the highest ever quarterly revenue, supported by higher trade volumes and a higher share of premium products as a percent of trade sales, along with a solutions-orientated product focus and a rejuvenated supply chain.

The strong brand equity backed by a differentiated value proposition, impactful sales promotions, and a rejuvenated supply chain strengthened the company's market leadership, boosting overall realisations, the firm said.

Ambuja Cements reported stable operational performance in Q1 as its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 62.4% to ₹1,916 crore from ₹1,180 crore in the same period of the previous fiscal year.

Its operating profit margin, also known as EBITDA margin, improved to 19% from 14.2% in the corresponding period last year.

The company’s earnings per share (EPS) were at ₹3.20 for the quarter, up 22% YoY with a net worth of ₹66,436 crore, as Ambuja Cement continues to remain debt-free.

Following the earnings, Ambuja Cement shares were trading at ₹605.55 apiece on the National Stock Exchange, tumbling 1.99%.

The company has a current cement capacity of 104.5 MTPA, which is well poised to achieve a planned capacity of 118 MTPA by March 2026. In the reporting quarter, Ambuja also commissioned 57 MW of wind power in Q1 FY26, taking renewable energy capacity to 473 MW.

“We are delivering with a focus on value, business optimisers, solution-focused premium products, a rejuvenated supply chain, and superior brand pull across key markets aided by value unlocking from acquired assets. As we march towards a 140 MTPA ecosystem by FY’28, we remain focused on reimagining cement as a solutions-driven, customer-centric business,” said Vinod Bahety, Whole Time Director & CEO, Ambuja Cements.

“Further, integration of Orient assets has been completed ahead of time with good results from these assets. We have good visibility to sustain this performance and are well-positioned to lead the next phase of growth with a sustainable EBITDA of ₹1,500 PMT,” Bahety further said.

The cement firm also said that the reliability of key manufacturing assets improved significantly, leading to better plant availability, reduced downtime, higher operational efficiency and capacity utilisation, and higher EBITDA per tonne.

The company's acquired assets are now contributing meaningfully in terms of capacity utilisation and EBITDA generation, reaffirming the strategic inorganic expansion.