Ambuja Cements Q2 results: Consolidated net profit drops 84% YoY amid challenging operating conditions

Its revenue from operations for the quarter ended September 30, 2026, rose marginally to ₹9,166 crore as against ₹9,130 crore in the year-ago period.

Ambuja Cements also reported a decline in operational performance in Q2 as its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), slipped 28% to ₹1,240 crore from ₹1,717 crore in the same period of the previous fiscal year.

Its operating profit margin, also known as EBITDA margin, contracted to 13.53% from 18.81% in the corresponding period last year.

Factors impacting Q2

Ambuja Cements in investors’ presentation said operating conditions remained challenging in Q2 FY27 due to geopolitical issues, monsoon-related disruptions, seasonal shutdowns and higher energy costs amid global uncertainty and constraints in domestic coal availability.

Commercial diesel prices increased by 25-30% over the past six months, with escalated geopolitical issues having an impact of around ₹228 per tonne during the quarter.

The company said the broader demand environment remained supported by continued infrastructure spending, urbanisation, rural housing and industrial activity.

“Our Q2 and H1 FY’27 performance underscores Ambuja’s focus on quality growth despite seasonal and external headwinds. Strengthening trade and premium product mix improved revenue quality, while disciplined execution and cost management supported profitability,” said Vinod Bahety, Whole-time Director and CEO, Ambuja Cements.

Sales volume updates

On a consolidated basis, Ambuja Cements reported cement sales volume of 16.5 million tonnes in Q2 FY27. Trade volumes increased 8.6% annually, while the trade share rose by 6 percentage points to 74%. Premium products accounted for 37% of trade sales, up 2 percentage points, the firm said.

In Q2 FY27, the company commissioned 4.6 million tonnes per annum (MTPA) of capacity. This included 1.2 MTPA at Dahej, 2.4 MTPA at Salai Banwa and 1 MTPA at Kalamboli.

Ambuja Cements said 3.2 MTPA of capacity at Bathinda (1.2 MTPA) and Jodhpur Penna (2 MTPA) had stabilised and was ramping up in the second half of FY27. The company also expects to commission 2.4 MTPA of capacity at Warisaliganj in the second half of FY27.

H2 FY27 outlook

“We continue to strengthen the structural drivers of earnings through manufacturing excellence, energy efficiency, logistics optimisation and digitalisation, supported by a debt-free balance sheet. Our growth journey continues, with 4.6 MTPA commissioned in Q2 and another 5.6 MTPA ramping up in H2 FY’27,” said Bahety.

He added that the implementation of BCFC infrastructure, a higher share of renewable power, and the ramp-up of new capacities and additional incentives from these capacities are expected to support performance in H2 FY27.

The company maintained a debt‑free balance sheet with a net worth of ₹72,238 crore and cash & cash equivalents of ₹1,070 crore.

Further, Ambuja shareholders approved the proposed amalgamation of ACC and Orient Cement with the company, advancing the One Cement Platform. The schemes remain subject to the requisite approvals and are expected to be completed in FY27.

The logistics costs were moderately higher YoY due to higher diesel costs, partly offset by the reduction in primary lead from 265 km to 254 km, Ambuja said. Total cost in Q2 stood at ₹4,410 per tonne, excluding the impact of geopolitical conflicts, at ₹4,182 per tonne.

“We are on track achieving our cost target of Rs 4,250 per tonne by FY27. Our growth remains trade-led, in line with our strategy, while we continue to strengthen the institutional business through a comprehensive solutions approach with a focus on value and profitability,” said Bahety.

The company expects volumes to grow ahead of the industry in H2 FY27, supported by accelerated trade volumes and calibrated institutional sales. Bahety added that following the recent price increase of ₹10-15, the industry expects further pricing improvement over the next couple of months.

On Thursday, Ambuja Cements shares closed at ₹354.70 apiece on the National Stock Exchange, rising 1%.